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Crowdfunding: A Brilliant Idea by Blake Canterbury
DAY 26 CROWDFUNDING: A BRILLIANT IDEA
By Blake Canterbury
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Founder of beremedy.
@blakecanterbury
Crowdfunding is one of the most exciting things happening on the internet right now. Crowdfunding by definition “explains the collective effort of individuals who network and pool their money, usually via the Internet, to support efforts initiated by other people or organizations.” There are multiple crowdfunding sites with Kickstarter being the most well known.
My organization, beremedy, is beyond grateful to have successfully funded a campaign through Indiegogo a few weeks ago. It was an exhilarating 30 days, which confirmed our vision but was very chaotic at times. We didn’t fully understand the implications until it was finished. These five thoughts are crucial to understand before launching a campaign to save time, money, risk and reputation.
THE ILLUSION
The illusion of crowdfunding is that you have an opportunity to get money from complete strangers over the internet. The truth is, your friends and family almost always lead the funding and sharing. Typically, people have to see faith from someone else before they give to an idea. Friends and family are always the first to hear and if they put money in, when a stranger comes across your project there’s a better chance they’ll give. So think of it this way: do you believe in this so much that you would look your best friend in the eye and ask them for their money for this?
THE IDEA HAS TO BE GREAT
The market is becoming flooded. In fact, you have to apply and get approved to have a project on Kickstarter. Every day, inboxes are being flooded with people who are asking for money for great ideas. People have to choose the best ones to give to, and they will not give just because they know you. Your idea has to not only be great, it has to be better than others who will reach your target market.
YOU HAVE TO DELIVER
Don’t put an idea out to be crowdfunded if you are not 100% going to deliver. The beauty of crowdfunding is that you don’t give up ownership to an investor. However, you should be even more determined to deliver because of that. People are believing and trusting in you with their money they have worked very hard for. If you do not push your product out, you lose their trust. When you have another great idea later, they will be very skeptical to help you succeed again.
PLAN WAY AHEAD.
90% of the work has to be done before you launch your campaign. A crowdfunding campaign will be much more work than you ever dreamed. You need full strategy in place for how to market it, ongoing communication, delivering incentives, and your
voice. If any of these elements aren’t decided before you launch, you will lose time, causing you to lose money during the campaign.
REPUTATION IS AT STAKE
There is more at stake than just money for your idea. When you finish a campaign, there will be a new public perception of the idea. If you hit your goal, you have instant credibility. If you don’t hit your goal, people see your precious idea as something others don’t believe in. Unfortunately, your efforts after some time are seen as “they’re still trying to make it.” It’s imperative that the amount you are trying to raise is realistic and that you are willing to work as hard as it takes to hit the goal.
