Crowdfunding: How to promote a project?
What is crowdfunding?
The term Crowdfunding means the collective campaign initiated by organizations or crowd of people in order to get support from different sources. These efforts are targeted to backing the idea and pooling the funds together, usually via the crowdfunding platforms on the Internet. Crowdfunding can be organized for any purposes such as: post-disaster aid, different projects seeking support from fans, joint investments, political campaigns and more.
Crowdfunding is inspired by crowdsourcing – the broader definition which can be described as the practice of obtaining necessary funds for implementing ideas by getting support from a large group of people or even better online communities, rather from conventional sponsors. Crowdfunding is a component of this concept targeted to picking small investments from multiple channels in order to finance a specific project.
What determines the success of the company on the crowdfunding platforms.
Firstly ask ourselves whether it is possible for a young and unknown team to raise funds for the implementation of the project using such method. Let’s consider this on the example of the most popular services such as Kickstarter (according to the Global Alexa Rank) as well as fresh and rapidly developing funding platform Crowdtilt (the latter is represented by iKantam).
Primarily, success of the project depends on the availability of the five elements:
1. Video from organizers/ developers
where you or your team are describing the project, its essential issues, newest features and of course the reason why it should be financed by the community. This video should be informative, interesting and exciting, preferably – filled with a humor notes. The motto should be quite trivial: keep it simple, be yourself and be sincere. Projects with videos are more successful versus those without. For instance, Kickstarter offers a good manual on “How to make an awesome video”.
2. Video demonstrating the project concept and main idea.
It should describe the purposes and what you want to do achieve in the end. But at least, it’s preferable to have some kind of the project prototype to demonstrate it to the community.
3. Rewards for supporting the project.
It is one of the strongest motivators for people to contribute their money. For example, pledging $10 or $50 you can have a possibility to get a gift after the product is released according to the contribution amount. In general, there can be a number of different awards, from $1 to $10000.
4. The estimated project budget.
If your rates are too low, you cannot expect significant funding (but of course there are some exceptions take place). On the other hand, if the rates will be too high, you can be considered as a deceiver and almost no one will invest you. But if you are great star, you can easily request a million but to get three eventually. So before showing the expected budget, you should assess your potential, skills, capability, resources, project complexity, and foresee the possible interest of the audience to this project.
Probably, this is the most important factor for further project promotion. Almost no one will find your project on crowdfunding platforms occasionally. Before launching the project it is necessary to conduct a marketing campaign throughout the social networks, specialized forums, and blogs in order to provide the appropriate information (articles, images, videos, reviews) to the largest possible audience. It would not be superfluous to hire some marketing company for this. In this case, lots of people will be informed about your project bringing additional funds and increasing the chance of possible success – the second chance may not happen.
A piece of optimism
However, according by statistics provided by Kickstarter, in average only 25% of all projects collect the required funds. The stats include everyone, from novices to industry giants, so taking into account this information, a chance of success of young and unknown commands even lower. But using all listed measures properly, you will get a good chance to succeed in crowdfunding.
Alex Guanlao is a dedicated blogger, e-commerce and SEO specialist working for iKantam. His passion is to write on internet and technology related topics. Having vast experience in this field, he seeks to provide great content and quality.