How to successfully launch your product via crowdfunding [Infographic included]

alt

There had been this vision appearing again and again and now the moment has come that you can’t keep it to yourself any longer. It’s time to share this world changing idea with the whole humankind. In search for financing methods you came across crowdfunding and you are pretty sure that this suits your needs. Since you got a unique product you thought of a platform to raise awareness and trigger commitment. At first sight it seems that getting your idea financed through crowd funding is an easy task, but if you dig deeper into it you will realize that there is hard work waiting for you. To have a fruitful campaign launch you need to hedge your bets. Here is a summary of the most relevant points you have to consider and a following guide for a successful campaign.

First steps and preparations

Is crowdfunding right for me?

Crowdfunding is not a viable way to fulfill every company’s dream. It is not a standard solution that makes always sense if you need money for a project. The key question you have to consider is if you have a legitimate reason to ask people for their help in monetary form. In a next step you should decide with which type of crowdfunding you are more successful and better off. Yes, there are two different types of crowd funding to distinguish: the “donation type” and the “investing type”. Pitching your idea on a website belongs to the category “donation”. This type is advisable for ideas, projects and business concepts that have to be validated. It might be in your interest not being obligated to reward your funders financially. A kind of recompense is given through handing for example a prototype to them. The “investing type” however requires an exchange in form of money or equities. To get more information follow this link.

Have you already reached the right state of your project to launch a campaign?

To avoid failing you need to be sufficiently prepared and 100 percent sure you are ready to start your crowdfunding campaign. What you need is a pre-promotion to get feedback whether people will back you up. It’s advisable to build up a first network and provide it with information about your idea. In case it is already tough work to excite your friends and family, you might better rethink your concept or do some research on how you can target your intended audience. Since the time of your campaign will be limited to about 30 days you definitely have to ensure that your project is going to work out. Another point is to define your distribution channels in advance. You have to be able to deliver your product promptly and not making people wait too long. Also you have to be prepared for over-funding.

Is your product qualified for crowdfunding?

Before you launch a crowdfunding campaign on a funding platform you have to check if your product is innovative enough to mesmerize masses. Moreover a half-baked idea won’t generate engagement and willingness to invest. Your project stands and falls with the infectious enthusiasm of the crowd. There are some ingredients your product basically should bring along in order to attain the must-have factor.
1. Does your product solve a problem?
2. Is your idea able to possess the “coolness-factor”?
3. Is the USP of your product worth investing?
Even your idea might be unprecedented, it is possible that people refuse it flatly. Normally this has nothing to do with your product itself, but with the attractiveness of some business sectors and product categories. People are more likely to engage with a product if it is possible to interact or it has a haptic feature.

Do you have a presentable prototype?

People are expecting your idea to work. Hence it has to be tested and needs to be sophisticated. Guarantee that people can test the prototype as well without damaging it or even get harmed.

If you can answer all questions above with a “yes” you have to follow these steps.

Techniques and methods

Storytelling

People on funding platforms are craving for enthralling stories which they can identify with. In order to foster a positive attitude among your audience you have to play safe concerning your storyline: Don’t be tactless and ask for money the straight way. Set your focus on showing your enthusiasm and call on people’s emotions. But pay attention that the issue of your product can be communicated in one or two sentences.

Choose a suitable platform

Since fundraising platforms has sprung up like mushrooms lately, you have to choose wisely which one is best for your idea. Check out this link to have an overview about your options.

Create a cool video

Give people an idea what your product is about. It’s even easier to show the functionality in a video than explaining it by providing a serious of static pictures. As you can see in this link a good video does not necessarily be expensive. Check out the best kickstarter videos of 2014 and why they had been so effective: https://www.youtube.com/watch?v=AEVCSHeXl-Y

Plan your video in advance

To not waste precious time you should do some prior brainstorming before you shoot the promo video. If you don’t have good ideas before filming you won’t get them by starting straight away.

Social Media marketing

After you build up a great story for your campaign, you now need to promote it. Use a facebook page and twitter to gather followers. It is important to grow your fan base before launching the campaign, because basically this task demands time. How you do this the right way you can check out here.

Provide helpful and good information on a website for interested people

Wouldn’t it be great if the press talked about your campaign? Therefore it is essential to offer a lot of interesting and captivating content and press materials to download. You will make it a lot easier for journalists to get an idea what your product is about and to talk about you in public. Nine times out of ten, your site on the crowd funding platform and your facebook page aren’t enough to attract people. Another advantage is that your website helps to legitimate you as a company and builds trust.

Leave nothing to chance

Don’t be too sure that people come across your campaign automatically. With this large number of crowd funding projects yours can get lost very easily. Rather reach out for media outlets by yourself. It might help to send prototypes to popular bloggers.

Offer (a) great crowdfunding reward (s)

Supporters don’t throw money around without a prospect of a fair equivalent. So your job is to provide a cool reward in order to convey the feeling that your project is worth investing. Due to the fact that your backers don’t look for financial incentives only the sky is your limit. For example the people behind this campaign gave surfing lessons to their funders. Here are some more inspirations for you.

With these steps you have the best chances to make your product a huge thing and have a successful launch. But what comes after?

Project realized: check! What comes next?

There is no time to relax now, stay focused. Bunches of distributors will knock on your door to have the permission to sell your product. Due to the fact that people find your product through your chosen platform you have to place a link to your website if you haven’t done it yet. Communicate as much as possible about different development phases to be transparent and trustworthy. Thus your supporters are more likely to stay at your site.

alt

Sources:

https://www.fundable.com/crowdfunding101/types-of-crowdfunding3E9991

https://masscatalyst.com/blog/which-type-of-crowdfunding-is-right-for-me

http://domain.me/raising-money-startups-crowdfunding/

http://venturebeat.com/2012/07/28/5-reasons-your-startup-isnt-ready-for-crowdfunding/
https://www.enterprisenation.com/blog/posts/is-your-business-ready-for-crowdfunding

http://ignitiondeck.com/id/10-crowdfunding-secrets/
http://www.entrepreneur.com/article/236582

http://www.crowdfundinsider.com/the-ultimate-crowdfunding-guide/
http://www.entrepreneur.com/article/228563

https://www.google.de/webhp?sourceid=chrome-instant&ion=1&espv=2&ie=UTF-8#q=is+my+USP+convincing+enough

http://blog.trycelery.com/what-now-5-most-common-questions-asked-after-a-successful-crowdfund/

http://www.forbes.com/sites/theyec/2014/04/10/what-to-do-after-your-crowdfunding-campaign-ends/

People Graphic http://www.freepik.com
Photo girl: DEATH TO THE STOCK PHOTO

Schreibe einen Kommentar

Deine E-Mail-Adresse wird nicht veröffentlicht. Erforderliche Felder sind mit * markiert.