10 Things Every Crowdfunding Campaign Needs

May 17, 2018
Posted in Insights
May 17, 2018 DCT Capital Fund

Real estate investing doesn’t need to rely on a handful of big-name investors; in fact, web-based crowdfunding platforms have been rising in use and popularity over the past few years.

Now is the time to use an online crowdfunding platform for your next real estate venture and bring your projects and startups to the 21st century. Before you do, however, here are ten factors that are critical to tapping into this rich vein of potential investors.

A Carefully Reviewed Pitch

A potential backer’s first impression of your project will always be through your pitch. Whether the pitch is delivered through video, print, or multimedia presentation, it needs to do one significant thing; persuade your audience into investing.

In a study by Georgia Tech, researchers reviewed over 9 million phrases pulled from 45 thousand Kickstarter campaigns to determine what kind of persuasive language tends to increase a project’s chances of being funded.

The study found that successful Kickstarter campaigns used phrases that stressed the importance of individual backers’ donations. Things like “With your help, we can” or “Your contribution will” bring a call to action that inspires people to invest in your project.

Successful campaigns also used phrases that established a sense of community among backers. Phrases such as “Come together” and “Our community” gives potential backers a sense of getting into something on the ground floor.

A Professional Platform

Picking the right platform for your crowdfunding campaign is integral to reaching your target audience. Many professional crowdfunding platforms tend to focus on certain fields and attract investors with specific interests.  At DCT Capital Fund, we specialize in creating a personalize crowdfunding campaign for your needs. Our professional platform will help you reach your goals and even allow you the financial freedom you deserve.

An Email list

It would be naïve to think that investors are the only people who help fund a project or startup. Having an email list is an excellent way to promote your campaign to potential investors, but more importantly, people who then promote the campaign to their own network.

Parameters

Like any project, it’s important to establish a budget and timeline, but it’s also important to communicate that to potential backers.

All campaigns across all platforms require that a timeframe and minimum budget be stated in the description. Use this as an opportunity to communicate the urgency of the campaign, or communicate stretch goals to encourage investment after the minimum funds have been met.

A Video

Ignitiondeck states that a professionally made video does much more to engage your audience than any line of text or still image ever could.

Something that capitalizes on the excitement of the project or startup increases the chances of potential investors deciding to help fund your campaign.

Keep in mind that a poorly thought out or low-quality video can be damaging to the credibility you are trying to establish in your campaign. Bad and uninteresting videos often become the primary reason a crowdfunding campaign fails.

A Social Media Strategy

This ties in with the email list. Having a social media presence is a great way to reach out to people who aren’t looking through crowdfunding platforms for the latest campaigns.

Social media is also an excellent tool to keep supporters and backers up to date on the status of the campaign. There’s also the chance that more passionate supporters of your project will share posts, which always help reach potential backers.

Transparency

How much money do you need? What is the expected timeframe of your project? Where is the money I give you going to go?

These are the unspoken questions a prospective investor has for every crowdfunding campaign they come across. Your answers to these questions must be direct, detailed, and specific.

More importantly, this is an opportunity for you to demonstrate your project planning skills and financial literacy. Showing potential investors honesty and demonstrating your expertise in what you are trying to accomplish is one of the best ways to change a maybe into a yes.

Communication Line with Backers

Whether it be an email newsletter, tweet, or blog post, establishing communication with backers is paramount to maintaining their support.

If a campaign stops updating backers, it communicates a lack of interest or worse, abandonment of the project. Sending regular updates to backers and investors acknowledges their investment and also doubles as a way to generate excitement for developments such as hitting stretch goals or introducing perks.

Post-campaign Communication

Whether or not your crowdfunding campaign was successful, it’s important to reach out to your backers and thank them for their support.

In the case of a successful campaign, it’s also important to send backers any perks they may have earned through their investment as well as give project updates.

Should your campaign not reach its goal, it is still important to reach out to your backers and let them know what plans you and your team have for the future. There is always the possibility of trying another campaign with adjusted parameters; keeping your backers in the loop increases the odds of their continued support.

A Positive and Enthusiastic Attitude

Regardless of your campaign’s success or failure, it’s important for you and your team to view the campaign as a learning experience. This means looking at the campaign with a critical eye and finding ways to correct mistakes and improve weaknesses for next time.

While it might be discouraging not to get funded, there will always be opportunities to launch new and better crowdfunding projects. Understanding that is paramount to success.

 

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