Are you looking for creative ways to raise money for your business or project? If so, crowdfunding may be the answer. In this article by Abdul Waheed Zafar, he will share five tips for raising funds from crowdfunding.
If you are going to start a crowdfunding campaign, you may wonder how you can raise funds quickly. In this article, we are going to talk about some crowdfunding tips that may help you collect more funds for your startup. Based on the type of platform and campaign, you can tweak and adjust these tips. Read on to find out more.
Tip #1: Do your homework
This tip may work for you only if you have enough time to prepare for these campaigns. Generally, it takes around 11 days to do the homework and get ready for the launch of this campaign. Based on your fundraising needs and campaign type, your time requirement may vary. Given below are some tips that may help you get ready:
• Get the best fundraising advice from the internet
• Opt for the best crowdfunding platform
• Consider other successful campaigns
• Find out how to ask for donations
• Decide if you should organize an event
Tip #2: Ask For funds Early
If you think you just need to launch a campaign page and funds will start pouring in, you need to think again. In the US, there are more than 200 crowdfunding platforms. So, what are the chances of your campaign being found?
So, what you should do is promote the campaign the same day you launched it, which will help you set yourself apart from the crowd. According to statistics, around 50% of startups collect most funds during the first and final 3 days of the duration of the campaign.
You can use the in-built sharing mechanism of your crowdfunding platform to get the word out about your startup. This may include Twitter, Facebook and email, to name a few.
Tip #3: Look for prospective investors
Look for investors who may be willing to provide funds for a certain cause. For instance, if you know a relative, neighbor or colleague who has lost a family member to cancer, chances are that they may be willing to provide funds for a cancer research campaign.
Tip #4: Be Clear about where the funds will go
If you want your prospective investors to trust your crowdfunding campaign, we suggest that you be clear about where the money will go. It’s even better if you be as specific as possible. By keeping your investors informed about your campaign, you can build their confidence and they will continue to invest more money in your startup.
Tip #5: Offer Incentives
For investors, incentives work like a charm but they work for specific campaign types. The good news is that crowdfunding campaigns are more successful when it comes to creative projects and adventures. Listed below are some popular incentives you may offer to your prospective investors:
• Free tickets to a game, concert or show
• Media shout-outs
• Handmade crafts
• Caps and hats
In short, if you follow these crowdfunding tips, you will be more likely to raise a lot of more money for your start-up.