You have launched your crowdfunding campaign--way to go--now you need to drive the traffic to fund it. There are so many ways to get the right people in front of your project but it does take work. You will need a specific strategy for reaching your desired target market.
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"A new way to fund creative projects" and "democratizing the way ideas get funded and realized across the globe" are the two mantras from the crowdfunding behemoths Kickstarter and Indiegogo respectively. Crowdfunding has come a long way since Indiegogo launched in 2008, shortly followed by Kickstarter in 2009. Yet there is still plenty of room for growth within the industry. Fortune, referring to studies conducted by Massolution and the World Bank, expects the global crowdfunding market to exceed $90 billion by 2025 or nearly two times the size of the current global venture capital industry. As crowdfunding unyieldingly enters the financial landscape, more and more entrepreneurs and business hopefuls will too. Odds are, if you are reading this post, you are one of them. So the question is not whether or not you will use crowdfunding, but rather which platform would provide you with the best results.
Not interested in either Kickstarter or Indiegogo? Check out other crowdfunding platforms
Cost is cheap
When creating a campaign to showcase your idea to the world, your out-of-pocket costs are nothing. Crowdfunding platforms make money when you make money, so there are no upfront costs. In fact they want you to be successful because the more you raise, the more they make and the better their reputation (so more future users). Most crowdfunding platforms even supply you with a template to fill out helping you create a compelling story for potential backers.
If you have a small budget, then there are plenty of third-party services that can help you create your pitch video, advertise, create your story, take product photos--really anything that you can think of. In a future post I will explain some of the resources available to you.
Crowdfunding: share a cause, set a goal, and raise money. That's the simplified version and yet it can be overwhelming when selecting a crowdfunding platform. The general segmentation of crowdfunding is reward-based, donation-based, and equity-based. The below list is to aid you in exploring some of the available options.
Kickstarter is the largest crowdfunding platform on the market and focuses on bringing creative ideas to life. The Kickstarter name is synonymous to crowdfunding and has the highest traffic volumes of its counterparts. It uses fixed funding (all-or-nothing) and backers are rewarded with perks (campaign products or SWAG).
I’d like to take pause and reflect upon America, the land of opportunity. As we have celebrated our Independence Day these past few days, I’ve been thinking a lot about how grateful I am to be a citizen of the United States of America. Here, people can define who they are. Here, people can determine their own destiny. Here, people can fulfill that great American Dream.
Lately I’ve been reading the book “John Adams” by David McCullough. After the Revolutionary War, Adams lived in London for a time in an attempt to build a relationship with Britain and get trade going between the two nations. One thing that struck me about this time in history was that it was widely believed that America as an independent nation wouldn’t last, that it was only a short matter of time before America’s government would fold and it would come crawling back to the king. Obviously, we know that didn’t happen, and that America quickly rose to great power on the international stage.
The world of entrepreneurship is an exciting one. It involves a roller coaster of emotions, more failures than successes, and the constant worry of whether or not you’re moving in the right direction. This world is definitely not for the faint of heart. But, it’s not without its rewards: the thrill of seeing your idea become something tangible, the satisfaction of bringing solutions to people’s problems, and the courage of overcoming great challenges. It’s a world of opportunities, risks, and challenges. But more important, it’s a world of passion, dreams, and creating.
As a former public accountant, the topic of the JOBS Act in relation to crowdfunding intrigues me. Going through the twenty-two page Act (yes, I actually read it all), I may have slightly geeked out and dusted off my old SEC Handbook from college to follow along some of the references in the new law. H.R. 3606, or more commonly known as the Jumpstart Our Business Startups (JOBS) Act. The JOBS Act was signed into law on April 5, 2012 by President Obama, as a fairly bipartisan vote with 390 yeahs and 23 nays in the House and 73 yeahs and 26 nays in the Senate.
So then, what is the purpose of the JOBS Act? In a nutshell, it has to do with providing greater access to capital. The Act changes some of the SEC rules (Securities & Exchange Commission) with the intent to provide leniency on “emerging growth companies” (which the Act basically defines as companies issuing stock with revenues less than $1 billion in a fiscal year), specifically when it comes to accessing capital. There are a couple aspects of this law that has interested me the most.