Crowdfunding is a great small business marketing tool that can help you obtain some serious financial help for your newest venture. Sites like Kickstarter and Indiegogo offer small businesses and startups the opportunity to raise money from the public for nearly anything – from your new spring line of dresses to the novel that’s been burning a hole in your desk drawer all these years.
However, for every great project that gets crowdfunded, there are dozens, even hundreds more than don’t get any love at all. The difference between the funded and not-funded is strategic and creative planning, and successful marketing. Here’s how to do it right.
Small business crowdfunding isn’t indefinite. You only have a certain period of time in which to raise the money, and it flies by. Projects that aren’t fully funded by the deadline don’t get funded at all – there is no middle ground. Make sure you’ve dotted your I’s and crossed your T’s before you go live.
Keep Your Costs Clear
The thing about money is that no one ever has enough of it. To get your project funded, you’re going to have to be pretty darn convincing about why people should give you the cash. Break your project down into sections and be completely transparent about how much you need and what it’s going to be used for. Manufacturing prototypes, materials expenses, personnel or advertising – your funders need to know where their money is going.
Spread the Word
It’s easy for a great campaign to get lost in the murk on these huge websites, so you’re going to have to do your own marketing. (Or we can do it for you!) Blow up your Facebook and Twitter feeds, pin it on Pinterest and don’t neglect the power of your own personal network of friends and family (who can spread the word for you). The more people who see your pitch, the more money you’ll raise.
Offer Fabulous Incentives
Money for nothing is a lovely concept, but in reality, people want something, not nothing. So, offer incentives for each donation level. However, keep in mind that you’ll have to deliver what you promise. Make sure your cost balances out so you don’t find that your entire proceeds have gone back to your benefactors.
Mischa Communications has helped many small businesses successfully market their crowdfunding campaigns. So we know what works and, more importantly, what doesn’t. Contact us to find out how we make your crowdfunding dreams a reality.