Crowdfunding Is Part of the Social Business Revolution.
Although the concept has been around since 1997, crowdfunding gained traction with websites like Kickstarter and Indiegogo. It evolved from a way for fans to support the artists they admire to a platform for entrepreneurs to fund their companies. As such, crowdfunding has revolutionized small business investing.
As a mechanism of social business, crowdfunding not only impacts the way entrepreneurs launch their businesses, it also impacts the way individuals feel about the products and services they consume every day.
Investing Makes You Feel Powerful.
The success of a crowdfunded business all depends on the individual investors. Most campaigns are funded by small to medium sized contributions. In some cases, businesses will not receive any of the funds they have raised if they do not meet their goal, even if they are only $5 shy of it. This means that every contribution, no matter the amount, is indispensable.
Individuals now have a more active voice in the marketplace, a voice that previously was only for the very wealthy investors. No matter how small the contribution, every person who participates in crowdfunding has some level of control over the new products and services that are introduced into the marketplace.
Crowdfunding Creates a Sense of Community.
Although crowdfunding contributions are individual, there is a sense of community built around shared interests. If people truly believe in a concept, they will encourage their friends to support the idea as well.
Many crowdfunding platforms allow investors to discuss the product right on their website. This allows people to network and build new relationships based on a shared interest. They’ll take their conversations to other social networking sites and maybe even get together in person.
This generates more buzz for your product and has the added plus of allowing you to gain insight into your target market.
The Perks are Great.
Crowdfunding is about more than social investments. It’s also a shopping experience. Every investment level on a crowdfunding campaign has perks. Sometimes these perks are the product being developed or a limited edition version of the product, V.I.P. access to launch events, name recognition etc… The retail value of these perks almost always exceeds the investment.
Giving tangible and innovative benefits to your investors is the best way to guarantee the success of your campaign. You may have an excellent product, but let’s face it, no likes to give without getting.
Developing the right crowdfunding packages requires research and time. Look at what your competitors are doing and take stock of your consumer. What else do they need? What would enrich their product experience? What matters to them? It could be as simple as offering a personalized version of the product or it could be that a higher end benefit is required.
To make sure that your crowdfunding campaign is successful, contact our c-leveled team for advice and innovative tips on engaging your investors.