Over $34 billion was raised through crowdfunding campaigns in 2015 alone, according to research conducted by Massolution. If you have a business idea that needs a little financial help getting off the ground, crowdsourcing has never been a more viable resource than it is today.
In order to make your campaign as successful as possible, here are three things to consider that can help encourage more backers to contribute to your cause.
Make It Easy for People to Contribute
As crowdfunding has grown in popularity in recent years, so have the crowdfunding platform options. Some of the most popular choices include pioneering sites like Kickstarter and Indiegogo, as well as newer players like RocketHub, Crowdfunder, Appbackr and Crowdrise. When considering which crowdfunding platform is the best fit for you, one important feature to consider is payment options.
You want to make it as easy as possible for people to contribute to your project, so look for a platform that takes payment security seriously. Top-notch payment security should be non-negotiable and you can take it a step further by choosing a platform that features compatibility with the most-popular mobile payment systems, like Apple Pay. This makes it even easier for people to make a quick contribution to your campaign on-the-go from their Apple iPhone 7, which is key for people who learn about your campaign from a friends’ social media post while out and about. The easier it is for a person to complete a campaign contribution, the more likely you are to reach your fundraising goal.
Don’t Be Greedy
One of the most-used crowdfunding sites, Indiegogo, offers campaign creators two fundraising options when creating a campaign. There’s a keep-it-all (KIA) option, in which you get to keep all of the money raised, regardless of whether or now your goal is met. The alternative is an all-or-nothing (AON) option, in which you only keep the campaign contributions if your total goal is met.
As the campaign creator, the KIA option may be your first choice, as it reduces your own risk, but think again. According to academic research examining over 47,000 Indiegogo campaigns, AON campaigns consistently outperformed KIA campaigns in total number of contributions and the percentage of projects that reached their fundraising goals. But why? Contributions to your campaign can feel like a real gamble to your backers, especially if you are new to the business. From a backers perspective, AON campaigns are less risky of an investment. Indiegogo makes this risk worthwhile for you as well, offering a lower fee for AON campaigns than for KIA projects.
Make It Personal
If you really want to get people to open their wallets, you need to dig deep and find a way to make your campaign personal. Backers are more likely to connect with you as a person than they are with your idea, no matter how genius of a product it is; it’s simply human nature.
For this reason, it is crucial to create a professional video to present all of the details of your project, but most importantly, it should present you, the entrepreneur, to the audience. This has to be more than a simple introduction; it needs to inspire connection and camaraderie from complete strangers. Many people have seen success by highlighting their own entrepreneurial efforts, both successes and failures, and the lessons learned, as a way to inspire a more personal connection with the audience.