Five elements for a successful crowdfunding campaign:

Crowdfunding has many benefits and is a great way to start your venture.  Only some of those benefits are:

– You can test your product. Crowdfunding validates your idea and gives you a powerful proof of concept.

– Gives you access to further funding. You can unlock further funding from Venture Capitals, Angel Investors or Equity Crowdfunding Campaigns.

– Can be used as a Marketing Tool. As your campaign becomes viral on social media pages you can effortlessly get referral traffic to your website! Thousands of organic visits from unique users and potential funders.

– Helps you minimize Risk. Starting up a business is a very risky and challenging journey. Launching a Crowdfunding campaign hedges the risk and serves a valuable learning experience. 

But in order to reap the benefits, you need to consider five elements that  your campaign should have :

  1. Timing

Early Funding and backing is the key to successful crowdfunding. This simply means that the more backers and funding received in the first few days of a campaign, the more likely it is to succeed. This suggests that designing a campaign to reward the early backer will lead to it being more successful.

  1. Networks

Having  large online social networks will help you achieve success when it comes to crowdfund your idea.   So, you can intentionally use your social media network in order to boost your campaign.

  1. Add a video

Your video is the first thing that people will see when they visit your profile. The first  impression is the most important one. If the visitors of your campaign will get excited about what you are doing or offering, they will probably back your campaign! Check Video editing apps, download the app that meet your needs and create your own video easily.

It doesn’t need to be something very special in order to engage your backers and excite them. Be yourself and explain what you are doing and why people should support you!

​Note: People on the internet do not spend their time reading or watching big videos.

Upload a video that the maximum length is two minutes.

  1. Set the amount of money that you want to raise

Having a realistic target is important. Think about the minimum you need to make your project happen, you can always increase your target once you hit your first goal and start overfunding. Last but not least, remember that backers are afraid of seeing big targets that potentially won’t reach their funding goal.

  1. Reciprocity

In a virtual community, such as Pitchstor, supporting other people’s projects could be a good way to attract support for your own project as well. The positive impact of reciprocity indicates the crowdfunding platforms are virtual communities- where altruistic behavior makes innovators more likely to succeed.

 

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Crowdfunding is not about the money!

Crowdfunding has been growing explosively, with over $2 billion raised via equity and reward crowdfunding in the United States in 2015 alone. But what is the secret sauce that makes crowdfunding unique? Crowdfunding connects creators and entrepreneurs directly with customers and funders, so an open more democratic fundraising is taking place online on a digital platform. Creators can instantly reach out customers and communities to refine ideas and gauge interest. Crowdfunding platforms, such as Pitchstor, are matching innovators with those who need innovation and thus is reshaping which ideas come to market.

So one major thing that crowdfunding does is that serves to validate demand and build communities of support (Build your online community) . One result of raising money over a platform is that it establishes a direct connection between the project creator and the funder. The community that supports the project often has a feeling of ownership for the projects that supports. This ownership is quite positive, as it can lead to communities, creating complimentary products (such as apps that use a new crowdfunded technology) and promotional support.

So, in a way, community creates a sense of obligation to the project owners and as a result they deliver their goal and failure is remarkably rare in crowdfunding. Only around 9%of projects fail to deliver.
But, the dynamic between project creators and backers goes beyond just an obligation. The fact that there are so many backers, means that crowdfunding platforms can create many more kinds of matches between project creators and backers, increasing the diversity of ideas that get funded. Most forms of traditional fundraising rely on personal networks and rules-of-thumb to assess the quality of a founder.
Consumer-oriented platforms are often associated with the “gig” economy – connecting customers to suppliers for short-term contracts. Crowdfunding, however, shows that platforms can also serve as the basis for lasting businesses and important innovations. Moving from an expert-centered process to a platform approach increases diversity, leads to high quality results, and generally results in successful outcomes.

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