Crowdfunding and Marketing. A recent report by Clarity.
Late last year I completed a research project for a client that was interested in crowdfunding. It occurred to me that others might get some value from this research and my experience raising money via the crowd. You can download the report below.
The power of the crowd is shaping up to be a valuable tool for entrepreneurs. If/when the SEC decides to let people crowdfund for equity, I believe it will finally become a viable tool to raise capital.
My experience with crowdfunding and my research tells me that success is predicated upon a sound marketing strategy. You’ll need to create your program to reach far beyond your friends and family if you are attempting to raise any real money. The most successful crowdfunded projects embarked on significant marketing and promotion campaigns. In other words, they didn’t just rely on word of mouth – they pulled all the levers, from publicity and email marketing to live events, social media, phone calls and more.Don’t forget, no matter how altruistic your project is, you need to answer the question “What is in it for me?” Sure, your mom will contribute for just the feel good part of the deal. But to motivate thousands of contributors to pony up means offering good incentives. This is very much a central principle in direct response marketing. You want to always reward people for their willingness to act.
Most people know that a video (or series of videos) is one of the most crucial aspects of a successful effort. It’s more important to tell a compelling story than to have a highly produced video. Although it is important to use proper lighting and audio so people aren’t put off by very low production values. Finding a balance is the key to keeping it affordable and getting maximum impact.
Learn more in the downloadable report below.
|Download the Report