Crowdfunding is a practice of raising capital by start-up businesses, mainly through the internet. This type of funding brings together a community to fund a common project or business over the internet. In this type of funding, people come up with their business idea, set a fundraising amount and deadline for the same. Interested individuals could review the business plan and decide if they want to go ahead with the financing. Here are the steps described to get a crowd funding.
Choosing right website and knowing target audience:
There are a number of sites such as Kickstarted, IndieGoGo or ProFounder available for crowd funding purposes. Once an entrepreneur has chosen a site, then the target audience should be selected. Those who share the same interest or belong to a particular area could be the ones who will have an interest in funding a business.
Plan for the Middle:
Patrons are more excited during an early stage of the business and when it's nearing its end, but the middle stage or transition from beginning to end may make them dull. So, it's better to keep active right from the beginning to end.
Leveraging on social networks:
An entrepreneur might have to drive his target audience to the crowd funding site, as most of them might not be aware of your project. Therefore, use of social network channels, email marketing and communications would play an important role to do so.
Create Interesting Rewards:
Audience will come to help you only for best rewards. The success of crowd funding will depend on how exciting is the reward as there would be no motive for the crowd to finance a project if they do not get a profitable reward.
Keep on the campaign:
Work does not end along by pitching the project but to constantly attract audience on to your project page. Some of the projects that make to the site have featured projects only on the basis of traffic, page views, and number of funders.
Giving Due Acknowledgement:
An entrepreneur should always be willing to acknowledge those who gave their support when it was needed the most. Endorsement of help could be done in many ways such as liner notes or putting up their name on your retail space.