Fundraising today has become revolutionized with the increased popularity of crowdfunding. Corporations, small businesses and individuals worldwide are finding access to much-needed funds thanks to organizations like Kickstarter, Indiegogo, GoFundMe and more.
What is crowdfunding?
Crowdfunding focuses on appealing to the masses for a small donation. These donations may be $10, $40, or $100. Depending on the person planning a campaign, a reward may be offered in exchange for a donation. Either way funds are raised and products are launched. For start-up businesses this works well since they now have customers who are invested in the business.
How it works
For crowdfunding to work, a clear goal and deadline are essential. From here the creator of the crowdfunding project advertises the campaign ensuring a highly active social media presence. Once the deadline is met funds are transferred into the creator’s account. Once the creator receives the funds they issue out the reward where applicable.
Crowdfunding and social media
Successful crowdfunding is linked to social media presence. The more of an online presence you have, the higher your chances are of having a successful campaign. That being said, crowdfunding can be successful for people with a smaller social media presence provided they have a network of family and friends willing to donate and spread the word.
Tips to a successful crowdfunding campaign
Besides having a project, deadline, and time frame, a successful campaign needs to have a few more essentials behind it. To help ensure a successful campaign follow these five tips.
1 Have a small network of friends and family willing to participate in the campaign. These friends and family can donate and share your campaign on their social media networks. The more people who know about your campaign the more coverage it receives.
2 When it comes to rewards be creative and imaginative. Think outside the box. What will draw people to your campaign? A spa voucher or a holiday in the Alps are a couple of suggestions. Vary your rewards according to the different donation sizes.
3 Pitch your idea well. How you pitch your idea is key to successful marketing. Include in this pitch how the donations are going to grow a business or fund a personal campaign. A video with a clear call to action will give your pitch that added professionalism.
4 Show that you are personally invested in your campaign.
5 For the majority of your campaign, live online. A high social media presence is essential