Looking for some crowdfunding investments to
get your business started or expanded? This type of investing has become a viable
way to collect capital that can be put to good use. As with everything in life,
there is no such thing as a free ride. Here are some tips to consider when
raising money through crowdfunding:
Tip
#1: Show What You're Creating
Since your crowdfunding campaign will no
doubt be launched online, there is no excuse not to include photos and/or
videos of exactly what you plan to sell, make or provide. Even if you've
created the next great "widget", make sure that you have a prototype
that you can show off. Make sure your ideas are protected before you share them
with your potential investors. When those money folks can see something
tangible, they'll be more likely to part with their money.
Tip
#2: Research Your Platform
Among crowdfunding sites, Kickstarter and
Indiegogo are the most popular. These are the ones that most folks will go to
first because they seem to be getting all the good press. Here in Canada,
Kickstarter is getting ready to lower restrictions for more participation. Also
check out Crowdfunder, RocketHub and Quirky. Spend time getting to know these
sites and the community they attract. This research should help you find the
right fit for your campaign.
Tip
#3: Copy From Success
There are many crowdfunding success stories
out there. Guess what? You can borrow from them when it comes to building your
page. See what those campaigns used to attract investors. You can learn a lot
from those investor comments. Was it the video that made the difference? Was it
the pitch? Whatever worked, try to adapt it for your cause.
Tip
#4: Build Up Some Sweet Perks
The benefit of crowdfunding is that there
is no obligation for a return on that investment beyond the perks. To attract
investors, you'll want to offer some goodies. The recent wildly successful
"Veronica Mars Movie" Kickstarter campaign offered walk on parts in
the movie, autographed scripts and interactions with the stars. All of these
perks came at certain levels of investment. In other words, save the good stuff
for the big bucks. Special note: Start the perks at the $25 level. This is the
most common donation and a good way to get things fired up.
Tip
#5: Work Outside the Crowdfunding
Just because you set up a page on
Kickstarter doesn't mean your work is done. You need to get the word out about
what you're trying to accomplish. There are many folks who stop by crowdfunding
sites to see what’s new, however, that's not going to be enough for your needs.
Think of your social media outreach. You should be using Twitter, Facebook and
any other media outlet you can tap into to spread the news about your campaign.
Make it fun and watch the money roll in!
