What’s your #1 tip for raising your target funding amount using crowdsourcing?
REWARD THE MEDIA
“With a compelling offer to your backers, anticipation is built, and a great story is created. You’ll attract more backers and give the media something interesting to cover.”
PROVIDE CROWD VALUE
“Kickstarter and Indiegogo have provided a huge platform for companies looking for pre-sales because they provide huge value for the person funding the project. If you can produce something that others want, then promise your funders early access to your product, and they’ll be thrilled to give as long as they get something of value in return.”
HIGH QUALITY VIDEO
“Every time I hear of a successful crowdfunding project, it’s being promoted via a very detailed informational video. First and foremost, the video must introduce the entrepreneur, tell his/her story, and summarize the problem they are solving. The better the quality of the video, the more it will look like you care about your initiative — and that’s what people want to get behind.”
DON’T BANK ON IT!
“While crowdsourcing is an interesting idea that definitely works, the number of companies that are able to rely solely on crowdsourcing to obtain significant funds is still incredibly small. So, companies should not count on crowdsourcing as a primary source of funds, or spend too much time on it to the detriment of other funding strategies.”
STICK WITH SOCIAL MEDIA
“To effectively raise funds and reach your target goal, utilize social media for crowdfunding. There’s just no other way to reach such a massive audience of potential investors without a huge time or financial investment.”
TELL A COMPELLING STORY
“You can’t just show up and ask for money. Let potential investors get to know your business by telling your story, why you are raising this funding and what benefits will come from it.”
“Lay it all out on the table and show your cards. Using video is a great way to show the face and brain behind the company they should be investing in. They should invest in you first then your idea.”
BUILD MOMENTUM BEFOREHAND
“With the proliferation of companies raising money with crowdsourcing, it’s becoming tougher to make a case that you have the product that folks should back. At a baseline you need a compelling story, but beyond that, people always want to back a winner. Build momentum by soliciting backers before you launch your campaign and have them donate early on, as an indication of quality!”
APPROACH EXISTING CUSTOMERS
“If you have an existing customer or membership base, it’s best to approach them first. They already have a vested interest in your company and should be well versed in your products/services, which eliminates a number of initial hurdles.”
The Young Entrepreneur Council (YEC) is an invite-only organization comprised of the world’s most promising young entrepreneurs. In partnership with Citi, the YEC recently launched #StartupLab, a free virtual mentorship program that helps millions of entrepreneurs start and grow businesses via live video chats, an expert content library and email lessons.
Image credit: CC by Chrystian Guy