So you want to use the power of the crowd to make your idea happen, but what next? To help you on your way, here are the five things you need to think about before you launch your crowdfunding campaign!
We might be biased, but we really do think that crowdfunding is the best way to get your idea funded. Though it’s not all about the money either! You see, you can grow your network, involve your community, and validate your idea all at the same time. Amazing, we know!
Though, unfortunately, not every idea is suited to crowdfunding. In fact, the number one question we get asked is, “Will my project be successful?”
To help you figure out if this route is perfect for you, we’ve put together a list of five things to think about before you launch your crowdfunding campaign to the public!
1. Can you reach enough people?
For your project to be successful, you’ll need an engaged crowd around you to pledge their support and help spread the word. Without this, you’ll find it difficult to hit your target.
You can reach people in a number of ways, whether that’s through social media, email, friends and family, or word of mouth.
Social media: Having a thriving social media channel (Facebook, Twitter, Instagram) is a massive step in the right direction for anyone looking to crowdfund. Though keep in mind numbers aren’t everything! Your audience needs to be active and regularly engaging with the content you put out!
Email: Having a group of people you can email is a fantastic way to reach a lot of people while telling your story. You can use an already existing database if you have one or find people in your sector who might be interested in what you’re doing. Though please make sure that you are meeting GDPR requirements.
Real world: Crowdfunding might be online but contacting people face to face and over the phone are actually some of the best ways to ask people to pledge. Holding events, like a launch party, is a great way to get people in the room and explain what you’re doing. It works both ways too, as they can ask you any questions they might have!
2. Is your idea good enough?
Here at Crowdfunder, we really do believe that ideas can change the world. Though, you might be wondering, how do you know if your idea is good enough to get funded? And what do we even mean by good enough?
Well, the best thing to do is to ask the people around you (friends, family, customers) and get feedback on your idea. You can ask them if they would support your Crowdfunder and, if so, how much they would be willing to pledge.
This feedback is vital and can really help take your idea to the next level!
3. Do you need to add rewards?
There are lots of different types of crowdfunding, but rewards-based crowdfunding is a great way of increasing the amount of money a supporter will pledge. This means that your total amount raised will be higher, too.
You see, more often than not, a potential supporter will have an idea of the amount of money they want to give before they land on your page. Rewards, especially if they’re exclusive and good value for money, can persuade them to up the amount!
They’re also really good at creating excitement around your project.
When planning your rewards, make sure to cover all types of budget to give everyone a chance to get involved. You can range from as little as £5 to bigger rewards for corporate donations..
4. How much can you raise?
Whilst there is no limit to the amount of money you can raise through crowdfunding, we do recommend setting a realistic target. The amount you can raise really depends on how big your crowd is and how much your idea resonates with new supporters.
The average pledge for an ‘all or nothing’ Crowdfunder is £50. So keep this in mind when setting your target. Additionally, not everyone who visits your page will actually support you. On average, 1 in every 20 people will pledge, so you need to focus on getting over 800 people to your page if you’re looking to raise £2,000.
5. How can you get off to a good start?
Crowdfunding is a bit like a party because no one wants to arrive first. To put it simply, no one wants to be the first person to pledge. We recommend lining up your first ten supporters (usually friends and family) so they can get things off to a good start when you go live.
Before you start shouting about your project through social media and email, we suggest waiting until you have the first 10% already pledged. Why? Well it makes it much more appealing to potential supporters if they can already see other people getting involved and backing your idea.
Looking for more guidance on your crowdfunding project? Head over to our Knowledge Hub.