23 Feb How to achieve 5,000% of your crowdfunding goal
Crowdfunding is well established as a popular way for early-stage businesses to generate capital. It puts companies on the map, gives them a platform to get noticed by consumers and partners, whilst fulfilling its main purpose of generating funds.
Over the past six months Honey has created several successful crowdfunding campaigns, most recently:
We’ve developed a tried and tested methodology supported by some tips and tricks that boost our client’s chances of exceeding their goal by up to 5,000%. Here are our pieces of advice that any entrepreneur who is about to embark on a crowdfunding campaign should consider.
Design a product which is going to excite people
This may seem obvious, but there are countless products on crowdfunding sites which are either too obscure and unnecessary for everyday life or a copycat of another product but at a lower cost and undoubtedly of lesser quality. Companies need to think long and hard about which product to crowdfund for and plan accordingly.
Be sure your product is desirable by doing market research
If the reception is negative, then move on to another project. If it’s positive, then get crowdfunding.
Create compelling imagery and videos
Capture high-quality, professional pictures and videos for your campaign page. These must show off the features and benefits of the product in an interesting way. Many potential backers will skim read the copy of the campaign and focus most of their attention on the product photos, so a high standard of imagery is essential.
Make the most of social media
Social media is responsible for a huge amount of investment on the back of our campaigns. We used Facebook ads, which has been extremely successful as many people have clicked through and backed the campaign. Although this is an initial cost to the business there’s no way we would generate as much investment without it.
Update your campaign regularly
Backers want to feel like a part of the campaign, so make sure they are updated with exciting developments. Stories such as hitting an initial target, products being shipped or new product features are all really interesting, so make sure you share them.
Interact with other campaigns
If another campaign is relevant to your product or you are impressed by its progress, interact with the company and discuss the idea of promoting each other’s products either on social or as a campaign update. We did this with another tech business who were funding on Indiegogo and it worked extremely well.
Set up a referral campaign
Create a referral programme so that backers are encouraged to refer friends and family to the campaign in return for free gifts. This is a great way to spread the word of the project and achieve more funding.
It takes a lot of planning to create a successful crowdfunding campaign, so it should not be entered into lightly, but it can be an excellent opportunity to promote the company and raise funds.
We are currently helping Roome, an innovative Smart Lamp, with their project. Check the campaign out here.