If you want to run a successful crowdfunding campaign, planning and choosing the right platform is one thing and presenting your venture in the best possible light is another. We are all familiar with the American Business reality television series–Shark Tank. The show features a panel of investors famously known as ‘sharks’ who decide to invest in various ventures but often find weaknesses and faults in the products, business models, and valuation of entrepreneurs’ companies.
Hence, showcasing the potential of your business in the best possible light is the prerequisite. And for this, you need a strategy to get maximum funds and boost your business growth.
Follow the trail to know more:
1. Telling a Compelling Story
The first and most important tip for having a successful crowdfunding campaign is framing the best perspective. Choosing an engaging and non-technical approach will make your crowdfunding campaign appealing and friendly to the donors. An easy and accessible approach and language would grant you results from non-experts. And having the right story in place would help donors visualize your product and services, making them invest in the result and outcome.
If the story is rightly oriented and perfectly comprehended, visitors to this campaign will be compelled and confident about investing in you. One thing to remember after the campaign is your story should not just end here but, you should receive updates about the outcomes on social media–during and after the campaign. The visibility and transparency help prospective donors have confidence in your campaign and give the existing donors a feel-good rush making them donate again.
2. Choose the Right Campaign Length and Goal
After having a compelling campaign narrative, some statistics can help put the approach in a suitable manner. A clear idea of your funding goal and time frame will help boost your campaign and achieve the target. Statistically speaking, projects at the higher end of more than $6000 for 30 days are likely to fail because of unrealistic funding expectations. Likely increasing the time duration of your campaign will also lose the interest of your donors. Hence, the data suggest that the sweet spot for your campaign is about $3000 for 30 days.
3. Leveraging Personal Network
Research studies state that businesses should aim to raise at least 30 percent of their funding goals from closely associated networks. An initial threshold will help potential donors believe that the project will succeed. And apart from your close associations, having a social media presence and a wide virtual network can reap the benefits of greater success for crowdfunding campaigns.
But businesses have to remember that they can’t rely on public posts alone. Reaching out personally and sending direct messages on Facebook, Twitter, Snapchat, and LinkedIn can help increase the likelihood of a successful campaign.
4. Taking Advantage of the First Few Days of the Campaign
It is essential to have a kickstart to your crowdfunding campaign. Studies show that raising almost 30 percent of your funding goal in the initial week translates to an 80 percent chance of a successful campaign. And if one raises just 5 percent of the goal in the first week the probabilities drop low to as much as a 50 percent of success rate. Another reason for this success rate is that in the first week there is improved visibility of the campaign can help convert donors.
5. Continuous Promotion of your Project for the Duration of the Campaign
Crowdfunding is not something you initiate and let run on its own. It requires continuous engagement from the owners to make it a successful project.
The way for keeping it engaging is through social media posts and follow-up emails. One can also consider doing a Ask Me Anything on Reddit or sharing press releases with the local media will make the project geographically and culturally specific.
Crowdfunding has never been simple, and the above five rules and tips will surely help make your project a successful one. Last but not least, treat your crowdfunding as a big opportunity and keep it professional to reap the benefits.