Crowdfunding is a growing sensation in the digital community. As commonly acknowledged, an initial challenge that every innovative entity has to face is raising funds because it does not have a proven track record or operating history. It is the reason why many great ideas were thrown down the drain as their creators, and potential entrepreneurs had no established source of funding. The fact that people fail to get loans from the bank to kickstart their business has compelled many entrepreneurs to look for help from the crowd. And this is the ground where a new type of funding comes into play.
Crowdfunding involves collecting small amounts of capital from a large number of individuals to support a startup. The crowdfunding websites and vast networks of people present on different social media platforms enable to bring investors and entrepreneurs in contact. This process holds the likelihood of expanding the pool of investors beyond traditional venture capitalists, relatives, and business owners. Given the current nature of the industry, we can easily state that crowdfunding is transforming the way how people carry the bag.
Launching successful crowdfunding is important as it gives you the first push you need to turn your dream into reality. Hence, it is essential for every entrepreneur to consider some vital issues before leaping on this road. Below there are a few fundamental aspects of crowdfunding that will guide you to make wise decisions:
Figure out the difference between ICO and traditional crowdfunding
ICO features a new step in the development of crowdfunding. Both concepts have similar goals, yet they reach out to them in different ways. ICO is also a fundraising tool that trades digital tokens in exchange for cryptocurrencies or services. However, there are some differences regarding accessibility, projects, and rewards. For instance, crowdfunding tends to be limited to a predetermined region while ICOs are global, and the main goal of crowdfunding is to gain enough investors whereas ICOs move about the blockchain providing a spectrum of options for the company. The point being that ICOs and traditional crowdfunding have a lot in common but there are some differences to be mentioned regarding global communication, marketing campaigns and building the project community.
Research for a viable platform
Conducting research is the first step for every successful campaign. Mine down for successful strategies and get to know the rules that exist around this funding source. There are numerous platforms out there ranging from general industries to specific niches. Analyze the parameters of your project and spot out the platform that suits you best. For instance, the Kickstarter and GoFundMe are a few sites that facilitate crowdfunding for their members. The members can then raise funds for their projects. Keep in mind that only the right platform can enable you to connect with potential investors and the target market.
Know your target market
Before you take any step for marketing or going live with your campaign, you need to become familiar with your target audience. Evaluate the changing perceptions of the consumers and what is being offered by the competitors. You cannot enter the market with mere assumptions. It is extremely important to have real-time data that helps you get familiar with the target group. The renowned platforms prefer to promote solid market-fit products.
Hire a professional SEO expert
The leading SEO platforms are constantly punching up their search engine algorithms making it critical for the companies to use right keywords in their content. Make sure you hire a professional SEO writer who can help you move up the grid by making the company name appear on top results.
For every campaign to turn out successfully, it is crucial to market it using best means possible. Start sharing your campaign on various social media forums, advertise over the blogs and anywhere else you can get. The crowdfunding platform that you choose is not going to do all the promotion for you; it depends on you how you reach out to a wider audience. You can also go for journalists at top publications. It will be really helpful if you build your social media following before you launch the campaign as it will help you to access large groups of people once it begins.
Another great move will be to gain insight into how other related businesses around the world are doing with their campaigns. Find out how big names in multiple digital domains outweigh the negative elements. For example, the Autoblock that entered into the spheres of ICO with a concept that was quite original and dynamic.
Therefore, it all depends on you how you showcase your campaign.
Communication is the key
Keep your investors updated at every step of the way. Even though there is no need to tell them every detail, it helps to build trust if you are transparent in your dealings.
Similarly, always appreciate feedback from your clients. The more feedback you receive, the easier it becomes to figure out the loopholes. It will eventually assist you in developing a demo version of your product. And once the campaign goes public, you cannot just leave it on its own. Kickstarter highly recommends having a list of followers and supporters whom you can tap at critical points of your campaign.
Do not expect miracles to come your way. A wise decision is to go forth at a steady pace and keep an eye on modifying components of crowdfunding. You may stumble across the way due to various factors but take it as a learning process. There is going to be light at the end of the tunnel if you stay consistent with diligent efforts and a keen understanding of the industry trends.
E&S Group is a leading corporate & law firm offering various services with regards to ICOs. Feel free to contact us directly on +356 20103020 or by email at email@example.com to find out how E&S can help you in ‘making things happen’. For more information click the link.
This article is written by our guest author:
Evie Harrison is a blogger by choice. She loves to discover the world around her. She likes to share her discoveries, experiences and express herself through her blogs. Find her on Twitter:@iamevieharrison