Crowdfunding – Important Do’s and Don’ts

By Kaelynn Bailee, CrowdFund Beat Guest Post,

It is common to entrepreneurs seeking crowdfunding. Crowdfunding sites turn product ideas into reality or services. It has become a new way to finance projects and startups. When few years ago, you could not start a business or get a product without resorting to traditional financing channels, today there are many projects that have been supported financially by a mass of users, thanks to platforms like Kick starter or Indiegogo. But success in this field is not based solely on having a good proposal; everything that surrounds this proposal has to be well targeted.

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Here are some tips on how to launch a crowdfunding campaign.

  1. Tell your story

Your story as an entrepreneur, as a person with initiative, must be of interest to the people. The public crowdfunding campaign wants to know how you got there, and why you decided it was important to carry it out.  The public needs to be clear that it is necessary and must pass it in the best way possible. You have to explain the project, the advantages of support and how essential is the funding to achieve the ultimate goal. In the campaign of crowdfunding the project must appear attractive enough so that the audience wants to be part of it.

 

  1. Be wise

Do not ask for more than you need. Crowdfunding public knows what is betting. If you ask for $100 for a product that that could be sold for $50 thousand, someone will find out. The campaign will be a failure and the entrepreneur will pose a negative image to the market. The crowdfunding is only successful if people buy their cause. So before creating the campaign, understand if there is demand for your project. The entrepreneur should enter into a collective funding with everything organized. You cannot leave the end of the collection, for example, mounting the logistics plan to deliver what you promised. “If you leave to the last minute, the delivery will fail or the cost will derail the project.

  1. Be Social

Use social networks to publicize your campaign. The exposure on the web can yield new investors.  Using social networks to mailing and other marketing techniques can help boost the campaign. If possible, public relations may work to appear in the media.

 

  1. Show up

Make a video about the product and appear in it, or let people know who you are. Start talking about your knowledge of their projects, who are the partners in the venture and the benefits you will deliver for those who bet on your campaign.

 

  1. Reward

Providing rewards gives value to the contribution you’re asking. Users of Kick starter, Indiegogo, Dripping and others are not altruistic without more. One thing that excites the party about the project is who will get lots of money. In most sites rewards of crowdfunding campaigns can be categorized. We must also consider logistics. If you offer your product in exchange for funding you can be sure to produce and distribute the units that you are promising. Once people have already made their economic contribution, they should not neglect it. A crowdfunding campaign has to be constantly updated to show that is alive. The public who collaborated wants to know what’s new and, after all, the first objective is to convert users into financial backers, but the second is to transform these into project diffusers.

 

The Don’ts of Crowdfunding

Here are a few mistakes to avoid when Crowdfunding to avoid pitfalls:

 

  1. Whom you ask

This is probably the most common mistake. Remember that 75% of “crowdfunding” ask for less than $ 10,000 and get something around 100-200 supporters. Where do these supporters often come from? Not that it is impossible to turn strangers into fans … you can. But during a “crowdfunding” campaign, this will be like a salesman calling people from the phone book and trying to turn them into extremely difficult customers at a low conversion rate. It is not about asking yourself questions like where I can buy dissertation online and do research and get one. It is about putting all your efforts to please the client.

 

  1. Ignore Individuals and focus on mass

Talk to people individually. If you only talk to the team, their chances of establishing personal relationships fall. Your first goal is to reach individuals. This is literally the difference between a successful campaign and a fiasco.

 

  1. Try to be Viral

Crowdfunding” usually last a month. This is a reduced amount of time to get in as long with whom you need.  If you want to try to be viral after the end of your campaign, you can try. Just do not try during the campaign. Not worth it, given the small chances of success.

 

  1. Request Other

This is a mistake that happens a lot. Yes, you need to be specific and clear when you want to. But as we discussed before it needs to interest the person

Kaelynn Bailee is a passionate crowdfunding who loves to write on social network fundraising. When not working, she spends her time blogging out of her passion for writing.

 

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