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A tale of two entrepreneurs: My pal in New York wanted to make a documentary film but didn't have enough money. He had heard about crowdfunding and so decided to give it a shot. He made a quick video about his movie and threw it up on Kickstarter. "I figure people will definitely donate the money I need if I give them an Associate Producer credit, right?"
Wrong.
Then there was a colleague of mine, who wanted to launch a food cart in Portland, Oregon. He, too, opted for Kickstarter, but was much more methodical about it. Yes, he created a video, but a solid one.
He also cultivated a great list of people to pitch to once he launched his campaign. And he thought carefully about the rewards people would get, creating tiers that made sense. He put three months into his campaign before he ever posted it on Kickstarter, and even then, as he told me later, "I worked it. I treated it like a marketing campaign."
Guess which entrepreneur met his funding goal?
So yes, there is a right way and a wrong way to go about crowdfunding the dream. Here are the do's and don'ts:
It should be no surprise that people will be much more likely to invest their energy and money into something that they see solves a problem, especially if it is a problem that they have. Potential backers will stay away if your vision is too muddled or abstract.
A product that stands out due to its innovation or uniqueness has a higher chance of attracting attention.
My food cart friend intuitively had the right idea. Thoroughness and forethought are needed throughout every phase of your campaign, but especially before launching. Before launch, you should be doing plenty of marketing to your tribe and target audience via email and social media--regularly sharing ideas, prototypes, sketches, your mission, etc.
Getting your audience excited ahead of time and wanting to be a part of your solution is what works.
Successful campaigns have a compelling, engaging, well-crafted story to tell. This includes explaining the project's purpose, why it matters, and how it will make a difference.
A lot of Kickstarter campaigns make the number one mistake of setting their funding goal much too high, thinking that it reflects their drive and passion. Yes, you should be proud of that drive, but your funding goal needs to be more strategic.
Your Kickstarter goal should reflect your actual funding needs, and should also be an amount that you think you can reach. People feel much more confident investing in something that looks like it's already winning, so if your page reads "200 percent of goal," you are sure to attract more potential backers than if it says "27 percent of goal."
A campaign page that lacks clarity, engaging visuals, or a compelling narrative will deter potential backers. And, as indicated above, don't skimp on your video. The video is a crucial element in the campaign. It should effectively communicate the project's story, goals, history, and the value of the product.
Relying solely on Kickstarter's platform for visibility is a mistake. Successful creators actively market their campaigns through social media, email newsletters, and other channels to reach a broader audience.
Your crowdfunding project should be your first priority, and you and each team member should be spending enough time to ensure its success. People are not just going to give you money because you posted a cool video on Kickstarter; that's not how it works.
Perhaps the most crucial element of this prioritization is prioritizing your backers and potential backers. If you do your campaign right, your inbox will be overflowing with questions and introductions. You need to promptly respond to those queries in a personal, informative, and transparent manner. Give folks regular updates. Get your rewards out the door on time. Respond to requests for additional info.
The key here is to act in such a way that backers will want to take a chance on your vision. Do that, and they will help you, well, kickstart the dream.
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