Does crowdfunding need supporters before launch?

Developing a new project or launching a new startup requires money, which in many cases we don’t have. So one of our first tasks is to raise money for our project. Luckily today there are many ways to raise this money, such as getting a loan from a bank, raising capital from family, friends or investors, and a relatively recent trend called crowdfunding.

In recent years, crowdfunding has become a powerful tool for people to develop their projects, not only because it allows them to raise the money they need, but also because it creates an audience, validation, and traction for projects and startups. Imagine combining capital raising, market research, go to market strategies, and marketing – and you get crowdfunding. 

However, one of the myths out there about crowdfunding is that you just slap up a campaign and the money will come. The secret to launching a successful crowdfunding campaign involves investing heavily in pre-campaign lead generation. Before launching your crowdfunding campaign, spend a significant amount of ads to collect leads who want to know when your product launches are important to make your campaign successful.

Crowdfunding is really about a “tool to work your network.” Before you launch a campaign, you need to put in the time to cultivate your network to ensure they are ready to be responsive. Everyone will be at a different stage for this: some of you already have a network that you communicate with regularly, while others of you will need to invest the time to build the network before you can launch.

Campaigns that get more than 30% of funding in the first week are more likely to succeed. This means that you need to have backers in place before your campaign goes live. Whether it’s family members, previous business partners, or a select member of your entrepreneurial inner circle, gain a commitment prior to launch and follow up personally to ensure they follow through.

A good networker is always thinking about what they can give to others without asking for anything in exchange. Most people won’t do something unprompted, and it’s important to create a foundation of trust before asking for something. This means taking the time to build a relationship with your community of potential supporters.

To build your own audience and make your crowdfunding successful, you’ll need to dedicate some serious time to marketing and public relations, both before and during your campaign. There’s no reason to wait until you go live before reaching out to press and influencers. Your campaign will do much better if it gets strong coverage and support within the first few days of its launch.

Use every method available to get news of your campaign out. Social media posts for your followers, sponsored updates (paid ads on social media), and email blasts are three great ways to get started. Build interest before the campaign starts, so that people are ready to jump in when you launch, and post or email regular updates leading up to a strong finish. Each update should include a strong call to action to encourage the reader to take the next step, whether it’s to share the post, comment, or click to invest.

These are the people you need to care about your cause and want them to take action when you ask them to, so don’t take for granted that they will do so without investing in a trusted relationship first. Generate excitement and buzz before you launch your campaign. That way, on the launch day, you’ll already have supporters interested in your campaign.

Many businesses will also privately launch their campaigns to a select group of likely backers and only open their campaign to the public when they have reached their 30% funding goal. While friends and family are willing to support you early on, the rest of the world wants to feel like they are joining a successful movement.

Crowdfunding is a lot of work, but can be extremely rewarding for the financial and marketing gains. Are you considering starting your crowdfunding? If you want to know more about crowdfunding, consult us to assist you to kick start!