Helpful Tips for Effective Crowdfunding
Crowdfunding is a way to raise awareness and funds in a collectivistic way. No matter your need for the funding, there is a platform site that will cater to what you are looking for. Crowdfunding brings all the different networking sites together to work for your benefit. Essentially, you set up a site for your cause, then launch your initiative using Facebook, or Twitter, or all of the popular networking sites at once. Then donors who support your cause donate whatever amount they choose, and so on. Here are a few tips to kick off your own crowdfunding initiative.
Choose what type of funding you need
There are two main types of crowdfunding: donation-based funding and investment type crowdfunding. A donation based model is usually more for personal uses. You set out to achieve a personal goal, network for support and see what happens. When it comes to the investment type model, you would offer the donor a share of your business for their investment. This type of crowdfunding will build equity for the person donating.
Keep your campaign short and to the point
You don’t want a long enough campaign that people have time to lose interest. Keep it short and simple. Thirty days or less is usually a good standard. Statistics show that projects that end up going on longer than thirty days have a lower success rate than the shorter projects. Putting a shorter time limit on the project sets a tone of urgency and demand. People will want to be involved more because the opportunity will be gone soon. It’s in our nature to not want to miss out on anything. Also, don’t be afraid to post a budget along with your need for funds. Posting your budget shows that you are transparent and have the initiative to meticulously plan ahead.
Crowdfunding rewards pregaming
The day you open your crowdfunding project shouldn’t be when you plan on beginning the search for donors. You need to put in work before your launch date. You need to know what networking sites you plan on using. The most important issue is that you will need to have been a presence on Twitter, Facebook, Instagram, or Tumblr for at least a few years. You need experience and a public base to build your donor pool from. Crowdfunding is a beautiful thing, but you have to know how to branch out and be social. It is absolutely vital to the success of any sort of entrepreneurial adventure. If you learn people, you will learn how to become a force when building support for any purpose. Putting in an effort will never cease to produce results for your cause.