It’s been over ten years since Kickstarter first launched. The platform gives everything from small businesses to creative projects the chance to get funding from any Tom, Dick, and Harry. But is crowdfunding still a viable option in 2020, or is it a thing of the past?
While it may seem like the boom that Kickstarter created has run its course, crowdfunding is still going strong on the internet. What first started as a cool way for niche video games and interesting consumer products to pave the way for a product launch is now larger than ever in 2020.
But as crowdfunding becomes bigger, it also becomes harder to navigate.
Choosing the right platform
When talking about crowdfunding in 2020, there isn’t just one platform that fits all. With different websites tailored to different needs and industries – choosing the right one can be the difference between failure and success.
While a specific crowdfunding platform like Seeders is great for startups looking for investment, a broader platform such as IndieGoGo hosts a diverse cluster of projects. Any entrepreneur, startup, or business owner looking to crowdfund a project needs to think long and hard about their target investors. It’s important to create case studies, take note of success stories, and observe other businesses that have already taken the path you are about to embark on. Ask yourself what you can offer investors in return for their support – this is incredibly important.
Use clever marketing
You can have the best pitch in the world for your business, but it won’t matter if potential investors aren’t actually visiting your crowdfunding page. And while you might get some attention just by being on the right crowdfunding platform at the right time, giving yourself the boost that you need to build your audience is crucial for success. There is already research out there that suggests that crowdfunding success is directly related to social media reach.
What I am trying to say is this: you need to get your crowdfunding project out there! It needs to be marketed as if it were already an actual brand on the market, with a lively social media and well-thought-out marketing strategy. There are marketing agencies out there that can help you with this. However you choose to do it, remember that marketing is crucial.
Remember the risks
Let’s say you choose to go with a crowdfunding platform using a reward system, like Kickstarter. As you write out your plan, you get generous with the rewards for the high-paying investors. I mean, why not? They’re investing more than anyone else, right? Well, as anything goes, you need to be realistic, and with a crowdfunding campaign, it can easily go wrong. Are the rewards unbalanced? Are you prepared for what will happen if you miss your goal by just a couple of percent and have to start over? Crowdfunding might be the alternative route to get the investments that you need for your business, just don’t treat it like a cheap and easy shortcut.
There are many reasons why you should use crowdfunding to kickstart your business. The points mentioned above are just some of the aspects as to why crowdfunding can transform your business from a garage-project that nobody wants to invest in, into an internet success. And as crowdfunding platforms become more diverse and specific, with more and more investors just waiting for the right business to emerge, remember that you not only need to identify if crowdfunding is the right way going forward for your company but that you need to have a business plan ready. Crowdfunding might be an internet thing, but this isn’t a funny clip posted on Youtube, waiting to get viral. It’s the future of your business.