You may have a great idea, but remember that it will need funds to grow and achieve the desired impact. Crowdfunding is definitely a great option, but it is not as easy as it looks. Of the thousands of ideas that are put up for crowdfunding, only a small fraction is able to achieve the targeted amount of funding. In addition to having a great idea, you also need to utilize the correct approach to crowdfunding. Here are some tips and suggestions in terms of how to crowdfund your idea.
Define your idea in simple terms – Instead of using heavy technical jargon to sound professional, you will do well to explain your idea in simple words. In case you have a business idea, investors will want to know basic things such as what makes your idea unique, what is the demand for the proposed product or service, how the idea will influence people’s lives, etc. Providing clear answers to such questions will help achieve better results from your crowdfunding initiative.
Select the type of crowdfunding – Based on the idea you have in mind, you have to accordingly choose the type of crowdfunding campaign. If you are working on social causes, donations would be the preferred choice of crowdfunding. In case of a business idea that will eventually generate profits, it is natural for investors to expect something in return. In such cases, you can offer rewards, discounts on your products or services to investors. You can also go for debt financing or equity. In both these cases, investors will stand to gain when your idea starts making profits.
Choose the right crowdfunding platform – Every crowdfunding platform has its pros and cons. So, make sure you go through the terms and conditions before choosing a crowdfunding platform. The right crowdfunding platform will be one that looks into the needs of both creators and investors. Check out the fee charged by the crowdfunding platform and payment processing charges. Choose a platform that can assure you of adequate visibility for your crowdfunding initiative.
Hire a professional for your crowdfunding campaign page – Posting lengthy paragraphs about your idea may not yield desired results. Instead, you need to make the content short, crisp and clear. It can be achieved with infographics and lots of video content. For the best impact, it would be better to hire a professional to create your crowdfunding campaign page.
Promote your crowdfunding campaign – You cannot rely solely on people that browse through the crowdfunding platform. Once your crowdfunding campaign is activated, you need to ensure its visibility to as many people as possible. You can work with options such as email marketing, blogs and forums, online and print media and social media postings. If you have funds, you can also choose paid advertising to promote your crowdfunding campaign.
Throughout the crowdfunding campaign, you need to remain active to respond to all types of queries and comments. This will help build trust and confidence among potential investors. Also, make sure you provide updates at regular intervals. It will include updates about the progress of your crowdfunding campaign and steps you are taking to grow your idea.