Starting a new venture or trying to raise cash for a good cause? Crowdfunding could be your answer. Although crowd funding is not a new concept, the age of digital communications have made it a household word.
According to Wikipedia, Crowdfunding has grown to over $5 billion worldwide. In a crowd funding situation, your idea/project needs a group to support it and a platform to put the two together. Here is where your social media comes in –
10 Top Tips (read on) –
the practice of funding a project or venture by raising many small amounts of money from a large number of people, typically via the Internet. (Wikipedia)
10 Quick Tips to Get Your CROWDFUNDING off to the right start –
1. Decide What Type of Crowdfunding You Want to Do
Rewards based crowdfunding involves preselling a product or service to launch a business. Equity crowd funding lets your backers receive shares of your company.
2. Do the Research
Find similar crowd funded projects online and see what worked well for them and what didn’t.
3. Pick the Right Site
There are hundreds of Crowdfunding sites, some sites let you keep the funds you raised even if you didn’t reach your goal. Some sites cater to specific project types and industries. Kickstarter is a popular site which has had many successful campaigns. For specific causes such as charity crowd funding you may what to use a site like gofundme.com or giveforward.com.
4. Plan A Budget
Projects always seem to run over budget so carefully consider all expenses you may incur and realize that funds earned may be taxable as income so save some money for Uncle Sam.
5. Know Your Crowd
Who are you trying to attract as potential money backers ? You may need to target specific potential markets depending on how narrow or broad the focus of your project is. If you know who your project will appeal to, do the research on their demographics – where do they use social media the most and what purpose are they using social media for.
6. Work on Your Presentation
Gather materials you will need to present to fans on social media. Short videos are the best way to quickly capture a fans attention.
7. Have an On-Line Elevator Speech but Shorter
If your elevator speech is 2 minutes, then your crowding funding pitch should be 30 seconds or less. Research shows that people are willing to listen for up to 30 seconds or less before they go onto the next thing. Focus on key elements or ideas to present in those first 30 seconds. Try to provide a clear understanding of what your crowd funding project hopes to accomplish.
8. Know What You Want From Your Backers
Before starting your crowd funding campaign, realize that some backers may want to contribute to your project in other ways besides money. Know what you are willing to give up control over or collaborate with potential backers.
9. Reward Backers – the Age Old Question “What’s in it for me ?”
Take a look at successful multimillion dollar campaigns and see what kind of rewards and incentives those campaigns offered to backers.
10. Don’t Forget Your Family and Friends
The potential of family and friends and their social media networks is often overlooked by people. A wealth of backers to get your campaign started and be a positive impact can be found most often close to home.