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.
And here is how the Manoush team, winners of SBIC, prepared their crowdfunding campaign. If you want to find out more about how they prepared and won SBIC, please find it in the Challenge section.
Manoush story starts long before their application to social business idea challenge. They had the idea, the team and initial arrangements in Belgrade where they plan to open their first in chain of bakeries across Europe. The only thing that was stopping them in achieving their goal was the money. And how to get it. That’s where Together: Refugees and Youth project and crowdfunding kick in. With great pitching skills and even better idea, they won our social business idea challenge! Manoush was awarded with professional help from our team who guided them in pre-campaign period. Although this period may seem less important, it is actually crucial for every crowdfunding campaign. Here, we had to get them ready for every little aspect of their future campaign. And there was a lot of work to do.
First, they had to identify who their targeted audience actually is. No one from the Manoush team lives in Serbia, and they had harder time achieving that goal than most of the campaigns - they had to do it remotely. We had to identify their characteristics - where do they live, how old are they, how much do they earn, do they tend to back crowdfunding campaigns, etc.
Then, it was time to figure out through which channels to reach them. This is very important for your campaign’s visibility, and ultimately, it’s success. When we figured out who we actually need and where to get them, it was time for even harder part - the content. Your communication strategy, Indiegogo page updates and especially your video - have to be thoroughly adjusted to your target groups in it’s every detail. Manoush team had to write different scenarios for their video, and Brodoto had to point their traits and flaws. This is a process that can last for quite a bit and is hard to be fastened, so the general advice we can give is to plan it in front because you have to take your time in these kinds of creative processes.
Manoush also had to turn on their creativity with perks (crowdfunding rewards). They had to choose attractive, funny but affordable perks that their target groups would like. Sounds easy, but that is also a lot of work. As it was said before, Manoush had it’s team members, but they did not have their detailed roles. This aspect is also very important in order to get a good flow for your campaign. In pre-campaigning period they had 3 key persons - campaign coordinator, design, video and media manager and logistics manager.
Every single crowdfunding campaign has certain strategy elements that just have to be obliged. Alongside our expert assistance, Manoush prepared aforementioned elements of their campaign using the Crowdfunding Campaign Strategy template. This is a step-by-step guide that is useful for almost every crowdfunding campaign, and it is free for you to use! You can also find additional comments that will help you making your own strategy even better.
The whole story of our collaboration is obviously much longer, but this will give you an idea of how much work actually lies behind a campaign. Nevertheless - the more you work, the more chance to make a successful campaign. This is how Manoush made their successful campaign ready for launch!
In the end, each and every crowdfunding story is a different one. If you need more information or if you have an idea for crowdfunding and you need advice, contact us through Crowdfunding Q&A Expert Assistant Form.
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
You have an idea ready for crowdfunding, but you feel unsure on how to proceed? We provide you with expert assistance related to crowdfunding in no time! Just fill out the Crowdfunding Q&A Expert Assistant Form, ask the question and get your answer in no time!