Before I am going to main topic, I just want to give a little idea about crowdfudding for new comers. Crowdfunding is the practice of funding a project or venture by raising monetary contributions from a large number of people, today often performed via internet-mediated registries, but the concept can also be executed through mail-order subscriptions, benefit events, and other methods.
HIDDEN FEE ALERT! Sites claiming to be ‘100% Free’ will charge your donors up to 15% and you’ll still need to pay 3% for processing. GoFundMe will never charge your donors anything.
I’ve received a lot of emails, DMs, and facebook messages asking for help with campaign promotion. As a general rule, I am happy to tweet out your campaign if I think it’s pretty awesome. However, please keep in mind that like everyone, I want to be treated like an individual (as I’m sure other bloggers do). When I get a pretty standard email or tweet and see the person left a similar message at a hundred other places, I am less likely to pay much attention.
When I receive a personal email and I can tell the person either has read my content or has at least taken a second to look at CrowdCrux, I am more likely to respond positively. In an ideal world, this wouldn’t be the case, but hey, I am human. You’ve had that next billion dollar idea and you’re going to raise your first $25k via Kickstarter, Indiegogo or another crowd funding site to make it a reality.
Simply put, crowdfunding is the process of asking the general public for donations that provide startup capital for new ventures. Using the technique, entrepreneurs and small business owners can bypass venture capitalists and angel investors entirely and instead pitch ideas straight to everyday Internet users, who provide financial backing.
Competition for crowdfunding dollars is already high, and destined to become even more competitive as time passes. Launching a project on a crowd funding site is far from a guaranteed success – less than half of the Kickstarter projects reach their funding goal, and around 12% don’t receive a single pledge, therefore no matter how great your product is you’re going to need to get web traffic to your funding page or you are going to struggle to raise the necessary capital to get your project off the ground.
Phase 1: Build your audience
The most successful entrepreneurs know the power of leveraging other people’s money to get to where they want to be. Well the best marketers know how to leverage other people’s audiences to do that too. You want to start this phase at least 3-4 months before you plan to launch your funding campaign.
Phase 2: Setting up your Funding Campaign
It’s important to set a realistic target for your project, very few projects with funding targets over $100k have ever been successful on Kickstarter. It’s important to think long and hard about how much you need to raise to fund your project and to pay for all the incentives that you plan to offer your backers.
Phase 3: The Campaign is Live
So, you’ve made it to launch day! This means you’ve been promoting for a few months and have amassed a sizable and engaged audience.
Phase 4: Monitoring the Campaign
Monitor your performance versus your goals. If your campaign begins to fall behind your goals then you could be in trouble. Many crowd funding sites are all or nothing so all that hard work could mean that you end up with nothing. The best thing to do is to increase the frequency of your communications and offer extra incentives to increase traffic and funding to your campaign. If you are running a Kickstarter campaign then you can use a service like Kicktraq to monitor your project and get more in depth insights.