WITH THE INNOVATION BOOM OF THE PAST FEW YEARS, CROWDFUNDING HAS SET OFF A NEW WAVE OF BUSINESSES WITH GREAT IDEAS AND SHORT POCKETS.
Crowdfunding is a very handy strategy tool for when you need founding for a new product idea. In Taiwan, the most used platforms are zeczec, webackers or flyingV. While in China Taobao crowdfunding , Jingdong, and Demo Hour.
Over the years there has been a boom with so many new products and Startups needing funding in the market.
In this article, we will talk about Kickstarter and Indiegogo, one of the most well-known and reliable crowdfunding platforms in the world. Crowdfunding is not only a commercial approach to mass production of products, but also seen by many companies as a marketing tool to open up the online market; However, before operating a new business model, considerable preparation and work is required. A meticulous plan.
We have compiled a list of important points for planning fundraising and have a successful crowdfunding campaign.
1. A TOUCHING PRODUCT STORY
The beauty of supporting a project is to offer people solutions or “assistance” with products that can facilitate their life. So the ability to tell stories is particularly important. Preparing a fascinating story that can resonate with the public and deepen the expectation and recognition of the product. It is recommended to hire a professional writer to make sure your product story is very well told. A fascinating story is definitely a good foundation for a successful brand.
2. EYE-CATCHING IMAGE FILM
Videos are the best tool for presenting your story. Shooting a good promotional video doesn’t have to be a big deal; from a viewer’s point of view, it doesn't have to be a Hollywood production with a lot of budget, but a well told story. Remember: An image says more than a thousand words. We all know that the majority of the Startups that will be fundraising will be smaller companies. Therefore, the most important thing is that the film can convey a clear vein, and can show the highlights of the product in it, so that the viewer can keep the audience’s eyes without boring or leaving a bad impression. It is also recommended that the length of the video should not be too long. Try to limit the video time for at most in 3 minutes.
3. SET FUNDRAISING GOALS
The next step is to set up an actual fundraising target. How to set the target amount depends on the project purpose and the product category. However, in most cases, the basic cost of planning a fundraising activity includes :
- Product Development Cost;
- Fundraising Amount Rewards(Can be a thank you, pre-order, limited edition products, all kinds of exclusive rewards);
- Material Production Cost;
- Platform Operation;
- PR & Marketing;
- Legal/Personnel Expenditure.
It is worth noting that in most of the crowdfunding activities, only 2% of businesses made more than 100,000 US dollars. Setting a too high target will not only raise the threshold for the people to reach the standard, but sometimes even cause the counter-effect of sales promotion. For more details, please refer to this article .
4. DEVELOP A SCHEDULE
According to the project to be executed, including the product prototype development to the finished product release, and finally the development plan after the fundraising is completed. all the steps are made into detailed time schedules, in which the work team has to communicate well with the public to explain the progress of the project. Remember: Methodology.
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5. ESTABLISH SOCIAL MEDIA CHANNELS
Make good use of Facebook, Twitter and Instagram to maintain the image and the bond with your sponsors. It is recommended to use well made product pictures, video or GIFs to show how the product should be used in real life. According to statistics, narrative of texts on feed, and images has the public’s preference for visuals increased by 60%. They are also able to create good community interaction.
6. PREPARE AN INFLUENCER LIST
Find people who are influential in the relevant field according to your product positioning, try to make them willing to promote your product, working with similar topics on Instagram or other social platforms to increase exposure. Refer to the platform and application methods described in this article to attract more people to join the journey!
7. MEDIA RELEASE
During the crowdfunding campaign, another useful way of communication is to contact media channels for exposure. You can also plan a complete media layout for your campaign through a dedicated Marketing Agency. However, bear in mind that the news conveyed through media reports will get you a deeper impression by the public and will be one of the most important factors related to the success of fundraising. Therefore, do not only aim to get rapid exposure and popularity to find yourself ended up spreading exaggerated content, messing with your channels causing an irreparable failure.
8. TIMELY UPDATE ACTIVITY STATUS
The team can use services such as MailChimp, Campaign Monitor or MailerLite to send an update status of the campaign to your sponsors regularly, and even keep track of funds related data to improve users interest in the development direction. Based on this, we will adjust the future target strategy. In addition, in the process of fundraising, you can use tools to help you grow and build better relationships with your backers, such as Crowdox, BackerKit. Crowdox is also a very convenient software tool when additional sales are launched at next stages.
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We believe that excellent products with great preparation and stable operation strategies can surely win a beautiful story, even in this crowded sea of sharks. We hope this list will help you and your team to develop a superb crowdfunding campaign in the future, helping you raise a maximized amount of funding. Just don’t forget about us when splitting the equity!
Tenten.co is a strategic digital agency for growth and digital transformation. Tenten.co是一家專注於協助企業與SMB促進增長和數字轉型的諮詢機構。
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