How To Win At Crowdfunding?

How To Win At Crowdfunding

Many don’t know, but crowdfunding is social–it’s based on building relationships. Too many times people try to start a crowdfund with the idea of getting what they need just on the pure basis of a good idea or charity. However, more effort is required in most cases. Here are a few tips to follow:

Ask the right people. There’s a difference between casting a wide net in the ocean and casting a wide net in a lake. In other words, make sure you’re talking to the right people–your target market. Sure, many would encourage you to email and advertise your crowdfunding initiatives to as many people as possible, but doing so is ineffective and can be costly. Instead, figure out the people who are the most likely to fund your project. If you don’t know who they are, it’s time for you to put your project on hold and do more research.

Build relationships before you even ask. After identifying your target, don’t just ask for their money. Would you just blatantly ask a stranger for money without at least asking how they’re doing? That’s called bad panhandling. Now, imagine doing such on the Internet. It’s not going to work. The most successful crowdfunding campaigns already have a fanbase. Create a plan marketing your product, services and/or cause to your potential fanbase. Then announce your crowdfunding campaign after you have established a relationship with your fanbase.

Add value through your campaign. What does your fanbase get from donating? Why should they give you money? Is it the feeling of doing good in society? The feeling of being a part something big? Or a tangible reward? These are questions you should ask before allowing your campaign to go live. There’s no better way to say thank you than to give your fanbase what they want or need.

Don’t stop once you reach your goal. You’ve reached your goal. In fact, you’ve surpassed it. But that’s not it. Don’t miss out on your biggest opportunity–remarketing and data. After formally thanking those who have funded your project, build a database for potential remarketing and to gain further insight into your customers. Learn who they are and their interest. Remember, it’s about relationship. And you don’t want your fanbase to feel like they had a bad one-night stand.

Remember relationship is key.