Is Crowdfunding Right For You?

Crowdfunding is the hip way to find investors for your new business or product; it seems like every day we hear about a cool new gadget or service that was jumpstarted by a crowdfunding campaign. However, why is it that some business ventures thrive in this environment while others flounder? What is it about some ideas that make them perfect for a crowdfunding program while others are distinctly ill suited for it? For the answers to these questions, and to see if crowdfunding is the right way to go for your investments, we have to look at why people give money to crowdfunding campaigns in the first place, and how to motivate them to support you specifically.


People want to crowdfund because they want to help create a product or service they have interest in using themselves. Of course you think your product will be wildly successful once it gets off the ground, but make sure you spend money to market your campaign in a way that will draw in buyers and make them believe in it as well. Also, a hallmark of a good crowdfunding campaign is goodies for your donors. Before you create the campaign, decide what “freebies” or bonuses your donors will get at every level, and make sure they’re things people would actually want. Even if you just offer updates or early delivery on the product, people feel special when you take care of your original investors.


Finally, make sure you continue to update your social media with crowdfunding news. It’s not enough to let it ride; successful crowdfunding stories are ones in which the creators offer new and exciting bonuses once every milestone is hit, which keeps people involved and excited about your product. Remember: you aren’t just selling these people your product, you’re also selling them the experience of being an investor. Reward them and they’ll reward you!