Last updated Unknown

Status: Tags: Links: Crowdfunding

Steps to Crowdfunding

1. Choosing your crowdfunding idea (product/project/service)

   • Something you and other people are passionate about
     • ex) Videos, videogames, prototypes, service

2. How much? Setting your fund-raising target

   • Crowdfunding platforms are only successful if they meet the minimum threshold
   • Crowdfunding should only help fund a project, not make a profit
     • Total should comprise of minimum costs for progression, +10% for fees, +cost for rewards
   • Set stretch goals to promote backing past your threshold

3. How long? Setting your campaign length and creating a schedule

   • 30-50 days is common for successful backings
   • Add 30 days if you lack a team, community, <50k goal, >250k goal, >1 million goal
   • Be okay with delaying a launch

4. Setting your rewards/incentives and stretch goals - $25 is most commonly bought perk - Make them unique and limited

5. Crowdfunding Roles

6. Sharpen your axe: planning, materials, and resources

   • Planning and Coordination
     • Have a detailed strategy and map with calendars, meetings, and check-ins
     • Bi-weekly check-ins with everyone involved
   • Materials
     • Literal materials as well as renders of product
   • Resources
     • Time, money (refunds, fees)

7. Telling a meaningful story (and using the right words)

   • Words and phrases associated with reciprocity and authority produce the best responses, while projects that focus too much on the need for funds fail
   • Language:
     1. Reciprocity (those who backed us will receive)
     2. Scarcity and rarity (given the chance)
     3. Social proof (has pledged)
     4. Social identity (Accessible to x group)
     5. Similar values and jargon
     6. Authority (can afford, will be)

8. Creating a viral video: three use cases, shareability, and humanization

   • Use cases should showcase different groups to broaden market
   • Show people in the team and their related ideas
   • Demonstrate the use of the product
   • Under 5 minutes
   • Get feedback

9. Building your audience—the three As - Affiliates - Choose appropriate incentives - Advocates - Followers - Activists - Those willing to do extra work for the campaign that will receive greater rewards

10. Super-credible launch, early donor engagement, and media outreach - Have endorsements, press conferences, acts of security for your followers - Send emails to eager customers - Build hype around your launch - Do more than just post a launch, keep making posts and creating digital media - Ask help from media outlets and relevannt influencers

11. Week-by-week execution plan: engage, engage, engage - Continuing engagement can influence customers to upsell

12. Make data-driven decisions and final tips

• Optimize market and launch timing
  • Trends, competition
    • Ask questions, listen to community
      1. Segment the audience. By reaching out to specific groups of people within the community, you can draw better conclusions.
      2. Ask only one question. People are busy. Answering one question is easy and doesn’t take too long. Ask the right question.
      3. Expect exaggeration. Be aware that people tend to choose the extremes in surveys. When it comes time for them to actually contribute, only a small percentage will actually put up the amount they selected in a survey.
  • Monday/Tuesday is best

References: