Strategies for a Successful Crowdfunding Campaign Launch

Are you working on an innovative project and planning to kickstart your crowdfunding campaign soon? If so then this article is just for you!

To clarify, crowdfunding is a fundraising method facilitated by online platforms, enabling a group of backers to financially contribute to one or more specific projects. Before diving in, ensure your project is sufficiently developed for a crowdfunding campaign—having a finalized or near-final product, a production line in place, high-definition visuals like photos and videos showcasing your product, and more. Typically, backers are more inclined towards projects that are well-developed and tangible. If you believe your project meets these criteria, here are our top 10 tips for a successful campaign!

Craft a Precise Pitch for Your Project

The step involves evaluating your project and product: What sets it apart? What unique aspects does your product offer compared to existing ones? What makes it innovative? It’s crucial to succinctly present the essentials—ensuring that your audience grasps your project from the first few lines of copy. When crafting your pitch, consider your audience’s perspective: Are they familiar with crowdfunding? Do they understand your product category (yours or your competitors’)? Are they acquainted with your brand?

Tailor your copy and message to your target audience based on these considerations. Adjust by elaborating on these key points if needed.

Example: The Coolest Cooler Kickstarter Project

The Coolest Cooler Kickstarter Project is an example in effective copywriting. Present a problem, agitate it and make the potential supporter feel the pain of not having the Coolest Cooler and explain the features that make it awesome. Below is the initial copy from that campaign.

Regular coolers are boring, break easily and are a hassle to haul around just to carry the ice. The COOLEST cooler is 60 quarts of AWESOME packed with so much fun you’ll look for excuses to get outside more often.

Maybe you want to use the built-in ice crushing blender to whip up some margaritas or smoothies on your next boat trip or tailgate?

Engage Your Inner Circle for Maximum Support

Your close entourage, also known as the 1st circle, holds pivotal importance in kickstarting your campaign. Ensuring their commitment as your initial contributors is paramount from the campaign’s launch. Slow initial contributions may not instill confidence in unfamiliar internet users regarding your project, hindering the crucial initial momentum required for campaign success – the renowned ‘snowball’ effect.

Who are the people in this innermost circle? Think of your Mom, Dad, your friends, your partner, co-workers. People who know and love you. This is where you start. A powerful support system goes a long way to jumpstarting a successful Crowdfunding Campaign.

Moreover, consider that, on average, only 5% of visitors to your collection page actively participate in your campaign. This statistic underscores the significance of rallying your inner circle right from the outset. While the internet and crowdfunding platforms grant exposure to a broad audience, it’s prudent to remain modest when estimating potential future contributors.

Identify Your Audience

Defining your product and campaign targets involves asking key questions: Who are the potential enthusiasts for my innovative product? What drives their interest? What are their typical habits? Which social platforms do they frequent? Compile profiles of these target market segments.

Addressing these inquiries beforehand is crucial. It allows you to tailor your messaging and engage your community proactively before the campaign. This can be achieved through direct outreach methods such as trade shows, newsletters, social media teasers, and more.

Utilize Our Free Investor Persona Guide

We have a nifty and free download to help you identify who your audience is—when you know who you’re marketing to it makes your marketing efforts much easier. Download our guide for free here.

Define Your Campaign Goals

Your campaign objectives should be closely tied to the budget required to launch your project. They should also align with the size of your community (individual contribution multiplied by the estimated number of contributors). Ensure you factor in the actual financial needs of the project, including potential costs for rewards (such as product expenses, shipping, and delivery). Also, plan for unknown unknowns where possible. Plan for an eventuality where you’ll need more funds than you originally estimated. 15 – 25% is a good margin to set aside for unforeseen costs.

Additionally, it’s essential to determine the duration of your campaign, which should correspond to the allocated budget. Keep in mind that campaigns usually last between 30 to 40 days. Extending beyond this timeframe might risk losing engagement and interest from your community before its conclusion.

That said, if you have something that’s truly compelling, you can have a campaign that spans multiple months or years, as is the case with the Kickstarter Campaign Eiyuden Chronicles. The creators of this game know who their audience is: avid Role Playing Game enthusiasts—they knew this audience was craving a solid large-scale JRGP (Japanese Role Playing Game) and they delivered content that spoke to that audience.

Choose the Most Suitable Financing Option for Your Project

There are three primary types of crowdfunding, and your selection should align with your project’s strategy:

• Donation or Pre-sale Crowdfunding: This includes donations without compensation, symbolic donations (such as postcards or branded t-shirts), and pre-orders or pre-sales of your finished product (an ideal way to test your market!). However, be mindful of the costs associated with these ‘symbolic’ rewards; even a small gesture like a handwritten thank-you card entails work time and expenses that must be factored into your budget.
• Loan-based Crowdfunding: This involves interest-free loans, loans with interest, or minibon loans. It’s an excellent option for financing aspects overlooked by traditional banks.
• Equity-based Crowdfunding: This pertains to participation in your company’s capital through dividends, bonds, or royalties. It’s a form of financing less favored by traditional investors and usually utilized for project development.

Selecting the Right Platform

There’s a diverse array of platforms available for launching your crowdfunding project. Some cater to a broad spectrum of projects, while others focus on specific categories like culture, social causes, the environment, or digital innovations. It’s worthwhile to thoroughly research these platforms to identify which ones have a track record of successful projects similar to yours.

Consider the platform’s reach, whether it’s local, national, or global. It’s crucial to match this with the scale of your project, production capabilities, and budget. For instance, listing your project on an international platform could pose challenges if you lack the ability to handle international orders or provide content in English.

Establish a Step-by-Step Plan for Your Campaign

Efficiently organizing your campaign preparation involves following a structured approach. We recommend creating pre-set schedules using calendars, detailing tasks you can plan in advance: designing your collection page, drafting social media content, tracking influencers in your industry, crafting email newsletters, planning competitions, attending trade shows, arranging product presentations, and more. The goal? To have numerous resources ‘ready to go’ once the campaign begins, as trust us, you’ll be occupied!

Craft an Appealing Collection Page

As highlighted earlier in this article, it’s crucial to effectively showcase your unique value proposition right from the outset on your collection page, emphasizing only a select few key points. To enhance its appeal and vibrancy, your collection page should boast a visually captivating layout. This can be achieved through prioritizing visual content over text elements, incorporating concise presentation videos (30 seconds to 1 minute), high-resolution imagery, engaging graphics, and more, all seamlessly integrated using a platform like FlexClip.

Moreover, ensure a clear explanation regarding why you’re seeking contributors’ support and precisely how the raised funds will be utilized—ideally presented through an easily comprehensible graphic.

Has Your Campaign Officially Launched?

Congratulations! After much hard work, your campaign is now live! It’s crucial to prompt your circle to share news about their involvement in your campaign on social media right from the launch. Remember, while the internet is vital, nothing beats face-to-face interaction at trade shows or physical product presentations to engage your target audience. Often, there’s a noticeable surge in contributions after attending such events where your innovative product is showcased.

Throughout the campaign duration, consistently express gratitude to your supporters and encourage them to spread the word about your project among their networks.

Post-Campaign Analysis

After your campaign ends, it’s crucial to review the data regardless of whether you’ve hit your funding target. This analysis helps determine if your initial marketing focus aligns with a broader market launch. What were the contribution “peaks”: did they appear after a particular event (trade show, physical presentation, promotional campaign on social networks), and why? Also, pinpoint the less productive periods for contributions.

Additionally, express gratitude to the project contributors through a tailored newsletter or personalized message. If your campaign met its goal and the project is underway, maintain communication to update them on progress—such as finalizing production, sending thank-you cards, or fulfilling pre-sales/pre-orders. In short, ensure regular updates to keep them informed!

Final words

In conclusion, a successful crowdfunding campaign launch hinges on meticulous planning, strategic execution, and ongoing engagement. By employing a well-thought-out marketing strategy, leveraging compelling storytelling, engaging with your audience authentically, and maintaining transparent communication, you pave the way for a thriving campaign.

Remember, beyond achieving your funding goal, the journey doesn’t end with the campaign’s conclusion. It’s about fostering a community, expressing gratitude to your backers, and delivering on promises made. Embrace the lessons learned, adapt to feedback, and keep the momentum going even after the campaign wraps up. Your dedication to maintaining relationships and delivering value will not only ensure project success but also set the stage for future endeavors.

As you embark on your crowdfunding journey, may these strategies serve as guiding pillars, empowering you to navigate the complexities and seize the opportunities that arise. Here’s to the exciting path ahead and the innovative projects waiting to come to life through the power of crowdfunding.