Successful crowdfunding campaign needs attention and dedication. According to Massolution, the total global crowdfunding industry fundraised $34 Billion in 2015. The biggest piece of the money came from P2P lending with $25 Billion, followed by donation & reward crowdfunding with $5.5 Billion raised and equity crowdfunding with $2.5 Billion…And the growth keeps accelerating. Still we are not there where we can say that crowdfunding is mainstream. People recognize the word crowdfunding but still there are many unknowns and assumptions towards it.
Crowdfunding is not to place campaign online and wait for the money to come.
As many of those who have actually run a crowdfunding campaign know, being successful is not easy. You need to have to research similar campaigns, set realistic goal, create great trustworthy & transparent material, rewards and promote it before and during the campaign.
Research Similar Campaigns
To get started, it’s good to research similar projects and study how they have done it. Search with keywords relevant to your cause or product to understand what successful crowdfunding campaigns have done and why unsuccessful campaigns have failed. Crowdfunding platforms don’t typically delete their old campaigns and there is a lot of data available. It’s smart to use it!
Set Realistic Goal
It’s easy to throw a number and wish for the best. Spend some time to calculate what is it that you really need and how your story is in line what your target is. Remember to take into account that platform take their fee and money is spent also when offering rewards. Bear in mind that contributed amount can be higher than the target amount. This can also be beneficial when talking to media, influencers and bloggers. Reaching $9000 on $10,000 target is good (unless you are using all or nothing platform. Kapipal is a keep it all platform) but not appealing. However, raising $45,000 on a $5000 campaign can gain some attention.
Importance of Content
Content is the king they say. That’s true in successful crowdfunding as well. Think of your target audience. Think of your cause or a product. What would you like to know if you were the person watching the campaign? Some of the key elements include:
- Video – typically maximum of 2 mins long appealing video explaining your cause or product. Video is not mandatory on Kapipal but highly recommended for better presentation and viral effect.
- Pictures – Enough relevant pictures in-line with your story or presenting the cause or product visually.
- Transparent and trustworthy copy text – Write about the story and people behind the campaign, why are you raising money, how the money is spended, why people should contribute… Gain trust and excitement!
Kapipal is donation & reward based crowdfunding platform which allows one to raise money only as donations. This works in certain cases, like common good & healthcare. Rewards increase the level of contribution. Getting something back from contribution can trigger person to more like contribute. Rewards can be pre-sell of an album, merchandise, meetings, VIP treatment, video, photos…etc. Rewards and the purpose of them can vary depending of the campaign. A starting new artist may sell their upcoming album on discounted price or other extra treats and on the other side, even campaign looking for pure donations may want to offer something in return for their donors. A photo, video or partner’s discount code can be free to provide but can make a big difference whether the person will donate or not.
As said in the beginning, successful crowdfunding is not just placing campaign online and waiting for the money. First of all, how would people know about your great campaign unless you make effort to promote it. Some campaigns, especially product related, needs to be started before the campaign actually goes live. Generating email list, social media presence, blog posts and contacting media / influencers to create buzz around the campaign. Once the campaign is out you already have a list of emails to send the link and potentially media / influencers who are willing to write about it. To find media / influencers, you may use the same method than researching similar campaigns. Search articles and post about similar campaigns. Contact writers to present your campaign. If they have written something similar in the past they are more likely to write again.