Sorry big shot venture capital companies and angel investors, but you are becoming a thing of the past like landlines and watching live TV. There is a new kid in town to fund the next multimillion-dollar idea, and its name is crowdfunding.
With individuals and companies going from having empty pockets to raising millions in less than a month to make their ideas a reality, it’s no wonder crowdfunding companies like Kickstarter, Indiegogo, and RocketHub have grown so quickly over the past few years.
Two necessary elements make crowdfunding campaigns so successful. The first element: Have a legitimately GOOD idea. Usually it’s something creative like an innovative movie idea or a cutting-edge solution the addresses some pain point in people’s everyday lives.
A recent client was a great example of this. Its flagship product had already received recognition for its ground-breaking technology, but the company needed to get the product off the ground. With a comprehensive campaign, great video, and widespread social media and PR efforts, the company exceeded its Kickstarter goal by 315%, which made it one of the most successful Kickstarter campaigns, and helped the company fund product development, sourcing and marketing efforts.
Speaking of PR, the second element for a successful crowdfunding campaign is to have a well thought out public relations strategy to communicate your bright idea. Let’s face it - you can have the best idea in town, but if no one knows about it, no one is going to contribute to your campaign. Here are some PR tips to kick your crowdfunding campaign into high gear:
· Use social media like Facebook, Twitter, YouTube, Instagram, Pinterest, and blogs to create a buzz before the campaign begins. Communicate the history and the story behind your idea. Engage your audience. Tell them why you are so passionate about it and how your idea will make other everyone's lives better.
· Reach out to and start the conversation with key media outlets in your market. Getting a write-up in a top blog or high profile media outlet will enhance your fund raising efforts by ten fold.
· Celebrate milestones by posting updates on your crowdfunding page and through your social media networks. Turn your funders into your biggest fans so they recruit more people to contribute to the cause.
· Don’t forget to thank to your funders with special pricing on products, stickers, T-shirts, or a personal shout out. Remember, these are the people making your idea a reality and saving you from the pains of sitting through arduous venture capital and angel investor meetings.