Our Expert Advice on Crowdfunding
Remember the days when startup businesses were constantly trying to pry cash from an investor’s wallet? Unless you had extremely well off relatives or a hefty savings account that you were okay with emptying, finding investors interested in your product was the only way to get your business idea out into the world.
Fortunately, things have changed in the way businesses obtain funding…
A little less than 20 years ago, Crowdfunding was introduced, and instead of turning to investors, startups could directly ask their customers to fund their ideas. Sites such as Kickstarter and Indiegogo are just a few crowdfunding platforms that businesses have been using and have found success through. What started as a craze, soon turned into something that started becoming increasingly popular.
At Woodshed Agency, we’ve been a part of the crowdfunding train for quite some time now. Our business is crowdfunding. We’ve run over 250 successful campaigns across Kickstarter, Indiegogo and other platforms. If you’re looking for experts on crowdfunding, you’ve come to the right place. We work with different startups, entrepreneurs and businesses every day that are looking to start crowdfunding campaigns.
What works for crowdfunding, changes can change as fast as social media algorithms, resulting in the internet giving more outdated advice than good advice. We lead our clients throughout the whole process from start to finish. So today, we want you to hear it from the experts, here’s how the Woodshed Agency works when running a crowdfunding campaign.
We call this our crowdfunding “road-map.”
Here we go -
Phase 1: “The Household” Section
We have to get our house in order before we move into our Pre Launch. This means getting all of your branding in order. Your website, Facebook, Twitter, or anything else that represents your BRAND should all be looking cohesive.
This also means we want to help you expand your audience. We know your family and friends will back you up, but we want to dig deeper. Who are your ideal customers? What market do you want to target? These are all things we need to know, so we start you off with a questionnaire to help you, help us.
During this phase, you need to think about your project as a whole. Your project must be great and tell a story behind it. Your project should make people want to fund it!
Phase 2: Pre Launch
This is where we set up a funnel, this means outreach and getting potential backers to a landing page. This can run for three, six, nine months to a year and half. This is the point where we are reaching out to people at some point to become a “backer.”
Press outreach is key in this phase. Be sure that what you have is newsworthy. Reach out to influencers, YouTube influencers, bloggers, backers, anyone who can help you get the word out there. Create media lists and content, and then start pitching your product and campaign. Utilize your social media platforms, these are so important. This process can be long, but so worth it.
And once they’re in, we want to make sure we entertain them with good content!
Phase 3: Active Campaign
It’s time to hit the go button!
This is when all hands are on deck and when all of the work we’ve put in is starting to happen in a nice sequence order. You want to be in control during an active campaign and not having to make sporadic decisions left and right. Make sure you have a good plan going into this, and then trust it.
Here’s are a few tips -
Set your funding goal to be your least viable goal. The LVG is the least amount you need to make on the campaign.
Redirect your website to your campaign on whichever platform it might be on.
Offer great rewards to your backers!
During your campaign, make sure you are active.
Phase 4: Fulfillment
What is the communication like to a backer after the campaign? Are you updating them enough after the campaign so that they feel confident they are going to get their reward at the end? Have you turned over your website, or shut off some of these funnels that aren’t necessary anymore because the campaign is over? This is getting the house back in order and coming up for a deep breath of fresh air!
If there’s one thing we can say about crowdfunding, well, entrepreneurship for that matter, is that there’s no “right” way to get it done.
Still, there are guidelines that we recommend following in order to be successful. So read through our road-map, and let us know if you have any questions. We’re here to help!