Are you planning a crowdfunding event for your project? If you want your crowdfunding event to be successful, you have to make sure to prepare and do your homework. Raising the money that you need is easier when you exercise sound advice.
Set a realistic financial goal
Defining the success of your event depends greatly on your financial goals. Setting a goal of a million dollars for your first crowdfunding event is unreasonable. It important to set a realistic
goal for your crowdfunding event so that your hopes are not dashed.
Share how the money will be used
Contributors to your project are eager to know how their resources are being used. It’s a good idea set clear expectations for how their money is be utilized to build trust and gain more supporters. If a crowdfunding project seems fishy or unclear, investors may shy away from getting involved. Be honest with how the money will be used to develop a trusting relationship with contributors, and they may be more inclined to sponsor you in the future.
Develop a project pitch and proposal
A poor project proposal and pitch will get your project ignored. If you want to attract people to your crowdfunding event, developing a sound pitch is crucial. When you believe in the power of your project, others will too. Spend a few weeks creating a clear message for your project that resounds with potential investors. Construct a solid, well-defined proposal, and have those you trust make suggestions for improving it.
Organize a campaign video
Designing a campaign video for your crowdfunding event is an excellent way to generate interest and to inform others of your plans. Keep your video less than two minutes long, and keep the message straight to the point. Market your video on social media platforms to get as many people interested in your crowdfunding event as possible.
Offer some perks
When a person or a business gives a small or a significant contribution, offer them a small reward and recognition for their help. Decide on simple ways that you can reward your supporters, and they will keep you in mind.
Use a reputable site
Make sure that the crowdfunding site that you post on is legitimate, or you may find yourself duped. There are a variety of sites that you can use to launch your event, so choose an appropriate site to gain exposure. Some suggestions are Crowdrise, Kickstarter, Indiegogo, Startup Valley, and RocketHub. In addition to your crowdfunding site, you should set up a regular website for your project to establish visibility, and to let supporters see what you are doing.
Set up banking for donations
Before you can collect donations, it is imperative to set up an account like PayPal or Amazon to gather the money. This step must be done and takes a few days to process, so complete this task long before you launch your campaign.
Many crowdfunding events fail due to poor planning and a lack of project definition. Do not doom your event for failure before it even begins. Research other successful crowdfunding campaigns for ideas. Do not be discouraged if your first crowdfunding event is not a raging success. As you develop more experience and clout with investors, your contributions will grow. Use this advice to organize a successful crowdfunding event that generates enough funding to make the project you love come to life.
Derek is currently blogging for Startupvalley, a platform that offers crowd funding for entrepreneurs. He enjoys blogging about different crowdfunding trends and news.
Photo Credit: www.crowdsourcing.org