Seven Tips for creating a successful crowdfunding campaign
Crowdfunding is one of the oldest forms of investment that has existed in the market.
If we think about it, the IPOs offered by large corporations from tech companies, automobile manufacturers to oil and gas companies, everyone has always utilized these methods to raise finances to fund their projects and then the profits had been shared with the investors in the shape of increased share prices.
With the advent of digital economy and the introduction of concept of blockchain tokenization, this trend become even more popular.
Perhaps one of the biggest reason behind its increasing popularity is that these crowdfunding campaigns allow you to take your startup right to the customer without having to go to the excessive lengths of doing an IPO.
But there are a number of things that need to be kept in mind while creating a crowdfunding campaign to ensure that it becomes successful and generated the funds required. Here are a few tips to keep in mind;
Picking a platform
The first question that anyone looking to create a crowdfunding campaign needs to ask themselves is what is the platform that they want to choose for their campaign.
There are two obvious options to choose from;
a) borrowing money from investors and
b) asking the investors to buy an equity stake in your business.
The first method really only suits large organizations with developed business and continuous cash flows to keep paying the investors their money along with the percentage of interest that was agreed upon.
The second option suits starters more than the first one in which startups offer a stake in the business and ask the investors to buy into future potential without making any commitments.
The IEO method is more of a second option i.e. you are promising stakes in a business that might have potential in future, while an STO is more closely linked to the first one since you’re creating a digital twin of an asset of yours.
Setting up your business plan
No crowdfunding campaign is successful without a proper business plan put in place.
This is not only to convince investors to buy your token and invest in your company, but also to ensure that even after getting your desired funding and hitting the investment goal, you are always on your foot and make good use of that investor money.
A good business plan should include realistic sales forecasts and any expenses that the business might incur. In the case of a digital or crypto start-up, this business plan is usually presented through a whitepaper.
So an effective whitepaper stating your strategy in a comprehensive way is important.
Pitching the Right Way
Making a pitch is the most important part of trying to sell anything.
Getting investment through crowdfunding is the same as a salesperson trying to make a sale.
So it is important that you get it right. While in the case of most crowdfunding campaigns, you might not be face-to-face with your investor, but it does not matter.
Whatever medium it is that you choose to pitch your project to the investors, make sure that your pitch is appealing and captures the mind of the investor from the first moment.
While we do not necessarily believe that you should give out free stuff or free money in order to attract investors to invest in your business, we do believe that offering a small reward along with your offer can change the mind of reluctant investors.
Imagine it this way, if there are two startups of equal potential out in the marketplace and the investor is confused between the two, which one do you think is he going to choose? We like to think that the one offering even a smallest reward can get the investment.
A good example of this is offering an airdrop of the token during the initial offer phase. After all, no matter how much money people have, they always like free stuff.
Did you think we would forget the most important part? Absolutely not! Effective marketing is the backbone of any successful crowdfunding campaign.
Without effective marketing, it is impossible to bring investment to even the greatest of ideas and with effective marketing, we have seen the most ordinary of ideas getting the crowdfunding they needed to keep their business float.
So whether you’re selling a token or offering an IEO, make sure you devise an effective market plan, create good marketing content and target the potential customer that has the most chances of converting into a prospect.
Keep it Going
One common mistake that we have seen individuals or businesses make is once they have created a successful crowdfunding campaign, they stop marketing it and end up not reaching their goal.
In other instances, we have seen businesses reaching their investment goals but quitting right after that since that’s how far they had thought.
So a golden tip is to always keep going whether you’re in the early stages of creating your campaign, have already published it or are finding good investors.
The trick is to keep the marketing and other work going and making your mark in the market.
So if you are a start-up looking to go down this path, think no further! Join us now and utilize Netheru’s blockchain to build your own token and start raising funds.
Make sure you apply these tips to reach all your investment goals on time.