Crowdfunding: It’s About More Than The Money

Crowdfunding is about spreading the word – generating buzz and a sense of urgency. Yes, it’s about money. But money only fulfills part of the budding entrepreneur’s needs. The momentum that a successful crowdfunding campaign can stir up has given some projects far more publicity than the money could have bought.

Wondering how to get that momentum started? Here are a few simple tips gathered from studying some of the past years successful campaigns.

1. Don’t be greedy.

Do you need $4,000 to get your project off the ground? Great! Ask for $4,000. Don’t ask for $10,000. Ask for what you need, nothing more.

2. Clarify.

What exactly do you need the money for? By explaining where the money is going, you’ll give potential backers confidence that their money is going to be put to the proper use.

3. Don’t rush.

Did you book your CD release with no CDs and need to raise money to press them? Too bad. Give your project the amount of time it needs to gather momentum, build a name and attract backers. A campaign that seems rushed and sloppily put together won’t be successful.

4. Be creative.

Make your campaign video worth watching. Whether it’s hilarious or just incredibly slick, a well thought out video can make or break your campaign. Watch your video and ask yourself if you’d share it. Make something worth sharing.

5. Create cool rewards.

If you want people to hand over their hard earned cash to help your project, you’ve got to give them something in return. Be creative with your rewards; offer things and experiences people actually want and don’t cheap out. Perks that are cool and exclusive are proven to work.

6. Talk to people

It sounds cliche, but no matter how cool your product is, how organized your campaign is or how awesome your perks are, you’ve got to engage your audience. Talk to people. Get them so excited about your project they’re willing to share the love.

The takeaway? Be honest, be humble and be nice. Oh, and have a kick ass idea. That’s important too.

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2 Comments

  1. Tom

    Nice list and the last point I would add is buffer in a lot of time to fulfill your rewards, especially if you are starting a new business and do not have all of the product in. Suppliers may need to change, there will be delays in orders, manufacturing, etc. so be cautious and give yourself plenty of time to fulfill the rewards.

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