Since 2009, entrepreneurs of many different backgrounds have been able to raise nearly $2 billion for their ideas on Kickstarter. In 2014, taking into account all crowdfunding platforms, Americans contributed almost $10 billion into the entrepreneurial world. Some are stunning successes, while others struggle to raise $1,000. There are some secrets to successful crowdfunding, but they’re not so easy to implement.
1. Crowdfunding Begins Before Many Think It Begins.
A crowdfunding campaign doesn’t start with the application to a preferred platform or the design of a marketing video. It begins with old-fashioned local campaigning about an idea before crowdfunding ever gets started. It is very difficult to gain attention to a crowdfunding campaign once it begins, which is my attention needs to be given to it before so it can spread like a virus after.
2. It Needs To Be a Realistic Campaign.
Far too often the entrepreneur is enticed by greed. Maybe if I could raise $100,000… Most projects don’t hit six figures. Many don’t even reach $10k. Realistic goals about how much to raise must be combined with budgeting for the fees that are involved. On Indiegogo, for example, a 9% cut gets taken by the site on campaigns which don’t reach their funding goals.
3. Niche Sites Need To Be Considered.
As few as 5% of the crowdfunding campaigns that are proposed to niche crowdfunding sites actually receive approval. That’s why they must be considered. There is less competition in place. This allows the entrepreneur a chance to attract more niche interest to their project and build a supportive foundation for an idea.
4. Take a Reality Check.
Crowdfunding is nice for the fact that it isn’t a form of interest debt that must be repaid. Many crowdfunding campaigns are rewards based, however, which means debt is still created. A pre-order means inventory must be produced. Lenders don’t put any emphasis on crowdfunding dollars either, which means traditional financing remains as difficult to receive as before.
The goal is to create staying power. Designing a crowdfunding campaign to help achieve this can be difficult, but it can also be rewarding. Success isn’t just handed to the entrepreneur with crowdfunding. It has to be earned and these not-so-easy secrets can help make that happen.
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