A point I’ve made in a number of posts is the importance of doing extensive research before launching a crowdfunding campaign. Since crowdfunding is still not very well known, a lot of creators may not fully realize the amount they need to learn in a short span of time and how much work will have to go into the campaign’s presentation, promotion, and distribution of rewards.
Being well-informed going into your campaign and looking into some of the best and worst projects in your category can set you apart from creators who jump blindly into a campaign and then wonder why things don’t go the way they hoped.
Here are a few things to research when preparing a crowdfunding campaign:
Your Idea
Last night you had the craziest dream. Your mind conjured up this amazing idea that everyone needs, or a story that the world must hear. Your creative juices are flowing and your life has a new purpose. You want a hit crowdfunding campaign like the ones you’ve seen in the news and you’re sure people will love it. But are they? Is your idea really new? Will anyone buy into it?
These answers might be, “Yes!” to you and your friends and family, but less clear to others. You should have a strong vision of what you want to do and why it is important for people to support you. Be sure that you have the knowledge and expertise (or a team to help you) to get the project done to the best of your ability. You should also be able to show possible backers proof of concept – through demonstrating a prototype, giving previews, or providing as much information as possible to show them you are serious about this dream project you are pitching.
Look up projects that are similar to yours to see what is out there (they don’t all have to be crowdfunding projects)! You might learn that you’ve hit a lucrative market, or that other endeavors similar to yours have made big mistakes that you can avoid. You can use the new crowdfunding search engine, CrowdRabbit to compare different projects and platforms!
Your Audience
Figure out who you want to market your produce towards. Everyone? Males ages 18 to 34? Get some kind of demographic in mind and make sure that when you’re getting people’s opinions on that you include theirs! Find out what they like most about your project, what they dislike. It might be tough to hear criticism of your idea but hearing it early and making adjustments is better than launching a project that gets very little attention and wondering why.
Your Price and Goal
In this situation you have to figure out what price is going to work for you and your backers. You should figure out what the minimum will be to get your project done realistically – including promotion, production, and distribution costs for rewards. You should research what other products or creative projects like yours are priced at, and find out from your target audience what sounds reasonable for them for the different rewards you will be offering. This is another area where you can learn from what similar projects have done.
Your Rewards
Generally 3 to 10 rewards seems to work, but projects take on many styles that can work if used well. People recommend having lower reward tiers that most can afford. Offer updates that make them feel like a part of your project and maybe they will contribute more later on. Have affordable deals for the basic finished product you are raising funds for, and include higher ones with exclusive rewards or more creative ones. Limited rewards help encourage people to back sooner rather than later.
Show your plan to different people and ask for their input. Many creators find that after having their project up for a few weeks some tiers get more attention than others. Usually you can make adjustments but knowing what tiers are appealing beforehand can save you time and money.
Your Video
Taking a look at videos of successful and failed campaigns in your category can give you a good idea of what backers are and aren’t interested in. You can also look up video production techniques like the ones provided in this CrowdfundingPR post to see how you can make a video that looks polished and professional.
The Platform
Looking into the platform you want to launch your project on is key. Things like their track record for failed and successful projects, the kinds of projects that do well, and their values can help you decide if the one you are leaning towards is right for you and your project.
Manufacturing and Distribution
Making sure your finished project will be easy to manufacture and distribute is important. These things should be lined up or in progress before launch. Make sure you have back up plans in case things unexpectedly to awry.
For more tips on manufacturing a crowdfunded product check out this CrowdCrux podcast.
Best Practices and a Strategy
The internet is overflowing with crowdfunding advice. You can find information from creators who have experienced crowdfunding first-hand (on sites like Crowdfunding Forum and Kickstarter Forum) and learn how to communicate effectively with your backer community and the media. Reading these crowdfunding related articles can help you take on your first campaign like a pro instead of feeling lost and disappointed with your results.
With this information you can create communication plans, a social media strategy, and find scenarios you might come across during your funding period so you plan ahead how you might deal with them.
Conclusion
Taking the time for research before a crowdfunding can be educational and make the experience much more fun and fulfilling. It can help you avoid the feelings of confusion often experienced by creators who launch their campaigns without giving it much though. Some of the best campaigns take months of preparation but the results are well worth it.
Feel free to leave any questions or comments below!
