Crowdfunding can be an effective tool for financing your startup expenditure. Whether you’re looking to start your marketing efforts or expand your client base, the crowdfunding provides a platform to gathering support around you and your company.
Having run start up companies, I have thought of the 5 most powerful strategies for launching a successful crowdfund:
- Tell your story straight and bright. As the old adage goes: facts tell, stories sell. When it comes to eliciting customer engagement, a campaign with a good story is an unmatched strategy. Did you experience some kind of obstacle on your path to entrepreneurship? Did a major life event influence your career choice or business decisions? Tell your story in your crowdfunding pitch to make a connection with backers. Describe the mission and the company vision for the short and for the long term.
- Provide value for value. Crowdfunding campaigns stand on If your startup offers fantastic products, rewards or opportunities, you’ve created a huge incentive for backers to pledge to your campaign.
- Introduce the market gap. A basic law of economics dictates that scarce supply inherently creates greater demand. Create greater demand for your startup by limiting one or more of the higher level rewards to just a few — this will inflate demand for those rewards and result in higher pledge amounts for your crowdfunding campaign.
- Build credibility and brand. Many backers will believe it when they see it. In other words, they require some kind of evidence that your startup is legitimate and picking up steam before deciding to back your crowdfunding campaign. Show your backers what they’ll be supporting in detail — how it works, how you came up with the idea, etc. Remember that you will likely never meet your backers, so the more proof you can provide that your startup is genuine the better.
- Interact with your “investors”. Interact with your audience through daily or weekly updates, social media, and responses to their questions. You can build anticipation and increase engagement in many ways. Post updates counting down to a big surprise regarding your project or conduct a product giveaway. When interacting with your backers, always encourage an open dialogue and engagement. In general, people would rather talk than listen. Treat your updates as a discussion more than a one way message.