It’s easier than ever. Raising money, that is.
The advent of the Internet of course brought with it connectivity – to the order of Amazon.com, email, silly cat videos – and for today’s purposes, the ability to pool money. From whoever… wherever.
Yup, we’re talking about crowdfunding!
Today, we’re breaking down what crowdfunding means, whether or not you should crowdfund, and 7 tips for hosting a successful crowdfunding campaign.
One of the hottest new(ish) trends in business, crowdfunding is the practice of gathering contributions from a large pool of people, usually on the Internet.
Crowdfunding is distinct from other fundraising strategies because most of the time, the fundraiser offers gifts – like products, services, or experiences – in exchange for donations.
Crowdfunding campaigns are also often tied to a social good. By participating in the campaign, funders are able to support causes they believe in.
Win-win, if you ask us.
That said, let’s look at the advantages and drawbacks of building a crowdfunding campaign.
With crowdfunding, you can:
- Raise money quickly for a project or cause that might not get funded by a large donor
- Raise money without writing time-consuming grant applications
- Raise awareness about your organization by publicizing the campaign on social media
Yet, there are some drawbacks:
- Setting up a successful campaign takes research and time – both of which cost money and trade off with other projects!
- This strategy works best for companies or products that have a social good component. If that’s not you, that’s fine – but your messaging may not feel as persuasive!
- If you don’t reach your goal and funds are returned, your organization’s reputation might be compromised
Now, given the rough outline of what’s possible with a crowdfunding campaign, consider a project you might fund in this way.
Holding that project in mind, let’s explore our 7 key tips for hosting a successful crowdfunding campaign:
- Create a detailed project proposal to outline the campaign goals, timeline, funding strategy, and marketing strategy. Fail to plan, plan to fail. How will you reach your target audience? Who will help publicize your campaign? How will you engage your donor base after the campaign?
- Select the proper site to host your campaign. Each crowdfunding website offers slightly different features and terms, so do your research. Some places to start: kickstarter.com, www.gofundme.com, www.indiegogo.com, and www.globalgiving.org. You can compare crowdfunding site features at www.crowdsunite.com!
- Line up compelling, relevant rewards for funders. Your gifts are part of the brand experience and help compel people to donate. Choose rewards that are intriguing and valuable, and become part of the person’s life – not the next doodad that’ll get stuffed in the junk drawer.
- Assess if you need to lay groundwork before you launch. For example, if using social media is primary to the success of your campaign, make sure your social media presence is robust before you go live!
- Refine your elevator pitch. Get ultra-clear on what donations will contribute to and why that matters. People love meaning and quantifiable impact. Then, add your elevator pitch to your campaign page!
- Write a rock star campaign page. If there’s one area to nail, it’s the copy, branding, and look and feel of your campaign page! Share who you are, what you do, and why you do it – all from the frame of how your audience relates.
- Engage your donors after the fact. Anyone who puts down his or her credit card cares about your mission. Follow up and loop them into your sales funnels!
Does this get your brain stirring? We hope so. Leave us a comment and let us know how this article inspired you to crowdfund. We want to hear about your goals!