A Quick Visual Guide About Crowdfunding
Here at Crowdtoolz, we provide important information for beginner to seasoned crowdfunders. It’s important not to rush into any of your campaigns.
Why?
The right amount of preparation can mean success or failure. The majority of crowdfunding campaigns fail, not because the product was bad, but the company didn’t have all the steps completed before going public.
Should You Launch a Crowdfunding Campaign?
There are a lot of reasons for and against crowdfunding. For startups, it may be the best way to get the funds to help make your product a reality. Established companies are even using crowdfunding to gauge public interest.
Take an honest look at your company and decide if going this route is the best decision.
Fixed Versus Flexible Funding
Depending on the platform, you will be going “all-in” or “what I can get.” More specifically, you are choosing to go for a “fixed” or set amount of money that must be raised in order to receive the funds. Or you’re going “flexible” or taking what you can get, which might be much less than you actually need.
If you’re going to crowdfund, you need to think about what type of campaign is better for you. Can you still fulfill all your backers with less than your campaign goal? If not, don’t even try.
Who’s Actually Backing Crowdfunding Campaigns?
This information shouldn’t actually be that surprising. The majority of backers are from the United States, Male, and 25–34 years old. Though 35–44 years old are close as well.
It seems that unicorn campaigns still exist. Those project get huge amounts of pledges, but then the unavoidable wait starts and likely a delay or two.
Do you plan on backing more campaigns in 2017?
Don’t Wait on Social Media
You should already have set your social media accounts. Facebook will be the most important next to your official website. With Facebook Live, comments, and messages; you’re going to be able to communicate with potential and completed backers.
Don’t think it’s not important, you could convert on-the-fence people with the right compelling message.
Don’t Think About Influencers Until You’re Shipping
We did an influencer test using Famebit. What we found is that people like cool products. But unless they’re readily available, there’s no conversion. You can’t get someone excited for a product they won’t see for months.
If you’re ready for retail, sending review units to influencers could get an additional boost for consumers who are ready to purchase, but don’t use it during your campaign.
