At FundedByMe we are reliant on the crowdfunding success of our entrepreneurs – when they succeed in their financing goals, we succeed!
Over the next couple of months we will pull together some tips and share them on the blog with you.
Today we offer you some crowdfunding success tips from our CTO and co-founder, Arno Smit.
Top tips for crowdfunding success from Arno Smit
1. Create a compelling story
People are more likely to invest in a business that they are passionate about or a story that is very compelling – something that they can relate to. Your campaign should be one, or both, of these things. What makes your business unique? And how will you take advantage of this opportunity?
It is important that your story is clear and easy to understand. Don’t overcomplicate what you are trying to achieve, be clear and professional. Build trust in your idea. Use images, references and cite your own track record and past successes. Create a great campaign video and be honest and polite in everything you say. Also, importantly, check for spelling and grammar before you hit ‘submit’.
2. Who is on your team?
It may seem obvious, but the more people you have working to promote your campaign the greater your chance for success. Do you know of any groups who are already passionate about your cause? Management, employees, suppliers and existing customers are all likely to be big advocates of your brand and what you are trying to achieve. Encourage these people to join your team and teach them how to spread the word effectively.
3. Making a video
An awesome video can make the difference between success and failure for your campaign on FundedByMe. A promotional video is a powerful tool for you to communicate what you are trying to do and gives you a platform from which to build trust. It will help bring your campaign to life, show that you are serious and add credibility to your idea. This is your opportunity to show potential investors that you are passionate, smart and worthy of their investment – don’t waste the opportunity.
You don’t need to be Steven Spielberg to make a short video nowadays – simply grab your smartphone, get a good setting with good light, look straight at the camera and…action! A video should be no longer than a couple of minutes maximum. In this case, less is definitely more.
4. Tell people what you plan to do with the money they invest
People work hard for their money and they will want to know how you are planning to use it before making the decision to invest in your business. You need to tell people exactly what your need the money for and how you will spend it once you reach your financing threshold.
5. Reward people for their generosity
Campaigns – both equity and reward-based, that offer really good rewards are likely to be more successful than those without. By adding value rewards to your campaign you’ll attract a different type of investor. Rewards give investors a return on their investment in the short term. The power in giving something unique, or getting access to the next big thing before it hits the shelves, is amazing. Think about what people are likely to find compelling and then link your rewards to entice people into investing more.
6. Be prepared to spread the word
Once your campaign is live on FundedByMe, you and your team need to actively promote it and spread the word. Successful projects are those where the entrepreneur doesn’t sit back but is very active in letting everyone know about the opportunity they are offering potential investors. Of course the launch announcement is hugely important, but plan ahead to try and maintain a drip feed and future activities as well. Actively manage your campaign so that you maximise every opportunity and don’t fall into a ‘lull’ where nothing is happening.
What is your best tip for an entrepreneur’s crowdfunding success? Leave it as a comment below!