Crowdfunding is fundraising, whereby the fund which is to be used for a business, project or personal concept (idea) comes from the public. It is more like Initial Public Offering (IPO) where a business is presented to the public to render funds that will be used to kick-start the business/idea, with each contributor owing a share in the business.
However, Crowdfunding is quite different in the sense that funds raised are to be used to execute the project without anyone who contributed being part of the project. The major reason they contributed is to ensure you execute and realize the objectives of the personal project or business presented.
There is a higher percentage, and hope in having money to carryout any sort of project, with the aid of Crowdfunding. From records, there are top projects that were executed successfully through Crowdfunding, which are;
i. Sondors Electric Bike which worth over six million US Dollars ($6,000,000).
ii. Gosnell Movie which worth over two million US Dollars ($2,000,000).
iii. Kite Patch amounting to five hundred thousand US Dollars ($500,000) etc.
It is paramount to know that raising funds with Crowdfunding can be successful, and also end up not being successful depending on the technique used in presenting the project/idea to the public.
What determines the success, or failure of a fundraising with Crowdfunding is how you go about it. And below are some tactics that can yield to successful outcome;
1. Extensive Preparation
It is estimated that for one to have a successful fundraising drive with Crowdfunding, such a person should dedicate not less than three (3) months to preparation. Under this phase, you will likely take a look at previous Crowdfunding projects that were successful and weren’t successful, then critically go deep on them to know the reason(s) behind the failures and success of the various projects studied.
One good part about preparing ahead of time is that it helps to build a stable network with like minds, who will anticipate the project and also willing to play a role in form of contribution to that very project when necessary/due.
This therefore means that once an individual/body who is sourcing for funds through Crowdfunding applies this guide of extensive preparation, there will definitely be a record of positive turnout, as long as you engage your audience on regular basis.
2. Involve an Influencer
An Influencer is a person who is highly recognized and respected in a field. i.e. a footballer can be an Influencer in issues relating to football, or sport.
Now bringing this into Crowdfunding, choosing an influencer who is in the sector where you will run your Crowdfunding can bring about actualization of your funding goals.
In most cases people, firms, organizations and others will support your projects not because of its worthiness or importance but because of the endorsement your Influencer has placed on that very project.
For those who don’t know how to get in touch with celebrities who can influence their projects, it is quite easy, as most of them are on social media. But you can still make do of Krowdster which is a tool used to search influencer based on their fields.
3. Select the best platform and funding option
There are a lot of platforms that can be used for Crowdfunding drive such as 234Give, Funda Solva, Indiegogo, Kickstarter, GoFundMe, etc. These platforms are both local and international, of which they have their various rules, features, and functions that must be put into consideration before opting for the chosen one.
There are some platforms that give different options such as flexible funding and geographical restrictions of which if you don’t make proper research regarding these options, you might not be able to claim the raised fund.
4. Ensure The Campaign Accepts All Payment Forms
From our findings, most fundraising campaign on Crowdfunding barely meet their desired target because of payment means, as most audience in their community who wish to contribute towards the achievement of that project were restricted to do so, as their preferred payment method is not allowed by the campaign.
This becomes a factor that hinders the targets of most projects, making them not to actualize their funding goal via Crowdfunding.
Because of this, it is better to allow all payment methods such as PayPal, credit/debit card, and Bitcoin to enable you not to miss any donation meant for your project.
Not all platforms will allow the activation of the several payment methods, especially on Nigerian’s campaign. Therefore, you can take an extra step by contacting someone who stays abroad to start the crowdfunding project for you.
5. Offer tangible Rewards
This is an option that should be considered when going for a project that needed funds to be raised through Crowdfunding. Here, the initiator just has to convince those that will donate towards the projects that there are rewards for them, by structuring the campaign message to suit their interest and also offering tangible gifts to them while the fundraising is on. This alone will appeal to the selfish side of those that never wanted to partake, even if they buy the idea of the project.
These rewards and gift can be presented to them physically, with items like mugs, T-shirts, etc.
It could also be done as identifying top contributors, they presenting something tangible to them as appreciation for donating towards the project.
With the Five (5) explained tactics, it will be nearly impossible for someone to source for fun via Crowdfunding, and still fail woefully. Although there are other ideas that worth adopting when it comes to Crowdfunding, but the five (5) guidelines elaborated on in this very post has being tested by others, and confirm to work efficiently.
You are advised to share this post with Friends and Relatives through other social media platforms, as they might adopt this medium to raise fund for their long term project, that they could not kick-start due to lack of funds.