Small business owners generally use crowdfunding in order to raise capital for business ventures or for startup projects. Crowdfunding is basically a good alternative to bank loans that are not easily available, not to mention for credit lines that are fairly hard to come by. If you too are considering raising monetary contributions from a large number of people, then you should spend a lot of time to plan how you will market your campaign. If you want your campaign to be successful, you should reach out to as many potential backers as possible. Crowdfunding promotion implies a lot of work across many channels, so your efforts have to be coordinated at all times. In order to achieve your goal, you should use the following tips and strategies.
About thirty percent of initial donations will come from people that you already know. Before launching your crowdfunding campaign, it is essential to have a strong network. Your goal is to have at least 2,000 contacts before you even consider launching your funding campaign. When looking through your email contacts, make separate lists for friends, family, acquaintances and business associates. It is needless to say that each group will require different messaging. People with whom you have not communicated for some time will need an extensive introduction to your initiative. Equally important is to look over your contacts list and identify connectors and promoters in your network who will help spread the word.
Start a blog
Successful entrepreneurs know how to leverage other people’s money to get them where they want them to be. This phase should be started at least 3 or 4 months before launching your funding campaign. What you should do is write down who your ideal customer is and who your ideal funder is. The next step implies creating an online profile of each persona’s typical online activities. A good idea is to start a blog, a professional one, not a free website. You should do this in order to make people trust you enough to give you their money. Invest a part of your money in a domain, namely web hosting or even a custom web design
Social media is probably the most important component of a crowdfunding campaign. If you want to attract people to your campaign you should become part of the social media community. If you are not already part of the social media community, you will be perceived as insincere and no one will support you. First you have to give in order to get, so if you want to promote your campaign, you should share relevant content that is not your own. For every four updates you post, only one of them should directly promote your product or service.
A promotional video
Video is by far a compelling selling tool, so make sure to tell your campaign story on camera and include it on your crowdfunding platform. Your video should be two minutes, even less, and it should tell a story. What is important to remember is that you are selling not only your product or service, but also yourself. You can use the direct appeal in email messaging.