The use of crowdfunding has skyrocketed during the past years as the increased number of launched and successfully completed campaigns proves the effectiveness of the concept. By using the collective effort of different backers, more and more entrepreneurs get the opportunity to secure funding for their startups and to take their ideas to the next level.
Of course, not all projects reach their goal, but the good news is that there is always something to be learned both from success and failure. After looking closely at dozens of campaigns and studying their performance on Arikovani, we have summarized the top 5 do’s to follow and the top 5 don’ts to avoid that can make or break your campaign.
Do tell your story – Good stories are a great way to excite your audience, to keep them interested and to motivate them to take an action to support your project. When you put together your video, stick to the fundamental elements of impactful storytelling for the purpose of crowdfunding success: What inspired you to begin the project?, How is the product developed?, What is the value that it brings?, and so on.
Don’t miss the mark: In the best interest of your crowdfunding venture is telling a story with a purpose. Keep the storyline on point and include all elements that will be of significant importance to your audience. Avoid including too much or non-related information as it may lead to the opposite of the desired effect. Focus on what matters and keep it simple!
Do highlight the value: When introducing new technology, it seems difficult to explain it to the target audience solely by using technical terms. In order to showcase the product in more effective way, focus on highlighting the value you bring to the table. Help your supporters understand better how your product will make the lives of others better. Emphasize on the way your product makes a difference!
Don’t promise more than you can provide: Try to be realistic in the promises that you make to your backers. Make sure that you have a clear execution strategy to back everything you say that you will do after the completion of your campaign. Don’t promise more than you can deliver just so you can raise the money you need. Crowdfudning is about mutual trust and support – be genuine.
Do have various price range perks: The way you price your perks can affect tremendously the outcome of your campaign. When you set the rewards list make sure that you include different types of perks that can be of interest of different groups of supporters. Here is important to remember that low-cost perks attract more backers, but the high-cost rewards are what will quickly lead you to fulfilling your final goal.
Don’t ask for too much money: Understand well your funding needs before you set the final amount for your campaign. Make sure that you know not just how much money you need, but also that you have a clear plan of how you are going to spend it. Don’t set the asked amount too high as high expectations can be the reason not to achieve the final goal.
Do show how your product works: Having a working prototype is one of the main criteria that have to be covered in order a project to be featured on Arikovani platform. To help your supporters get a better perception of the way your product works, show it to them in your video. By visualizing the way the product is used, you are to get more people interested and more people willing to get their hands on the product.
Don’t forget to plan ahead: Creating a prototype of your product is a big deal! Congratulations! But this is just the beginning of the whole venture. It is important to have detailed plan and strong execution strategy that will present in detail all the steps that must be taken in order to get your product to the market.
Also, always look for chances of improvement: The feedback that you are to receive from your audience will help you to determine if you can make the product better, can help you get rid of some major flows or to emphasize on the stronger features on your product. Don’t underestimate the power of planning ahead and the importance of developing an execution plan with short and long-term goals.
Do follow up after the campaign is successfully closed: Crowdfunding is about being social and keeping the dialogue with the supporters alive. Don’t make the mistake to leave your backers hanging after your campaign is successfully completed. Create a Thank you! video to express your gratitude for the support that you have received and to share with your supporters information about the future steps that are to be taken for the purpose of delivering all the perks.
Don’t spam: Having a vivid dialogue with your supporters and a strong social media presence is essential for the success of the campaign. Providing regular updates to your supporters about the progress your campaign is making or the challenges that you are facing is very important. When you give more information, make sure that you do it in the right way. Don’t spam the feeds of your backers with constant posts and updates about your product, because they may get annoyed and can give up on following you.