A crowdfunding campaign is launched to create awareness about a company, a social cause or a new business project or service and raise funds through crowdfunding. Before we discuss elaborately about setting up a crowdfunding campaign, let us know what is crowdfunding all about.
Entrepreneurs who require to raise an amount of capital to start or expand their business operations can let a crowd of people provide funds to meet their requirement. Crowdfunding is the newest, easiest and the popular source of raising funds over the internet for entrepreneurs and small businesses. Two things that contribute towards achieving the funding goal are: an effective campaign and the extent of promotion on social media.
A campaign needs to be carried out in an organized manner and requires analysis on the following:
- Amount of money to be raised
- Audience to be targeted
- Duration of the campaign
- Place to set up the campaign – Company’s website or Crowdfunding platform
If you intend to set up a crowdfunding campaign for your idea, you can run your campaign on a crowdfunding platform like Payable. Submit an idea and you can start your campaign right away.
A campaign which is well-planned before its actual launch is a successful campaign
Crowdfunding may be an easy way to raise funds, but setting up a crowdfunding campaign and running it needs a lot of time and hard work. Start building your online presence on social networking sites like Facebook and Twitter before launching the campaign. Crowdfunding does not work for project creators who believe that it is just enough to launch a campaign and funding will flow in automatically. A proper planning ahead of the launch is recommended.
Set a funding goal which is realistic
When you estimate an amount to be collected, there is a reason behind collecting the said amount. Set a funding goal that is easy to achieve to get more supporters. An achievable target can get you early funding say within two to three days and go ahead to raise more than 100% of the target amount.
If you are raising money through a crowdfunding platform, you will have to pay a fee for using their service and a percentage when the funding goal is met. Also remember that you need to acknowledge your backers with perks and rewards. If you are rewarding them with digital perks then they may not be included to ascertain the amount. Calculate the right amount of money you need to raise so that you may not displease your backers who have contributed their money and given their support.
Well-defined target audience for the campaign
It is essential to find and build an audience base before you launch the campaign. Your social media accounts, e-mail list or phone list can help you get a list of people whom you already know. The project creator need not be a social networker but can have a team of people to create a good number of supporters on social networks. You cannot expect that all those people who came across your campaign will pledge or invest in your project. So find your target audience on Facebook, Twitter, popular blogs and forums. Engage in conversation with them prior to launching your campaign.
The length of your campaign
How long you intend to hold your campaign is also important. A longer duration may not help you collect more money because the duration is long. You need to decide the ideal time to hold the campaign because people won’t be online on a weekend, summer vacation or christmas season. Try to start and finish your campaign during a time period when people tend to spend more time online and contribute towards a project.
Address the concerns of a backer and establish trust
Some of the ways to build trust among backers is utilizing your own personal reputation or associating with an established institution. A majority of backers doubt on the competence level and think that the person seeking help might run away with the money and their contribution may go waste. Add your photograph and reveal your identity with a video, tell more about yourself to convince your backers.
Add and Share updates with supporters
As the project creator, keep your supporters updated with information relevant your campaign from the launch till the end of the campaign. When you achieve a milestone let your backers know about it. Also add updates using video and photos to keep your backers engaged along the campaign duration.
Crowdfunding approach to raise funds helps your project to get an exposure among many people. You may launch a campaign as a group or as an individual. A campaign becomes successful only when it is well planned ahead and takes into consideration all the relevant things that can work for a project.