Crack the Crowdfunding Code
As an inventor, you may or may not have already encountered the term “crowdfunding.” If you haven’t dove into the world of crowdfunding or crowdsourcing yet, now is a good time to start. Other than being a great buzzword that makes you sound very informed about the World Wide Web, crowdfunding is an extremely valuable tool that can help you take your invention to the next step. It’s typically done through an online campaign where people can contribute money to a product, project or invention in order to help see it through to the end of production. There have been successful crowdfunding campaigns for all kinds of products in all stages of development.
However, some campaigns are much more successful than others.
Crowdfunding can reap a lot of rewards for you and your product, but it’s a serious investment of time and energy. While there is no perfect formula to follow for a foolproof crowdfunding campaign, there are a few tips you can implement to get the most out of your efforts.
Make Smart, Realistic Decisions
It can be tempting to want to go big or go home on a crowdfunding campaign, but that can come with a lot of risks. You may remember a crowdfunding disaster or two making news headlines – you don’t want that to be you. Have a Plan B, Plan C and Plan D for everything you want to try to do with the campaign whenever possible, and keep Plan A as realistic as possible.
Remember – consumers will see right through a campaign that’s looking to make more money than what they need. The point of a crowdfunding campaign isn’t to line anyone’s pockets; they’re to help products get to the next points of production so consumers can enjoy them.
Choose Your Platform Wisely
There are a few leaders in the crowdfunding world that can help host your campaign. You’ve probably heard of Kickstarter – they boast themselves as the world’s largest funding platform for creative projects. Indiegogo is another popular crowdfunding option. While Kickstarter and Indiegogo function similarly, they have several differences in their rules and regulations. For example, Kickstarter requires all projects to have working prototypes while Indiegogo is much more flexible with the types of projects they accept. Indiegogo allows inventors to collect the funds from their campaign as they go, while Kickstarter requires campaigns to meet their funding goals before they release any of the money raised.
Do your research on these platforms or any other platform you may be interested in using to determine which one works best for your product and your situation.
Have a Killer Video
It’s widely recognized that crowdfunding campaigns rely heavily on the video that accompanies the campaign itself. Choosing not to make a video for your campaign, or using a low-quality, uninformative, uninteresting video can result in a very low return-on-investment when it comes to your campaign. Your video should tell the story of your product and how it relates to the lives of consumers while keeping their attention and looking great. If you’re not familiar with how to make high quality videos, reach out to a video production company or even a product innovation company like us at Source Direct, Inc. We have the skills and knowledge to set you up with a video that looks, sounds and feels professional.
A good crowdfunding video can also be used on social media, in traditional media campaigns, shown to potential customers and kept as a resource for future needs. It’s not only an investment in your campaign, but it’s also an investment in your product’s overall marketing.
Offer Up Rewards That You Would Want to Receive
It’s easy to think that people will be willing to donate money to your campaign solely because you have a great idea. Some people might even be willing to donate to your campaign just to support you. However, it’s important to be realistic. The best crowdfunding campaigns are the ones that offer something great for their backers in return. While a nice thank you note or a social media shout-out is appreciated, you should be rewarding your supporters, especially those who give a serious amount of money, with real rewards. The best campaigns give their backers their product, emulating a true buyer-seller relationship. This is going to encourage more people to back your campaign because they have something they’re going to get out of it.
If you’re not sure what to give your supporters, browse other crowdfunding campaigns for inspiration. At the end of the day, it’s like the golden rule. Give unto others what you would want to receive.
Research shows that 78% of crowdfunding campaigns meet their goal. While these are good odds, it still leaves almost a quarter of crowdfunding campaigns that didn’t raise enough funds. If your first crowdfunding campaign goes wrong, don’t be afraid to assess the campaign, make adjustments and try again. Seek the help of experts like us at Source Direct, Inc. or other inventors who have completed successful crowdfunding campaigns. Even reading blog posts like this one across the Internet will help you see things in a new perspective and brainstorm new strategies to reach success.
As they say, it’s not over until it’s over. Don’t give up!
Want help with your crowdfunding for your big idea? If you feel inspired to move forward with your invention, feel free to give us a call at 888-373-3876 so we can talk about how Source Direct, Inc. can help you!
Libby Jourdan is the social media expert and writer for Source Direct, Inc., an invention company based in Oldsmar, Fl. If you have any additional invention tips, comments or want to get started with an idea, feel free to email her at firstname.lastname@example.org. If you absolutely dread using email, you can comment below!