/ crowdfunding

Am I ready to crowdfund?

If you are thinking about crowdfunding your idea, then you are definitely wondering whether you are ready for it or not. If you are wondering what might constitute readiness, you may have come to the right place.

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80% of the successful crowdfunding campaigns have had at least a couple of months of preparation before they went live. It is important to be prepared because
a) You will be able to handle any sudden surprises that could spring up during the campaign.
b) Your idea will be out there for the world to judge and support. You cannot come off as unprepared in the due course of the campaign as this might impact your product’s brand image in a negative way.
c) If done right, not only are you crowdfunding one of your ideas but you are developing an investor and a consumer base
You are ready to crowdfund if you have answers to the below points which broadly constitute the ‘Pillars’ of a perfect crowdfunding campaign. These pillars are applicable to any kind of creative project (Art, Music, Product Innovation, Tech etc.) and they will surely help you lay out a clear path.

Idea
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Having a great idea is just half the battle won. The most important part of it is ensuring people can SEE your passion and the need for your idea to become a reality because these are the indicators of whether people would open their hearts and pockets. Be clear on why your idea stands out and what purpose is it going to serve once it becomes a reality and convey this on your campaign page.

Plan of Execution
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You are more likely to be funded if your idea is in the execution stage. People prefer to see the prototype or at least a glimpse of the creative work that they are about to contribute for. A detailed plan of how you are going to make your idea into a reality would build up trust that you are clear about the end goal. So, it is important to figure out at what stage you are. In case you are at a pre-idea level, you should be confident that you can convince people about your seriousness to take it to the execution level.

Expenditure Breakdown
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Letting your contributors know exactly where and how their contributions will be used helps increase trust. This also showcases that you have done your research thoroughly and are capable of executing your idea.

Identifying Your Target Contributors
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Your target contributors vary based on the field that your idea belongs to. Being prepared with the list of potential contributors from your circles, your peer groups etc. will give you a clear view about who would be willing to contribute to your idea. This is important because you will gather 70% of your funds from the circles you identify. For example, if you want your music album funded, the target groups would be your fan base, people who follow the genre of your music, music lovers, social media forums focused on music.

Incentives/Rewards
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It has often been observed that interesting rewards (Return gifts to your contributors) are a great motivation for people to contribute. Deciding the rewards and describe them in a way that would invoke the interest of the reader. We strongly advise you to be clear on what percentage of the goal amount would you spend on the manufacture and shipping the rewards. This will help you handle your goal amount smartly. The ideal reward list is a balance between creativity and optimized cost.

There was a campaign done in 2011 where the goal amount was ₹159900 but they ended up raising ₹18036157. They were not prepared for the logistics of the reward manufacture and shipping. This resulted in bad PR since the backers were unhappy with the long delay in rewards. Studies claim that the ideal number of rewards is 7 to 9. Another campaigner forgot to factor in the shipping costs and ended up spending a huge chunk of the goal amount on the rewards rather than the product for which the crowdfunding campaign was run in the first place.

At Goodclap, the ADD rewards section helps you factor in the shipping costs and showcase the rewards to the people contributing , thereby helping you plan and represent your campaign better.

Once you have sorted out the pillars, answering the below questions will take you ahead towards 100% readiness for your campaign.

  1. Why would people contribute: Based on your idea, list down a few points on why you think people would contribute to your campaign. Is it because of your idea or the marketing or the interesting rewards?

  2. Am I comfortable asking people: Once you have the above things in place, the success of the campaign boils down to asking people. You need to let go of any inhibitions about asking for funds and be comfortable enough to have discussions about your need for funds.
    Have a project but you want to finetune your crowdfunding readiness? Want an expert consultation to design reward ideas for your campaign? Have an idea that you want to crowdfund? Have an idea but need help setting up your campaign. Get in touch with us here. We would be happy to help!

Happy Crowdfunding!

Sita Pavani

Sita Pavani

You can either have results or excuses, not both! Book Addict | Foodie | Sherlocked | Strategies And Engagement ,Goodclap.

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