Ever wonder why there are so many cool ideas that turn into products nowadays? You can give some of the credit to crowdfunding because it allows visionaries and creative individuals that don’t have six-figure incomes to acquire funds from others who simply believe in the vision and want to be among the first to experience the product in physical form. But crowdfunding isn’t without its controversies which often involve creators not being able to deliver their promises even if they received much more funding than expected. Nowadays, people will think twice about backing a project unless it is launched by a highly respected individual. But you can still attract a sizable following if you take note of these important tips.
1. Read the Rules of the Crowdfunding Platform
You might think your ambitious project will be accepted by the platform but you might not have read the rules recently. Rules and the terms of agreement can change any time especially if a recent suspended project was made to skirt around the rules. Make sure you read the most updated rules to avoid wasting time.
2. Come up with a Plan and Show it to Friends
Transparency is absolutely vital when asking for funding so be sure to lay out your plans and roadmaps so future backers know what you plan to do with the funds. Break down the required funds if possible and provide explanations. Show your draft to friends before publishing it on the funding page so they can find any flaws.
3. Be Creative with your Rewards
Putting the backer’s name on the product as a sponsor if a certain amount is given is becoming too common. It isn’t a bad practice but you should be creative with your rewards just to show that you want to treat your backers in a special way.
4. Have your Social Media Platforms Ready
Sites like Kickstarter and Indiegogo provide enough tools to communicate with your backers but you should have a pretty strong presence in Facebook, LinkedIn and other sites as well. If ever your project gets funded, more people might be curious on your product and look you up on these popular sites. Be sure to have these pages set up so you can gain subscribers and answer any queries they may have.
5. Always Provide Updates
This is pretty self-explanatory. Give your backers that good feeling that their money is going to a project that is worth the wait. It is completely normal for your project to hit roadblocks and delays and you should clearly lay out those possibilities in the risks section anyway. But when things go wrong, don’t hesitate to be honest with your backers. Those that don’t often get eaten alive by the press.