A lot of entrepreneurs might think that they understand how crowdfunding works, but the actual processes involved are more complex than most realize. Ideazon is a marketing firm that has helped crowdfunding campaigns raise the funds they need since 2012, giving them a level of expertise that few others in the industry can match. Below, they share the answers to four of the most common questions concerning crowdfunding:
1. Which platform is best?
Crowdfunding entails soliciting multiple contributions instead of one large investor, so it’s frequently done online to maximize exposure. Kickstarter is the best-known platform, giving it an established user base that many entrepreneurs hope to draw on. Unfortunately, a lot of other entrepreneurs think the same way, making it a very competitive place to put your profile. As a result, it doesn’t have the highest success rate for most industries.
Kickstarter also uses an all-or-nothing model that prevents entrepreneurs from collecting anything unless they raise their full ask. In contrast, platforms such as GoFundMe and Indiegogo allow entrepreneurs to keep whatever they raise. While it is obviously better to end up with something than nothing, keeping insufficient funds to launch your concept puts you in a legal gray area where you are obligated to provide a product you lack the capital to develop.
Ultimately, the best platform depends on your individual needs. If you don’t need too much money to deliver your incentives, a “Flexible Funding” campaign on Indiegogo might work for you. If you need to shoot for the stars, Kickstarter’s large user base is for you. The best thing to do is to research how multiple platforms have fared in your niche and go where your audience is.
2. How do I go about setting my fundraising goal?
You need to choose an attainable fundraising goal (so that you can keep what you raise on platforms like Kickstarter) while still setting it high enough to actually launch your company (so you are not obligated to provide something you cannot afford). How much you need depends on what your project is, so you should try to put a budget together to see what everything (including marketing and labor) might cost.
This is also an area where Ideazon crowdfunding can prove very beneficial. Our experts have successfully funded hundreds of campaigns across numerous platforms, so we know how much you can realistically get where. We can also help you draw out a business plan that clearly designates which funds are going where, making it easier to determine exactly what you need. If consumer interest surpasses your expectations, we can also advise you on how to quickly scale your operation without compromising quality.
3. How do I determine my target audience?
Finding your target audience entails doing a little homework. You need to research companies that provide a comparable product or service to yours, and then see who they are marketing to. Chances are, you hope to siphon off some of their audience to your concept.
This is another area where Ideazon crowdfunding can help. Our research team can quickly identify who you should be marketing to and then design a campaign that will not only reach them, but really resonate with them. Once a strong connection is established, consumers are much more likely to open their wallets and support you.
4. Which social media platform is best to promote my campaign on?
The short answer to this question is “all of them,” as each platform can be used to reach a different type of consumer. Facebook has a large user base, making it a great place to build awareness of your brand. It’s also possible to post video on the platform, allowing consumers to attach your face to your brand for a more personal touch.
Instagram is great for demonstrating visual projects like anything in the design niche. Once consumers see what you can do, they might want you to do it for them!
Finally, Twitter is the easiest platform to get a back-and-forth going with your audience. It’s a great place to answer any questions the public might have about what you’re doing.
Managing these different social media platforms can prove tricky, especially while you are simultaneously trying to get a company off the ground. Ideazon has a proven social media skillset that can take some of the grunt work off your plate, allowing you to concentrate on other matters.