SA Crowdfunding Blog

Sunday, 27 January 2013 19:44

Why Seth Godin Uses Crowdfunding and What Can We Learn From His Campaign

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So why exactly did Seth Godin, the world’s most well-known marketer use crowdfunding for his latest book? That's the questions many are asking. And how did he manage to raise more than his $40,000 in just 3 hours?

Two separate questions really as the one are related to the benefits of crowdfunding and the other, well obviously, what can your crowdfunding campaign learn from him?

Lets first look at, apart from the money itself, how else we benefit from crowdfunding. Three of the most obvious benefits to crowdfunders are:

First of all it clearly helps you to understand how much demand there is for your idea. The more advanced your product is in its development the more accurate this feedback really becomes. By taking your offering directly to consumers through a crowdfunding platform, you have the opportunity to get feedback and learn what people think about your product. A great market validation opportunity really.

Secondly it helps you to test your marketing and get the message out there about your product or brand. If the world’s best marketers are now using crowdfunding to market their products then who are to argue? A Crowdfunding campaign is a real marketing opportunity for your business. Entrepreneurs are encouraged to use their campaign as a platform to post an unlimited amount of information about their project — this can include anything you think your audience would find relevant, including commercials, team pictures, and press mentions. SatrtMe provides logos and widgets that can be easily embedded into your website, blogs, and emails to drive traffic to your project.

Thirdly you get the opportunity to Start to recruit your first customers, or if you are an existing business, broaden your customer base. Crowdfunding allows you to build a ready consumer base, which will be crucial once you start growing your business. You’re engaging with them and their feedback and building your mailing list as you go — you leave your campaign with the email and mailing addresses of your contributors, which allows you to continue the discussion and make business/product announcements well after you’ve raised your funds.

All three of these certainly fits neatly into what Godin may have been thinking when first looking for ways to communicate his book to the market.

Now lest see what we can learn from this campaign and just why it was so successful.

First of all Godin has an enormous following on social media. Now clearly not all of you will have a readymade audience to who to communicate your crowdfunding campaign to but looking at most successful campaigns out there, this certainly seems like a big bonus and something almost all successful campaigns have in common.

Godin sent out an email to his “True Fans” and they responded. Not only could he send the then an email but he focussed on his social media followers using twitter and Facebook very proactively.

Used links on his blog and Crowdfunding badges to further point anyone who visited his websites to the campaign. He had a clear objective and it was to get funded as quickly as possible.

Crowdfunding allows you to tell a story about your business or concept and this is really what people buy into. Tell a compelling story helped greatly by the power of video. Many contributors to Godin’s campaign said that the video really moved them.

Furthermore Godin is of course the authority on the world of traditional and self-publishing and writes passionately about it day in day out, both on his blog and the Domino Project. The video is also just too brilliant to ignore. Seth gets straight to the heart of why the world needs this to succeed in a pragmatic, no BS way that you just can’t help but adore.

He wrote a great article here actually on Why (some) Kickstarter Campaigns Fail and why you do need a community to make your Kickstarter project a success. He talked about his reflections on the amazing outcome of his campaign in Reflections on Today’s Kickstarter.

So over all there is certainly plenty for us to take away from this. Let’s trust that your campaigns will learn from this and the results will be similarly inspiring.

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