How to Have A Successful Crowdfunding Campaign

July 15, 2018
Posted in Insights
July 15, 2018 DCT Capital Fund

Crowdfunding is an excellent tool for getting companies of all sizes rolling quickly. To ensure that your ideas are presented as clearly as possible, it may be useful to diversify the way you present your proposals. For example, putting yourself out there by showing photos or videos can be a right way of establishing a connection with the audience you hope to receive donations from and putting a face to the name allows people to see that your proposal is real. If you expect to receive investments you have to realize what it is your asking for. By showing your face to the consumer willing to invest you are helping build trust by showing them that you are a real person with thoughts and ideas. By asking strangers to invest, you are asking them also to take a leap of faith. Below are a few tips of information to help investors take the plunge for you.

Crowdfunding, What Is It?

Crowdfunding is essentially cyber fundraising. People donate depending on their interest in the products or services success. It is simple to set up online, but this doesn’t mean your fundraiser’s success is necessary set in stone.

One way to have excellent results is to have a clear and concise story when communicating your idea to your potential donors. Using video or concepts as a tool is great to build trust with people. If you have a relatable story, and you are honest about your goals, people are more likely to be enthused about your product or service. Be wary when setting your goals though. The quickest way to lose investors trust is not to deliver, so be realistic about your goal when you are proposing your product or service.

Be Prepared to Be Online, A Lot!

Be prepared to have a network dedicated to your crowdfunding campaign and use it to be open about your proposal. Something as simple as being available to answer any questions people might have about your product or service goes a long way in building confidence in your ability’s. Showing that you care about your consumers and investors goes a long way in maintaining a healthy consumer-creator relationship.

Offering rewards through your networks can be very appealing to those considering investing in your product or service, so be sure to make these rewards worth their time and money. It also might pay to have rewards based on the level of money the consumer spent on investing in your products/services progress. Things such as early access or receiving credit in the development process may be better left to the higher investors, but that doesn’t mean you should skimp out on those minor donations. It’s okay for those on the lower end of the spectrum to receive rewards for their efforts too and it is up to you to decide what is appropriate based on their contributions.

 

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