Crowdfunding may appear to be the perfect solution for many early-stage businesses to raise much-needed capital quickly. But astute businesspeople are aware that the real benefit of a successful crowdfunding campaign isn’t just the cash the so-called crowd raises, but rather how the outcomes can position your company for the upcoming round of funding from venture capitalists and other investors.
You must design a successful pre-order or crowdfunding campaign that moves quickly, demonstrates the viability of your startup by enlisting early adopters and devoted supporters, and makes a compelling case for future funding. Download this guide if you want to learn how to create a strategic crowdsourcing campaign that attracts investors and moves quickly.
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Essential components of a crowdfunding campaign plan
A crowdfunding campaign plan may contain the following important components:
What is a crowdfunding campaign plan?
Startups and other new businesses can raise funds for their business and gain exposure by developing a crowdfunding campaign plan. Businesses can host their campaigns on crowdfunding websites and may give the platform they use a portion of the funds they raise. With the help of these strategies, startups may be able to raise small sums of money from a variety of sponsors to support the extensive development of their goods or services. A well-thought-out plan for a crowdfunding campaign could guarantee that a company has the resources needed to reach its funding targets and introduce a new service or product.
How to create a successful crowdfunding campaign plan
As you and your team members draft a plan for a crowdfunding campaign, take into account the following steps:
1. List your personal expectations and crowdfunding goals
Setting goals is a crucial part of creating a successful crowdfunding campaign plan because it enables you to determine the amount of funding you need to launch your new product or company and monitor your progress over the course of the campaign. Outlining your own expectations and campaign objectives as well as the overall financial goal of the crowdfunding process can be included in this. In addition to monetary gains, you may set goals to increase your email subscribers or social media followers in order to expand your community and audience.
When developing a crowdfunding goal, consider several variables, including:
2. Decide on a budget
After stating your objectives, you can choose a campaign budget so that you and your team members are aware of the funds you have to use for your crowdfunding efforts. Some crowdfunding platforms may take a cut of the funds you raise from your organization, while others may impose a flat fee.
Consider whether the fee necessary to pay the crowdfunding host site and include this in your budget in addition to marketing and labor costs. Knowing how much money you have available to invest in crowdfunding can help you allocate tasks to team members, plan how much each task will cost, and outline how much time each member will need to complete each task.
3. Select a crowdfunding platform
You can choose the platform you want to use once you’ve decided how much money you can spend on a crowdfunding website. In addition to the site’s fee schedule, think about evaluating your location, the project type you intend to carry out, and your funding model. Depending on your industry and project, different platforms may offer a stronger community and better exposure for your technological project, game, or other type of product.
Additionally, funding models can differ, so if you are confident that you will meet your donation goal, think about using a platform that offers fixed funding, as they will still receive their share of the funds whether or not you do. Instead, flexible funding platforms only take their cut if you reach your fundraising target; otherwise, the donors get their money back and the platform gets nothing.
4. Outline your schedule
Having a schedule can help you stay on track to accomplish your objectives during the pre-launch, launch, and post-launch phases. You can review all the tasks you and your team may complete during the crowdfunding campaign by making a timeline and organizing them according to the project phase.
It might be advantageous to maintain your openness to change as the campaign progresses and your flexibility with your timeline. You may find it challenging to control every step of the process because you depend on other people, donors, and host sites, so your schedule may change as a result of delays or plan changes.
5. Recognize your team members and their responsibilities
Consider listing your team members and their responsibilities after establishing your budget and outlining your schedule. To ensure that the team completes all aspects of the campaign without repeating or duplicating tasks, it is critical that everyone involved is aware of their respective responsibilities. You might choose to use crowdfunding services in addition to people to organize and complete the project.
Consider candidates who are familiar with the product you are developing and people who may have helped develop a similar product in the past when choosing team members other than friends or current coworkers. They might be able to share the outcomes of their prior work and offer knowledgeable advice on successful marketing and crowdfunding techniques.
6. Develop a prototype
Making a prototype of your project idea is a good way to make it more concrete and enables potential donors to learn more about the product. This can assist you and your team in identifying any production flaws or errors and resolving them prior to the product’s official launch on the market.
Additionally, a prototype enables contributors to offer feedback on the functionality or usability of your product, which can assist you in making necessary adjustments as the item develops. Even if your prototype doesn’t match your finished product’s quality or style exactly, it can still give you an idea of what’s possible and what modifications you might need.
7. Create your product and price it accordingly
You can start developing your finished product and figuring out a unit price based on your prototype, costs, and market research. Consider whether there are comparable products on the market as you create the item and how your item might be different from them.
You should also think about your target market as well as the features and cost ranges of products that are similar to the one your team is designing. You can use your budget to show how much you can spend on product development and how many units you need to sell to break even or turn a profit.
8. Identify your marketing strategy
Once you’ve finished your project, think about your crowdfunding marketing strategy and the techniques you and your team members might employ to promote the product and attract potential donors. If you use a marketing or advertising agency, think about getting in touch with them ahead of the launch of your crowdfunding page to make sure they’re ready to deliver content on time.
Planning your campaign messaging and maintaining consistency across all marketing channels may prove beneficial. In order to create authentic branding content and engage your target audience, take into account your team’s values, mission, and project goal. You can consult with every team member and jointly develop a marketing strategy that aligns with the organization’s goals.
9. Reach out to your community and create an emailing list
Building an audience is crucial to a successful crowdfunding campaign because it may directly correlate the number of people on your emailing list with the amount of donations you receive. Use social media platforms and other marketing tools to get in touch with as many people in your team’s network as you can, including coworkers, friends, and family.
You could make a landing page for your website where you can collect visitors’ emails and add them to your email list. This means that your campaign may depend on you producing compelling and high-quality email content. Even though it’s unlikely that all of your subscribers will make a donation, they can spread the word about your product to other potential customers, helping you to increase brand recognition and engagement.
How do you plan a crowdfunding campaign?
- Calculate Your Fundraising Goal.
- Choose a Crowdfunding Platform.
- Establish a Timeline.
- Develop a Marketing Strategy.
How do you create a successful crowdfunding campaign?
- Target your message. …
- Learn what makes a good campaign and a bad one.
- Build a community before launching. …
- Speak to experts. …
- Know your launch target. …
- Use multimedia.
How long should a crowdfunding campaign be?
When organizing your campaign, we advise keeping the duration to 30 days or less. Our research shows that campaigns with shorter durations frequently have higher success rates and help your project feel more urgent.
What are the key criteria for a successful crowdfunding campaign?
- Frontload your campaign. …
- Tell a great story. …
- Make a great video. …
- Look professional from all angles. …
- Be detailed and specific. …
- Reward your backers for the risk they are taking. …
- Offer multiple price points. …
- Spread the word.