Using the internet as a funding resource is a great way to get startup capital that is needed. Crowdfunding is the major player in this field, accounting for billions of dollars of revenues over the years. The only problem is that about 6 campaigns out of every 10 wind up failing to meet their goals. If you want to have consistent only funding for your next venture, then you’re going to need to look at these success factors.
1. Combine Offline and Online Efforts
Technology for fundraising is good, but traditional fundraising efforts combined with technology is even better. The best crowdfunding campaigns are spending weeks, if not months, in advance of their campaign going live working their networks. By getting secured funding that can come in immediately when the crowdfunding does start for real, it becomes a lot easier to get more backers who would normally sit on the fence to jump on board.
2. Big Names Equal Big Money
People like to follow a good investment. The average backer doesn’t mind riding the coat tails of a major backer if that means they can get a piece of the pie as well. That’s why looking for backers that have some name recognition can be a deciding factor in how much success your ideas can actually achieve. The power of who has already invested is a natural marketing tool that will benefit you for years to come if you play your cards right.
3. Your Story Has More Power Than You Think
There are two components that must be satisfied in every backer. The first is that you must make an argument that is both rational and quantitative. The idea of investing into your idea needs to make logical sense. There must be a sense of excitement generated that urges people to make time to get involved. In basic terms, let them see how much money they can potentially make. The second is that you must relate to the backer. Your story can help you do this. Relating creates loyalty and loyalty creates investments.
4. Lower Goals Mean Higher Conversions
Instead of setting a crowdfunding goal up in the stratosphere, consider setting a goal that will help you meet some basic needs and encourage more success. When companies meet their funding goals, they are actually more likely to raise more money because backers will see you as a winner. Consider setting goals that are just 10% of what you need to actually raise.
5. Create Meaningful Results
When you can drive results on a consistent basis, you’ll be creating the best evidence of future success than backer needs. Whether you’re driving capital online or offline, the ability to have a clear focus that generates meaningful results will always pay off when metrics are in place that can accurately measure them.
Online funding success might still be a failure more often than it is a success, but it doesn’t have to be that way forever. By taking these steps, you’ll reduce the chances of failure so that more success can be achieved in the long run.
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