You will find tonnes of crowdfunding success stories on the web, with some projects raking in millions and finding great success. While it is true that a large portion of crowdfunding campaigns do end up successful, let’s not deny the fact that a larger portion of campaigns fail or go unnoticed, i.e: are unable to accumulate the funds that they require.
There are many reasons for why this happens. In this case study we are going to look at some of the factors people consider before deciding if a campaign is worth investing into.
1.Your Background
This is a very important factor to consider, but unfortunately many aspirants totally ignore it. It is very important to highlight your background and tell people your story.
For example, tell visitors who you are and where you come from, this will make you more approachable to potential investors.
You can also include experience in the field so that they understand how much you really know your product. Think about Mark Zuckerberg, when he wanted to get a loan, he introduced himself as a Harvard dropout and the inventor of several pieces of software. Today you can either go to secured lending companies like Elogbook Loan for a small quick start or for a greater monetary amount, to a crowdfunding site like Kickstarter, where your background is important.
- Speak About the Benefits of Your Idea
You have to explain your idea in detail, but instead of going into technicalities, tell users about the benefits that they or the community will enjoy as a result of your creation.
For example, if you are making software, tell users what the software does and how it is going to help companies or them personally. In the case of crowdfunding, people usually invest in plans that help the community as a whole, so make sure you write on a larger scale instead of targeting a very narrow niche market.
- Offer Investor Incentives
Crowdfunding funds almost everything, including fully fledged movies. Recently, a movie was produced where investors were given an option to see their names as producers, something that pushed people to invest in the movie. At the end of the day, it is all about attracting people by giving them something different.
Your campaign should also incorporate investor incentives. Most crowdfunding sites will give you an option to give small gifts to whoever donates, but you can be different and come up with even more creative incentives.
We hope this small but effective guide will help you find investors for your business easily. It is difficult, but with proper planning you can easily hit the bull’s eye and get the money you need.