Tips for Successful Digital Marketing for Crowdfunding
Crowdfunding is never easy, but make sure your marketing efforts aren’t chasing away your dollars.
Crowdfunding is one of those great yet hard things to master when you are trying to raise capital for your next great idea. You are basically asking the community at large to donate money to your cause rather than a panel of angel investors that seem just as harsh as Shark Tank, but a single misstep can bring your crowdfunding campaign to a grinding halt. It always seems that once you’ve lost momentum, it’s hard to get it back again.
This is the part where a successful digital marketing effort comes into play to keep the cash flowing in. However, you must be wise in your efforts to attract everyday investors instead of annoying them to the point of blocking or unfriending you. A crowdfunding campaign that expects to do well should show people why they should hand over their money to you instead of asking for it like an inexperienced kid selling stuff for his or her school fundraiser.
For those of you not familiar with the concept of crowdfunding, it is a platform from which entrepreneurs with an idea can tell people about their idea online and often provides a secure portal from which to donate any amount of money investors wish to give along with the goal amount so everyone can see the progress of the campaign as well as when it ends. These platform sites will often keep a portion of the money raised as their own revenue. Depending on the rules on each platform, you may not get to keep your funds if you do not meet your set goal amount. Popular crowdfunding platforms include Kickstarter, GoFundMe, and Indiegogo.
Here are some practical tips to keep your crowdfunding campaign from becoming an annoyance:
- Create a connection with investors – Don’t give people the “hard sell;” they are investing in you as much as your idea, so coming off as “too sales-y” can drive away genuine interest. Instead, tell a personal story, such as your inspiration for starting your campaign, and let the human element take over in capturing people’s minds as well as their cash.
- Avoid spamming social media and RSS feeds – Posting about your crowdfunding campaign can be a slippery slope since people may view you as desperate if you post about the campaign too often, particularly if you are just straight-up asking for money. When you hit a milestone, say something positive and thank those who have already donated as it will sound more like an accomplishment than a money grab attempt.
- Say something meaningful – The last thing people want to hear is you begging for money on social media, email, or your other marketing funnels. Try giving people more meaningful content as to why your crowdfunding campaign should matter to them, such as personal stories, fun facts, problems your idea will solve, etc. People are more likely to back something with cash that they believe in.
- Contests & giveaways should be worthwhile – If you are conducting contests to engage your investors, make the prizes something unique and interesting that only those investing will have a chance to receive. It will give a feeling of exclusivity and worth to those who have given you their attention and money.
- Establish your legitimacy – Provide investors concrete evidence that you are the qualified, intelligent entrepreneur with a solid plan that they hope you are. Create consistent marketing materials or your past achievements to give potential backers confidence. You can also consider partnering with someone who has established authority in your industry to give you some clout.
For more information on successful digital marketing campaigns for crowdfunding, contact us today!