All about Crowd Funding

Nowadays if you have an idea or a mission and have no funding, do not fret. Crowd funding has been the savior of many all over the world. But for you to run a successful crowd funding campaign you need to be on the right track.

Make sure you have a product that works for crowd funding. Campaigns for gadgets, video games and films have a high level of success.

Campaigns centered on causes in the news or that truly touch people’s hearts are often successful but raising tens of thousands of dollars for a new nonprofit group supporting an arcane issue is not going to work. Raising a lot of money for a personal need rarely works. Browse through Indiegogo and look for campaigns like yours. If you see a high number of failures for those with ideas similar to yours, take heed.

Set a realistic funding goal. According to Kickstarter, only 2 percent of the campaigns that successfully raised funds on the site raised more than $100,000. Compare that to the 73 percent of the successful campaigns that raised $10,000 or less. If you are looking to raise more than $10,000, rewards-based crowdfunding will be a long shot, with very few exceptions.

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You need to give people a good reason why they should trust you with their money. If it doesn’t sound like it is going to work then you can be certain that no one will fund it. You should also employ the effective use of social media. Go for something that is identical to your marketing needs.

Prepare Your Face Off

You can use crowdfunding to help validate ideas before they are fully realized, but if your campaign comes across as half-baked then your audience isn’t going to invest. “People don’t want to back a campaign that’s not going to work,” says writer and entrepreneur Seth Godin on his crowdfunding experiences, and you can’t use crowdfunding as a shortcut to avoid properly fleshing out your ideas.

Strategic Social Media

You don’t need a blanket presence on social media, though the wider your reach the better. Pick the networks that best match your marketing and content strategies and where your potential supporters are most likely to be found. Don’t forget to customize your promotion to suit each platform too: indie band Bigtree Bonsai raised $6,956 (almost double their target) via IgnitionDeck after spreading the word with a #letsmakearecord hashtag.

Produce a Great Video

Video clips give visitors a better idea of your project — they can see you or your product in action rather than clicking through a series of static images. They are also labor-intensive, so don’t attempt to put together a clip if you don’t have the time, resources and expertise required. An amateur-looking video isn’t going to convince anyone to get involved, and at worst, could damage your campaign’s credibility.

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So what are the future prospects of crowd funding? Well it looks like it will be one of the most popular methods for getting funding. Crowd funding will also be one of the best ways for non-profits to get money for their operations.


Crowdfunding will remain a popular funding choice

In years past, crowdfunding for businesses was a novelty, a rare exception to the traditional methods of bank loans, venture capital and borrowing money. Today, announcing your crowdfunding campaign is just as common as any of these other options, if not more so. In fact, Forbes reported that in 2016 crowdfunding is expected to surpass venture capital as a means of financing.

Nonprofits will benefit more from crowdfunding

While businesses in any industry can use crowdfunding, the nonprofit and charity sector has particularly benefited from the growth of this financing method.

“This entire industry is being disrupted with the introduction of crowdfunding of donations,” said Anisa Mirza, CEO and co-founder of charity crowdfunding platform Giveffect.

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