Preparing for a Successful Project on a Crowdfunding Website
In Part 1 of the Ultimate Guide to Crowdfunding we looked at what crowdfunding is and why it is important. The rest of this series will focus on the different steps that should be taken to create and run a successful crowdfunding campaign that attracts people that want to support it and also achieves the targets that it sets for itself on the crowdfunding website. Here, we shall examine how to prepare for the campaign to give it the greatest chances of success overall. In his guide to crowdfunding success, Alvaris Falcon argues that:
“It is best to make your plan as detailed as possible”.
In doing this you can make sure that you cover all of the bases in advance and you are prepared for different crowdfunding eventualities that may occur. You will have a backup plan in case things do not turn out the way that you hoped, so that you can continue to promote your campaign successfully to raise the funds that you need. There are a number of different elements to planning a successful project on a crowdfunding website, according to Shannon Whitehead. While Whitehead writes specifically of Kickstarter, many of the recommendations transfer to the other crowdfunding websites that are out there.
How to prepare for a successful project on a crowdfunding website. IntelligenthqThe first is to identify the right website for your particular project or activity or reason that you are trying to raise funds. Different crowdfunding websites are used for different purposes. For example, Kickstarter only allows projects to be posted, not whole businesses that just generally need to raise money, and it does not allow causes or charities to be posted. Meanwhile, other websites are specific to causes and charities. Selecting the right website for the campaign is a good start, and then posting the campaign into the right category from the options on that website is the next step.
Shannon Whitehead also suggests making sure that you follow the guidelines of the specific website, and this is really common sense. If you do not, your project or activity could get removed from the website, wasting your time and anyone else’s that was involved with it. Don’t assume the guidelines or rules for one website will be the same as another. Each crowdfunding site will have its own rules that you will need to follow.
A very important step in doing crowdfunding well and preparing effectively for a campaign is defining the goals that you hope to achieve carefully. On some websites you will not get any money at all if you do not achieve the target. On others, you pay a heavy financial penalty if you do not achieve the target. This should motivate you to make the target realistic, and identify the ways in which you will deliver this target. You need to consider the timeline for raising the money, which will usually be defined in number of days, as well as the target figure. Just because another project like yours managed to raise £1 million doesn’t mean you will. Make your target realistic.
Another step in preparing for a crowdfunding campaign is understanding who the people are who will be most likely to fund your project and how you can access them. You’ll need to be able to market your campaign to them in such a way that they are motivated to fund you, so clearly knowing who they are before you start is very important. Knowing the social media websites that they use, and their likely demographics to be able to target them will enable you to be able to promote your campaign more effectively to them. You may want to think up some attention grabbing headlines for posts that you will make about your crowdfunding project that will attract people to look closer. You can try looking at other previously successful campaigns in your niche to be able to achieve this. You’ll also want to see how you can make your campaign visually appealing by using video, photographs and other tools to make your campaign stand out.
A final step that you will need to take to prepare your campaign successfully is to determine the “reward” or “perk” structure that you will offer to funders. This is extremely important, and a major area of consideration, and this will be the subject of Part 3 of this series.
Ultimate Guide to Crowdfunding (part 3)
Paula Newton is a business writer, editor and management consultant with extensive experience writing and consulting for both start-ups and long established companies. She has ten years management and leadership experience gained at BSkyB in London and Viva Travel Guides in Quito, Ecuador, giving her a depth of insight into innovation in international business. With an MBA from the University of Hull and many years of experience running her own business consultancy, Paula’s background allows her to connect with a diverse range of clients, including cutting edge technology and web-based start-ups but also multinationals in need of assistance. Paula has played a defining role in shaping organizational strategy for a wide range of different organizations, including for-profit, NGOs and charities. Paula has also served on the Board of Directors for the South American Explorers Club in Quito, Ecuador.
