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Top 5 Crowdfunding Success Tips

By Adryenn

Top 5 Crowdfunding Tip for Success

Crowdfunding is becoming a global phenomenon, revolutionizing the horizon of all business. People have funded things as varied as video games and businesses to, well… TV SHOWS!

Still… the failure rate is sky high – so, take in every tip from experts that you can.

1. CREATE MOMENTUM

It is proven in the existing data from giant Kickstarter, that the odds for a campaign to be successful in reaching their goal is ten times higher when they have reached about half their goal. Creating momentum brings comfort, because now one wants to go first. And, the more funds you have raised increasing the potential for others to donate.

How do you do that?
Donate yourself. Ask your friends. Pre-launch before you launch and coordinate family and friends. Segment your potential investors, and invite the less likely to invest to your pitch when you already have momentum.

2. AVOID THE MID-CAMPAIGN DEADZONE

So don’t let your campaign drag: 30 -45 days is the sweet spot for most campaigns. Longer, and people forget about you. Shorter, and you can seem rushed or even disorganized. One expert suggested ending your campaign on a weekday evening, as it is known your final push will reach more people surfing the web at that time.

Stagger your updates. The second week donations taper off, so be ready to re-energize with updates and new prizes. Rejuvenate your social media outreach. Create an update video. It is critical you keep separate email lists so you can reach those who have not donated and not annoy those who have!

Communicate well – be clear and sincere -every step of the way.

3. BE CLEAR ON YOUR COSTS

Data shows that the average pledge is $70: you have to determine exactly what funds you need to raise. Do you have quote for the different components? From various suppliers and experts?

T-Shirts are always a welcomed low and mid range gift: so do you know what T-Shirt or Coffee Mug supplier offers you the best deal? Do they include shipping? Do they ship internationally?

Research the details, people don’t like to pay for shipping: you have to be sure to add it to your bottom line.

Be sure you know your base funding goal: what will your TV show cost for the pilot? Make sure your target covers the details, and every dollar after target ensures you will make it better.

4. BE CLEAR ON YOUR VALUE PROPOSITION

Your backers are golden to you: they inherently see the value of your project before it is realized. So determine values for clearly defined tiers. AND – Be exciting! Both in copy and in actual gifts.

You can “stack” rewards. This method is less clear and can lead to confusion – but, an aggregate comparison works well within the potential donors mindset.

Not stacking affords clearer copy and distinct understanding of the coolness of the tiered gift.

Low level Tiers: Don’t clutter up your reward tiers with too many lower end offerings that may distract   backers before they get to the higher end offers. Having more rewards is not better.

The sweetspot is  around $70 -so figure out higher and lower from that median. A great way to have backers move up the donation station is by stretching your rewards, making a $300 reward a better and better reward for them. Sell out a tier? Make a $305 Special level to keep them coming! Be sure to have the stretch rewards already in mind, and offer them only at the higher goals.

Be sure to create cool gifts with cool graphics to keep everyone stimulated.

You can add additional tiers at any time: as in any sale – it is easier to upsell once there is excitement.

5. AH, THE VIDEO

This is the major sales piece of your project.

Make it cool. Make it sweet. Make it silly. Make it your voice of the project.

Keep it under 3 minutes.

Pay Attention to your project: keep it vibrant, exciting, and on point. Start strong, motor through the dead zone, and end strong. People are more and more savvy about crowdfunding and as eager as they are now to be a part of something and help determine its success and direction, so too are they more savvy about expectations.

Create inducements for participation that off the chart cool.

And then – Deliver.

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1 Comment

  1. chynna s

    I hope people don’t underestimate the power of the video when it comes to crowdfunding websites. We took this up in an events management class for an event that needed to raise money for charity, and we scrolled through dozens of Kickstarters and Pozibles to see what was effective and what wasn’t, and what was common for the former was definitely a good video. Inducing people to participate is also a good way of convincing them to shell out cash for your project! I like the ones that give out incentives and have “levels” depending on your donation, because competitive people would definitely want to one-up others and go for a higher level.

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