Mike Paffman, CEO, VIRGO PR
Crowdfunding is a method of raising money from a large number of people. It helps to provide capital to get a campaign or a project off the ground. Businesses, charities, or individuals can create a campaign. Crowdfunding platforms such as GoFundMe and Kickstarter have become very popular. Rather than one or two investors, a ‘crowd’ funds a major project. It may not be a traditional method, but it helps to provide the necessary boost to cash flow and often times public relations campaigns help with creating awareness around crowdfunding. Most crowdfunding campaigns have set time frames and have specific monetary goals. Given below are a few tips for a successful crowdfunding campaign.
Have a targeted message
It is important to define the target audience for the campaign depending on their age, gender, interests, and location. This would help to position the project that needs to be funded from the right angle. A message has to be crafted for the target audience that will engage the audience. The message would also directly address the needs and the wants of the audience. It is not possible to appeal to everyone so it is best to identify the product and service that best appeals to the target audience and work from there. For instance, if the product is a foldable bookshelf, then the message should be crafted for avid book readers.
Build a community
The key to successful crowdfunding is about building and engaging a community of followers. There should be an email list of people interested in the product or service. That will be the group who will get the message out and contribute to the campaign. The community should believe in the idea and they would allow the campaign to leverage their social media platforms to get the story of the project shared. This would help to raise awareness about the project and also help to make the story credible to a new audience. Channels such as newsletters, social media, and surveys can be used to get people on board. A community also helps to reach donors outside of ones own network.
A video for a campaign is always useful because it can be used across multiple platforms. It also quickly introduces the project to potential customers and investors. Without a video, the target audience may lose interest , as reading text is considered tedious by many. The video can describe the idea behind the project, the state the project is in, why money is needed and how it will be spent. The video should also not be more than three minutes long and should cover important points quickly.
Rewards and incentives are a great way to thank people who support a campaign. People can get incentives on the basis of their individual donation or some rewards could get unlocked after funding goals are met. The incentives could be creatively designed cards, product samples, or branded T-shirts. The audience and investors should also be constantly updated so that they feel involved.