If you want to make a success of getting some money – either for a charity, project or to set up a new business – you could probably do with some tips for crowd funding. Crowd funding is about using the power of the Internet to get people – friends, family, colleagues, contacts and total strangers, anywhere in the world – to invest in your scheme. With the fact that many of these investors get nothing or very little in return (unlike programs like Kickstarter, which may offer big rewards and is used for business ideas), these tips for crowd funding will help you attract people who want to have input into a project they like, and if they get something back, well that’s a bonus.
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1. Set a Proper Goal
We’d all like to get as much money as possible for our project. Unfortunately, $25,000 isn’t always in our futures. Carefully think about what you need to get your project off the ground at the bare minimum. This is one of those tips for crowd funding which recommends you calm your initial enthusiasm. Learn to differentiate between what you want and what you need.
2. Perks
Perks are essential for successful crowd funding campaigns. Most people donate because they want something in return. Movies often offer producer credits, or even being an extra in the production. Those are two things people actually want. Do this. Don’t fill up the lower perks with trash like adding someone to a mailing list. This isn’t a perk. Offer them something and follow through on your promise.
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3. Funding Options
You have two options for funding. There’s flexible funding and fixed funding. The latter requires you to get all the money you asked for or you get nothing. Flexible funding enables you to take what you get. Only use flexible funding if you can begin your project on less money than you originally asked for. One of your crowd funding strategies shouldn’t be disappointing your donors!
4. Video Pitches
Videos always allow you to gain more money. On average, projects with videos tend to raise 114 per cent more than those without. Firstly, it demonstrates you’re a real person and not some scammer. It’s personable and people can identify with your project and what you’re trying to achieve. The human effect is highly influential.
To make a good video pitch, you need to make it about three minutes long. Be transparent and speak from the heart. This isn’t the time to mess around with your fancy editing skills. Reveal everything and tell people about your project. It doesn’t have to be an award-winning production. Just make sure it tells potential donors everything they need to know.
5. Timing
Here’s one of those essential tips for crowd funding which can stop your campaign from failing. Never leave your campaign going for too long. Longer campaigns have no urgency and they tend to run out of steam very quickly. People are more likely to bookmark the page with the view to making a decision later. They never do.
Shorter campaigns initiate a sense of urgency and make it more likely to receive full funding. The ideal campaign length is between 30 and 45 days. Opt for 45 days if you’re asking for a larger amount of money.
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6. Capitalize
Your crowd funding strategies should always include a schedule for adding to your campaign. You should aim to do something new each week. Add anything you want. Some people suggest adding bonus perks, but this usually means you’re holding back and not taking full advantage of your campaign time. Use something simple like an added thank you video.
Tell people what the money raised so far has done for you. If people can see the good they’re doing, they’re more likely to continue donating. Humans like to see progress. Vague promises and rough approximations are the realm of politicians, not successful crowd funders.
7. Referral Contest
All successful crowd funding campaigns urge donors and visitors to share the page with their friends. Take things one step further by operating a referral contest. The referral contest is a game where the person who refers the most donors to you wins a special prize/perk.
Never make the prize money or a mystery prize. Make it something special which they can cherish. For example, if you were running a baking business, you could give the lucky winner a free lesson in your new store.
If you have a project and are thinking about finding investors, these tips for crowd funding should most definitely be used. We’d love to hear of your successful crowd funding campaigns. Or maybe you have donated to one? Please do tell.
