by AXF Team | Crowdfunding
Top Ten Tips For Crowdfunding
How do you build a successful crowdfunding campaign?
Crowdfunding can be a bit of a minefield, not to mention a whole load of hard-graft! There are some things you can do though to help you along the way and we’ve pulled together the top tips for getting your pitch noticed and reaching your funding goal.
1- Tell your story
Let the crowd in with open arms. Be transparent, they want to know all about you and your company, so tell them your story – let them know your history and your goals. An investor won’t put money into a pitch blind if they have some background knowledge they could be more convinced by your business and you personally. When you let them in on the story behind the project, why you’re crowdfunding, this allows potential backers to feel more connected and make them more likely to invest you.
2- What’s in it for them
Although the main aim of crowdfunding is to raise funds for yourself, you do also need to focus on your backers. The more they can get out of it, the more support they’ll give. With this in mind create rewards that they can’t get anywhere else; make sure they are one-off-money-can’t-buy offers. These unique offers should also relate to your company, thanking them for their support in a special way.
3- Here comes the hard-work
Crowdfunding is a whole lot of hard work; get your coffee cups ready, as it isn’t the easiest of rides. Once the pitch has gone live you can’t simply sit back and expect the money to come rolling in. Your pitch platform will do as much as they can to help your pitch, but remember it is YOUR pitch. You need to identify your target audience and promote your pitch to them. You should have a list of specific individuals that you contact directly. Make it personal, and if you are putting in the hard work you’ll look busy, exciting and intriguing so do everything you can to be active and engaging, promoting your pitch.
4- Social media
When crowdfunding you simply can’t ignore the power of social media. It allows you to reach people quickly and easily, gaining followers, supporters and potential backers. With this you can build a community and generate relationships, this community can then share, re-tweet, favourite and like, giving your pitch the chance to go viral within this huge network. Use social media to share updates, information and good news. Remember crowdfunding is all about the power of the crowd – and here’s a massive one!
5- Keep everyone updated
Updates allow people to keep track of the project. If people continuously see updates they know that you’re busy and still working and these consistent and informing messages mean people begin to feel included in the project. Updating your pitch and other news outlets, with good news and information creates more of an interest and makes you appear more trustworthy and credible – showing your transparent means more people see you as a reliable source. Furthermore, it keeps people coming back looking for the latest goings-on's – so make sure you’re constantly engaging and informing.
6- Make an engaging video
A video is an entertaining way to learn about a company, whilst simultaneously allowing people to connect with the face behind the business – a real human! Videos can help to grab attention and often do this better than words do – they get the message out there in an eye-catching way. Studies show that most people find it easier to engage with visuals, and they would much rather watch a video than read a business plan, so take advantage of this and use a video to get people excited and engaged in your business.
7- Use your support network
Don’t forget about your closest allies – your friends and family! Ask any of your close support network for any initial donations, if they can spare it, this way your fund will look better on launch as there will immediately be some cash in the pot, helping to make your pitch look more attractive to investors. Ask them to champion you and spread the word, make sure they’re sharing and re-tweeting like crazy. They are your first level network of supporters and don’t underestimate their importance. Get them involved in what you’re doing and although they may not understand the business as much as a seasoned investor they are YOUR biggest fans and therefore, shouldn’t be undervalued.
8- Don’t lose momentum
After your initial burst of energy with the launch don’t lose this excitement and carry on spreading the word with the same enthusiasm. Make sure everyone is as excited as you are about the end goal and build up to it. It’s important to keep the energy up as if you stop paying attention it comes across to potential backers that nothing is happening and if activity slows they’ll assume the project is slowing as well. This is where updates become important; so stay engaged and involved throughout the campaign.
9- Make sure your presentation is on point
Squareknot runs Connect Events, which gives crowdfunding businesses the chance to present their plans directly to potential investors. This opportunity enables you to get across what’s needed, whilst making it interesting and engaging. This is your chance to make a good first impression – something that can be vital during a crowdfunding campaign. You must be prepared to answer questions and also prepare to present yourself in an open, honest and confident way – investors may be just as interested in their chance to meet the face behind the company. Remember that most investors invest in people they believe in rather than a business plan they like.
10- Be unique
It is a lot easier said than done, but being a little bit different could be what helps you reach your goal. There is a lot of competition out there and you need to grab attention. There are a variety of ways to do this, from your rewards to your video, but it’s also about personality, show that you and your business is unique and interesting. You should reflect your company’s values in the way you communicate, so don’t be afraid to be funny or informal on things like social media, people should want to view you as a friend, you should be someone that they enjoy listening to. Remember, the more creative and unique you are the more exposure you get and this could lead to more investments.