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Wednesday, 06 June 2012 04:48

Tips for a Successful Crowdfunding Campaign Featured

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With so much talk about crowdfunding, you might think it would be a simple task to fulfill capital needs with ease, but there are many campaigns that don't bring in the returns necessary to get some projects off the drawing table. There are many reasons why a crowdfund is successful or not, making it important to plan well before you attempt one. Here are some tips for a successful crowdfunding campaign that will help you meet your funding goals.

An unsuccessful bid for funding can be harmful in multiple ways. Aside from not getting the funds you need, your stock can go down so that any future efforts to seek a crowdfund will suffer because of the failure of the first. Again, planning is what makes the difference, and the results will matter when future funding is needed.

Some important things you should know about how to successfully fund with a crowd source campaign are:

1. Tips for a Successful Crowdfunding Campaign - Learn How to Pitch Your Project

Some people say they just can't sell anything. If that is the case with you, find another way to get working capital because a crowdfund is all about salesmanship. Presentation is everything, especially at the beginning of a fundraiser. You might ask some of your friends (your first line of support) how they would present the facts and weigh the merit of each answer. Get ideas from anyone you feel has good reasoning skills.

You might also consider seeking the advice and/or services of someone experienced with matching up crowdfund projects with interested investors. There are some professionals who deal in crowdfunding regularly, and allowing them to pitch the project may be the best avenue to take.

Take time to create and rehearse your presentation carefully; review in detail any written information you will send out and get someone else's opinion on your presentation materials. The information should make it very clear what your intentions are and how they will lead to a profit line.

Have graphics that present your ideas in the best light and excite your prospective investors. Create a contagious term or title for your fundraiser that is easy to remember and will give it relevance. Consider a video that will strike the nerve of those who see it because most audiences will respond better to a visual presentation.

2. Tips for a Successful Crowdfunding Campaign - Outline How Funds Will Be Spent

Even if you plan to be very open about the processes after you have the money in hand, it won't do you any good if you don't provide detail when you are asking for commitments. You should have a much better concept of where funds will go than those you are soliciting for funds. Be honest about your expectations, and even let investors know about areas where you aren't completely sure about the end cost.

Explain how you arrive at any figures so it doesn't seem like you are inventing numbers just to get operating capital. Estimate highs and lows of any line items that aren't easy to pinpoint conclusively, and show a timeline of when money will need to be spent.

3. Tips for a Successful Crowdfunding Campaign - Make Phases for Crowdfunding

Depending on the amount of money you will need for completing your project or idea, it is often better to break it into phases and raise funds for each. There are two reasons for doing this. First, you can expect to get seed money to start sooner when you are asking for less initially. Of course, you need to be certain that your first funding allows you to make progress from one point to another; otherwise you will look inept.

Secondly, you may find other sources for financing that open up after you get the wheels turning. This isn't assured, but the conditions are better for financing through a lending institution once there is some progress made toward the development of a product or idea.

4. Tips for a Successful Crowdfunding Campaign - Establish Rewards

Depending on the type of crowdfunding you do, it may be advantageous to give perks to those who donate funds to your cause. There are different ways to do a crowdfund. If you believe you can get people to give you money without seeking a return, setting up a reward system based on how much they give is your best option.

5. Tips for a Successful Crowdfunding Campaign - Acknowledge What People Do

People want to receive some gratuity for their investment or donation. This can be accomplished in a number of ways. If nothing else, a thank you page at the website where the money is vested or given shows appreciation. A plaque that speaks of a giver's generosity is another way to make donations special.

6. Tips for a Successful Crowdfunding Campaign - Use the Power of Social Networking

Never underestimate what connections through social sites can do. Many times, funds are raised for worthwhile projects because the person needing the funds has a good following on FaceBook or other social media networks. The wonderful thing about social sites is that for every contact a person has, that contact has contacts, too.

When it comes to tips for a successful crowdfunding campaign, these are six essential parts of crowdfunding that deserve your attention. You cannot expect the results you want to achieve without structuring your campaign and presenting your idea so there is interest in it. There are many other causes people are willing to put their money into, and selling yours effectively is the way to move to the top of the list.

Read 7781 times Last modified on Monday, 08 October 2012 12:48

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