How to Raise More Money With Crowdfunding Sites
Here are 10 great out-of-the-box ideas for how to raise more money with crowdfunding sites:
Given the iffy laws surrounding internet investing, crowdfunding sites have almost become a way for entrepreneurs to substitute for investing. This article looks into some of the proven techniques and strategies you can use to raise more money with crowdfunding sites. Because if you’re a startup, chances are…every dollar counts.
1. Have 5 Year Financial Projections for Your Startup
Crowdfunding is no longer about donating money. It’s about people making an investment in your startup. If you are crowdfunding for a startup, recent changes in the bill are requiring you have financial projections ready for your funders. Try a DIY financial package made just for startups (same ones investors use), like EZ Numbers. It includes revenue/cost projections, and automatically calculates things like founder’s shares & taxes (that’s why they call it EZ)
2. Tell a Story with a Passionate Cause
If you think about the people who actually help fund startups and causes on crowdfunding sites, they get very little physical rewards out of it. The true reward of crowdfunding sites is often helping those in need with a passionate cause. So tell a good story, identify who it is you’re relating to. Have they walked in your shoes? What’s going to strike something deep down inside of them to fund your cause? Startups with this passionate cause raise up 4x more money with crowdfunding sites. Another tip on this, don’t be afraid to get a little edgy like this one that has raised $41,000:
3. Consider Hiring a Marketer or Promoter
Non-profits hire marketers to help them market a social fundraising campaign, why not do it to raise more money with crowdfunding sites? Yes, chances are if you’re crowdfunding it’s because you don’t have money. But like all things business, whether non-profit or for profit, it takes money to make more money. It’s also good to note, many marketers and promoters will work on commission if your story and perks are good enough. Now that’s an idea for you.
4. Leverage Your Own Social Media Networks
(If you do not have your own social media networks, skip to #4 for an alternative idea with social media). Alot of the campaigns, entrepreneurs, and startups that raise more money with crowdfunding sites; raised it from those they know personally. These are your strongest allies for raising more money. Also, look to them as brand promoters.
5. Pay a Blogger to Tweet About Your Crowdfunding Site Campaign
At buysellads.com, you can actually pay a prolific blogger to tweet something for you for as little as $5. That may be a great investment considering the fact you can reach up to 20,000 people for less than the cost of a sandwhich. Not only that, but most bloggers are well-respected, well-listened to, opinionated people. It’s because they’re out there, and have credibility.
Heck, if you really want to go big..for $4,600…you can even pay Paris Hilton to tweet about your fundraising campaign…
6. Post a Personal Video on Your Crowdfunding Site Campaign
Not a professional video, a personal video is the best for raising more money on crowdfunding websites. We’ve seen personal videos, combined with that passionate cause or story, raise up 75% more money with crowdfunding sites.
7. Provide Unique and Relevant Perks
Perks are physical rewards that funders get for donating to your cause. Look around at the other fundraising campaigns on the crowdfunding site, how are yours different…how are they unique? Do they have a special meaning? Are they inline with your cause, the market you plan to reach? Asking yourself these questions will help your crowdfunding campaign tremendously.
8. Acknowledge Funders
If you are out there in the social media world, or you believe what you’re doing could change the world…make sure to promise to give credit to these people. That in itself is a fantastic perk for most people, as well as other small businesses & startups. It’s the same reason why funders give sponsorships.
9. Give Away Early Passes for a Free Product or Service
If you’re campaign on a crowdfunding site is for an early business or startup, consider giving away a pass for a free product or service once it’s ready. Or if you have a membership model, consider giving away a lifetime free. it’s the same type of perk many angel investors enjoy in investing in restaurant businesses or golf courses, the added bonus of “It’s always free for me here”.
10. Choose the RIGHT Crowdfunding Site
To raise more money with crowdfunding sites, don’t always look to the largest. Look for the crowdfunding site that has a higher potential of funders interested in your cause, project, or startup. In this specific case, going niche may raise you up to 30% more money. For a more in-depth look into great crowdfunding sites for entrepreneurs & startups, read Our Top 10 Crowdfunding Websites for Entrepreneurs.
and last, by not least:
11. Let Funders See You in Action
Take your efforts outside the crowdfunding site for funders to see what you’re out there doing. A crowdfunding campaign without proof that this product, service, or startup really exists is toast when raising money. Keep funders updated on milestones, this includes an action plan about where the money is going.
Good luck, and I hope to see you raise more money with crowdfunding sites soon!