21% of all crowd funding campaigns don’t raise a single cent. Many of them are great concepts, and some even well articulated. But even the best ideas get no traction if the strategy behind the crowd funding campaign is not well thought out, planned and implemented. And of those that do get momentum, the average raise for crowd funding campaigns worldwide is less than $10k, with their potential being capped by a lack of work done in the prelaunch phase. Rather than waiting until your campaign is underway, it is best to plan beforehand and then execute the plan once your campaign is live.
Crowd Funding is not a new concept, and given that it has been the fastest-growing form of e-commerce on the planet for quite a while now, there are many examples of success, and from which proven ingredients for achieving your funding target can be gleaned. In preparing for a campaign, research what has worked for others. Specifically, look for projects that originate from the same sector (e.g. if your project is about building a bike, find projects that have also raised money to build bikes – successful campaigns have been run in almost every category). Look at the campaign description used in successful campaigns, their rewards, their video, and the general layout of their campaign. Take the common threads and use them in your campaign. You don’t need to reinvent the wheel – Success is a well worn path that has already been defined for you.
Campaigns with a video more than double their chances of success. Make sure you shoot a video for your campaign. Keep it short and sharp, remembering that most people stay engaged for just 42 seconds. Tell the viewer about you, your project, what you are raising money for, and let them know how they can help you. Get to the point early. Grab their attention quickly, and keep it throughout your video (and that can be a challenge!). Show your sincerity and personality, and have fun with it.
Cool, sought-after rewards can make or break a campaign. Make them creative, exciting and good value. If you can, get some rewards from your community before your campaign and offer those in exchange for promoting them as part of your campaign (e.g. If you have a friend who offers jet ski tours, ask for half a dozen tours for free that you can offer on your campaign, and mention them in your campaign description as well as your campaign promotion). Use 4 – 6 reward tiers, and always have a stretch-reward, one that offers a unique reward for a really large pledge. Keep in mind, rewards do not need to cost you anything – experiences, naming rights, and public recognition all make for great rewards that cost you nothing.
You want to make sure your campaign looks good, from the project badge (the picture people will see on the Featured Projects page) right through to the campaign itself. Make sure you incorporate great images, whether they be photos or artwork. Even catchy logos can work well here. Sites like www.fiverr.com can develop some really cool artwork for a ridiculously cheap price, and this can help you to stand out, drawing people to your project over others.
At the same time as building your campaign and your collateral to look, feel and sound right, as well as to be engaging enough to people that are drawn to your campaign, you need to be working on building your crowd. This is perhaps the most important ingredient in achieving crowd funding success. The money will always come after you build and connect with your community. Without building and connecting with your community, it is like trying to sell Amway on the street corner. You need to have supporters primed and ready to be your early adopters. Crowd Funding is a numbers game. In our previous blog we outline the chances of achieving crowd funding success given the amount of support you have early in your campaign. A good campaign converts just 4 – 5% of the traffic that comes through to the site. Based on these figures, if you want to raise $10,000 with the average pledge being $50, you need to get your message out to 4,000 – 5,000 people. If your crowd is limited to just 400 friends of Facebook, you need to build that before you go live, or the odds are stacked against you achieving your target.
One of the ways of getting support is to “influence the influencer” – that is, to have well connected people speaking out on your behalf, promoting your campaign to their followers and helping spread the word (and, in the process, almost validating your campaign for you). Find well connected people amongst your friends and your circles (they don’t need to be Hollywood A-listers, just well connected folk), and ask them to send out a tweet or blog-piece for you once a week during your campaign. If you write it for them, you make it easier for them to promote you, and you retain control of the message.
And once you have prepared, only then will you be ready to put the pedal to the metal and drive your crowd funding campaign.