How to Create an Effective Crowdfunding Campaign – 8 Tips

Crowdfunding can be an invaluable tool for raising funds for a startup or established brand. In addition to raising finance, crowdfunding can also help your business gain attention and some much-needed PR.

So how can you ensure an effective crowdfunding campaign?

Your first consideration in crowdfunding should be to work out which model is best for your business, and the kind of funds you’re looking to gain.

Generally there are four types of crowdfunding:

1. Rewards-based crowdfunding
   In return for donations from supporters, you offer ‘rewards’ or ‘brand experiences’. This works well if you are only looking to raise under £20k for example, and have a good online following.
   
   
2. Equity-based crowdfunding
   Equity-based crowdfunding does what it says on the tin. Donations are made for an agreed percentage of business equity. This works well for brands with more of a cult following, who want their customers to feel part of the journey – and ultimately want to raise more cash.
   
   
3. Donation-based crowdfunding
   Donations are made with no reward or equity specified. This type of crowdfunding can work well in the charity sector and with large volumes of supporters offering smaller donations.
   
   
4. Lending based
   As an alternative to giving away equity – supporters (or investors) receive interest on the funds provided by them.

How can you ensure crowdfunding success?

1. Learn from others mistakes
   Research the good the bad and the ugly. This should be your starting point and will give you some good validation for your crowdfunding target.
   
   
2. Build anticipation
   Let your audience know your reasons and intention for crowdfunding before going live. Make your customers part of the journey and know the reasons why you’re crowdfunding, and where your brand is heading.
   
   
3. Create engaging and compelling content
   Your crowdfunding campaign page (and content for sharing) needs to feel considered and well prepared – a long page of text about your journey won’t cut it. Break up large chunks of text with infographics, testimonials/quotes from customers & beautifully designed product shots. Keep your campaign alive with new and engaging content throughout.
   
   
4. Allow your supporters to put a face to the brand
   Asking for peoples hard-earned cash to support your business is no easy feat – you need to be trustable, and likeable. One of the best ways of doing this is by including an introductory video to allow people to connect with you on a personal level. This will help convey your expertise, passion and validation for moving your business forwards.
   
   
5. Get creative
   View your crowdfunding campaign like any marketing campaign – how can you create something original? The better your story and the more unique you make it to your brand, the better coverage and exposure you will get.
   
   
6. Know your backers
   Don’t leave your campaign to fate. Have a solid idea of your ideal supporters. Offering equity? Nurture your network and build a rapport with your ideal investors before going live.
   
   
7. Share your milestones
   Don’t just leave your campaign to run on its own. Keep the excitement going throughout the campaign by sharing milestones and percentages. By reminding your audience there isn’t long left you will encourage supporters who may have been watching and sitting on the fence. Make your audience feel like they are missing out on an opportunity to be part of something great.
   
   
8. Spread the word
   Make sure you shout from the rooftops about your campaign with every channel you have available. Look past your social media. Share your crowdfunding links in your email signature, newsletters, and traditional methods of PR.
   

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Want to find out more about crowdfunding and how we can help you? We’ve helped clients create compelling campaigns – for both equity and rewards-based crowdfunding. Get in touch to learn more.

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