Crowdfunding means tapping into the generosity of a crowd for money, but also for feedback, and in that respect, the wisdom of experienced backers in a specific category can provide invaluable insights that can truly transform your campaign from a failure to a breakout success. The secret of success in crowdfunding projects is all about having the right supporters and backers. Connecting with backers is valuable for any project, and naturally, it’s incredibly difficult and sometimes impossible to get hold off.
Equity crowdfunding can provide a powerful way to raise your funding by enabling you to take fewer dollars from more investors. Let’s say you’re raising $500,000. At an $10,000 average investment, you’d need up to 50 investors. Though most companies also get commitments in their round sized at $50,000 or $100,000, or more.
In some ways, it can be easier to find many investors at $10,000 than it is to find one or two investors at $200,000 to $500,000. The risk is just that much greater when considering investing that much money.
What entrepreneurs are finding in equity crowdfunding is that there is a new way of fundraising now available where you can spend less time trying to convince one or two single investors over three to six months to invest. Instead, by lowering the minimum investment amount into your funding round down to as little as say $1,000, you lower the risk exposure for any single investor, and entrepreneurs often find it much easier to get the investment and support of many investors online at these amounts.
There’s no doubt that crowdfunding is changing the rules of the game for fundraising, and investing. Don’t expect the growth or innovation to slow down anytime soon.
Tweet Early, Tweet Often
This may sound obvious, but you want to make sure that you’re giving value on your account before you start asking for anything. If your first tweet links back to your campaign page, chances are, you’re doing it wrong! Look for People that Back Crowdfunding Campaigns Regularly.
What is a serial crowdfunding backer, you may ask?
In short, I like to keep up to date with the interesting crowdfunding projects, and when I see one I like, there’s a high likelihood I’m going to back it.
Engage with Twitter Accounts that Focus on Current Crowdfunding Projects
There are so many different Twitter accounts out there that it can sometimes seem like the wild wild west. But how can you identify those with whom it’s worthwhile to build relationships?
One great strategy is to use a tool like buzzsumo to identify influential accounts (known as influencers). In particular, you’re going to want to identify accounts related to :
b) your subject matter
The Role Of Hashtags
When traversing the Twitter landscape, you’re going to want to use appropriate hashtags (#) in your statuses.
Hashtags serve as an easy way to group together statuses on a particular subject. What this means is, even if someone isn’t following your account, if they search for that hashtag, your message will still be seen.
Crowdfunding Tip 1: Pick Your Platform
As you’re getting started with your fundraising and crowdfunding goals, the first place to start is to pick the platform you’ll raise funding on.
Creative projects – Kickstarter and Indiegogo
Crowdlending campaigns or projects – CrowdPress
First Giving Not-for-profit organizations – Fundly
Crowdfunding Tip 2: Pitch and Story
It’s important to remember the context of crowdfunding and fundraising online. You’re vying for a persons attention while they’re online, and they have tons of other distractions and things pulling their attention away from you.
It’s for this reason that your initial pitch and messaging absolutely must grab your funder or investors attention right away and pull them in.
Crowdfunding Tip 3: Focus On What’s In It For Them
It may sound counter-intuitive, but while your goal in crowdfunding is to raise funding for yourself, the more you can focus on what is in it for your backers or investors the more likely you are to create a set of rewards or terms that helps you raise the dollars you’re looking for.
Crowdfunding Tip 4: Supporter Engagement
The most common mistake that first time crowdfunding campaign owners make (in both rewards or equity crowdfunding) is to not adequately engage their first level network of friends, family, and supporters.
Crowdfunding Tip 5: The Power of Notable Investors
You might believe that what you’re doing is the coolest things since sliced bread, but regardless of how great it is, there is one sure way to get other peoples attention who have never heard of you or your cool gadget or project before – and that is to get people or organizations involved with your project or business who people already know and have positive associations with.
Crowdfunding Tip 6: Planned Marketing & Outreach
Crowdfunding platforms are not listing services. Period.
Regardless of the platform, the results you get from the platform are proportional to the effort and attention you put in to the platform and tying this into your own fundraising efforts both on and offline.
Crowdfunding Tip 7: The Data Perspective
The overall crowdfunding industry is growing exponentially. In 2011 the total crowdfunding market was $1.2 billion. In 2014 crowdfunding is expected to finish off the year nearing $10 billion in funding online.
Obviously, this means that there are lots of opportunities for those seeking funding and for those who are donating, pre-purchasing, or investing dollars.
1. Use targeted Social Media
After all, Twitter has a huge user base of 316 million users across the world. But with only 72 million of them in the US, there is a huge base of other backers available for you to pitch your campaign to.
You can increase exposure to your campaign by targeting certain countries and nationalities in your social media campaign.
2. Use the Power of Local Outreach
Help-A-Reporter-Out (HARO) is a platform that allows reporters connect with sources on particular topics
3. Know Your Costs
Apart from the product itself, one of the most important things when seeking funding is to think about what you’re offering backers in return for their investment.
Boost Your Crowdfunding Campaign Exposure With Gadget Flow Marketing Plans.
Having had the opportunity to come across as well as partner with several backer related services in recent times, we thought of making our this week’s crowdfunding article a bit more “Backer” centric. Here are some of the most useful websites that will make the process of hunting for influential backers for your crowdfunding campaign super easy.
Apart from generating better exposure for your crowdfunding platform, Backercamp also comes with lucrative plans that will help you get more backers for your campaign. It’s called their “Partner Program” where they will start generating pledges by pitching your project to their community of serial backers, early adopters, and consumers. And that too, without charging any upfront fee.
Just like the name suggests, this is a cool hub of influential backers for your Kickstarter and Indiegogo projects. Their members have supported 553,304 projects on Kickstarter and Indiegogo and an average member is known to have backed 99 crowdfunding projects. Projects that have been featured in the BackerClub community have raised $172,709,139. The average BackerClub project receives $1,425 in new pledges from their repeat-backer community. And, since November, 2014 they have featured around 2,452 projects! So you can very well understand why it would be wise to join their community for your crowdfunding campaign.
Sometimes all you need is a good list of backers and influencers you can make use of. That’s where Krowdster comes in place. Their Backer Directory is the world’s largest searchable database of over 2 million Kickstarter and Indiegogo campaign backers and super backers. And if that isn’t enough, you can now also select users from any category in Backer Directory and use Twitter Marketing to engage with them for you on autopilot.
This is an amazing service which allows campaign creators to run a referral program during their crowdfunding campaign. It will provide incentive for Boosters (backers or affiliates) to share and promote your campaign. That way, you can easily make your campaign go viral. Kickbooster automatically creates your Booster links, tracks your Boosters, clicks, dollars raised, and takes care of payouts for you. All you have to do is connect with Kickbooster, set your reward, and spread the word. What a cool way to get those backers glued to your campaign.
They provide deals on Kickstarter projects to their members. You can collaborate with them and get some lucrative deals offered to their backers for more attention.
Crowdjammer uniquely connects via social media to grow fans who pre-commit to supporting projects that will launch using crowdfunding. That way, you’ll be able to grab the attention of some backers even before you launch your crowdfunding campaign. They ask their pre-committed backers, called Karma Backers, to tell them what rewards or perks they want and how much they will pay using the Crowdjammer Perkolator.
With the biggest database of backers, Backer Database provides access to over 600,000 crowdfunding supporters to network, engage and promote your campaigns. Apart from this, you can also get access to their Media List, Twitter & Social Media Marketing, Content Marketing, Influencer Marketing & More. Everything you would expect from a backer database is here.
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