Before I take of explaining why this is a great new marketing channel. I thought it would be could to explain to you what crowdfunding exactly is. Shortly said it is a great way to either launch or broaden your business to the next level and get paid for it!
What is crowdfunding
Okay so that’s the short answer, but crowdfunding can actually be viewed as a medium and a fairly new channel to promote your business. It should be viewed as a short campaign that will last about 30 days. Within these 30 days, when done correctly, a lot will happen:
– You will generate hot leads
– Create free publicity
– Collect accurate marketing data and info on people
– Generate a lot of back and front end sale
– Find funding when you can’t get it the normal way.
That’s a lot in thirty days!
Mistakes about crowdfunding
One of the common mistakes people have about crowdfunding is that it is meant for charities and to raise money for good causes. People that have looked superficially into crowdfunding think that it is an easy way to generate free money without strings attached(and don’t get me wrong they don’t have strings in every case) but that’s is not the goal and essence of crowdfunding. It is meant to reach potential new clients and build brand awareness. Money comes on the second place.
How do you use crowdfunding
So we already established that crowdfunding is mostly a marketing tool, but you can use it in various ways:
By creating leads you will increase your contact list, so you will reach more people. You can do this by offering perks like ‘’ You can get my NEW book for free, you only have to pay the shipping fee’’. People who want the book have to give you their contact information and they will get familiar with you and your business. This is an almost effortless way to generate potential new clients and promote your business.
Selling and Pre-selling
You can do this if you have an existing product. OTO is the key term when it comes to selling products quickly. It stands for One Time Offering. Make sure that your discount is good, so start from 50% and up. If you want to pre-sale something with crowdfunding you need credibility as there isn’t a product to offer yet. So you will need the recommendation of an expert in your product linked field.
It can also serve as a valuable way to gain consumer data and information. Pitch your top ideas on your chosen platform and wait for the response. Invite people to not just pick their favorite idea but also comment why the like and dislike certain ideas.
Create value by helping another person. You pick a charity to support and afterwards you will contact people or companies, that fall within your target audience. Ask them to make a donation and offer your companies services partially for free to them. This will generate public awareness for your company and it will most likely earn you work.
So what do you have to do to start your own crowdfunding project
Well it all starts with a good platform, like Kickstarter. Secondly you won’t be successful if you do not understand the medium, so participate. Look at projects of other people and contribute to good projects. Then you start to look behind the screens and see how it works. After that you’ll have to ask yourself these 3 questions:
1. Why am I making my project
2. Why does it benefit the world
3. Why does it benefit my company besides money
The most intense part of crowdfunding is your thirty day campaign. This should be prepared in detail before you launch your project online. Make a time planning and create your images, posts and text as far ahead as possible. This will decrease mistakes and gives you the possibility to react fast as well as to update and adapt your campaign daily if needed. It is also important to write a script outlining your goals, timeframe, strategy etc. If you have a big project, I would advise you to do multiple crowdfunding projects instead of one. After that you can put it on the net! The first 48 hours are crucial to your success. In order to stay on the home page, you need to show the hosting platform that your project has potential, because they receive 9% from the raised amount of money. So make sure that you already have some backers before you launch the project. Nobody wants to be the first and this way your project looks a lot more trustworthy.
Link your project with other channels like your blog, Facebook or LinkedIn. This way you will reach more people and it is easier to stay in touch with your community. Follow the pulse and respond to their comments by altering your project. This is needed to maintain the excitement for thirty days. In the first 5 days you have to post daily and after that 3 á 4 times a week.
Why is it a good marketing tool
Crowdfunding has been around for about 5 years and is still a fairly unknown field. Most people have misconceptions about it and not a lot of people are using it for marketing objectives yet. It is an amazing marketing tool because you can reach a very large audience within the speed of light. You can do research and collect data, promote your company, get funding for your plans, generate leads, create goodwill and sell products. It all depends on the format of your project but, it is all possible with this channel. And the best thing of all? You get paid to do it!
If you want to know more about crowdfunding visit Kickstarter’s webpage: https://www.kickstarter.com/