What is crowdfunding?
Crowdfunding is a form of online finance for
innovative and humanitarian companies, projects and people. Crowdfunding comes
in many different formats and purposes - but the overall similarity is the process of collaborative funding often on crowdfunding
platforms, which bring together the supporters with the recipients of
Despite the substantial personal element
in every crowdfunding campaign, there are a number of useful tips&tricks
that can not only point you in the right direction, but can make your campaign a
successful one. The crowdfunding process
consists of three phases:
Definitely, the most important phase is the
pre-campaigning phase because it defines your campaigning foundation.
Everything you do and plan in this phase, you will implement in phases to come.
Sound foundations are everything.
TRY will produce a range of tangible results, among which the most important are:
Define your goal, budget and business plan
Make sure that your crowdfunding goal aligns with the campaign. It’s simple: you ought to know how much money do you need before you ask for it. You need at least two things for that. First one is a detailed business plan for your business, cause or invention. Furthermore, you must note that campaigns have their own costs - video production and post-production, PR services, content writing and similar. These costs can be significantly lowered if you do the second thing and…
Build your team
Despite popular opinion, it is very hard to pull a successful crowdfunding campaign on your own. You will need a team of at least 3 or 4 people who focus on their specific tasks and see them done as well as possible. Look for people with specific skills that you need for your campaign.
Define your target groups
Target groups have their characteristics: demographic, geographic, psychological and behavioral characteristics. Your campaign needs to be adjusted for them in every aspect. Your marketing mix after the campaign needs the same elements: product, price, place and promotion
Choose the platform and model of crowdfunding
Explore the platforms available in your country and analyze whether your cause matches the type of platform (it can be dedicated to humanitarian projects, music, innovations etc.). Also, choose your
crowdfunding model. There are four of them: reward-based, donation-based, lending-based and equity based campaigns. Choose the most adequate model of crowdfunding for you. It will probably be the most popular one: reward-based crowdfunding :)
Produce a video and build a communication plan
Video is one of the most important aspects of your campaign. Keep in mind that the attention span online is really short! Try to
keep the duration of the video below 3 minutes if promoting a reward-based campaign. As for the communication plan, it also depends about your target group and it is very important for your campaign page. Update your page and social media regularly after the launch!
Build your perks (only for reward-based campaigns)
Perks are rewards that motivate your backers to donate. You need at least 5 of them, but no more than 10. Perks need to be attractive, adjusted to your audience and logically priced and placed. Offer a few for small donations, a few for medium and one or two for larger amounts. Be creative.
Soft launch (The 30%)
Soft launch is also in a league of most important aspects of a crowdfunding campaign. Launch your campaign with 30%
out of your final goal already pledged. This way you give legitimacy to your campaign. Your target audience for the first third are your closest friends, family and fans. Engage them.
These tips&tricks can help you start thinking about your campaign plan. But we recommend that you seek more help and advice on the internet or from friends and experts who have already run crowdfunding campaigns.
Important thing to remember: crowdfunding is both easy and hard. It is easy to start it, it is hard to do it well. So don't take it lightly, but don't be discouraged if you try and don't succeed the first time - that's perfectly normal.
Organisation Are You Syrious? raised over $5000 to ship 10 tons of donations to refugees in Greece. After this they organised several other campaigns with a help of community of supporters that they gathered during their volunteer work.
Click here to check it out.
Social enterprise Brodoto launched this campaign in the wake of the opening of Balkan route. Its goal was not only to raise funds (more than $13,000 raised), but to make general public more sensitive to the plight of refugees.that refugees include women and children.
Click here to check it out.
One of the most popular campaigns raised over $190.000 for a father who was selling pens to make a living for himself and his daughter.
Click here to check it out