Think crowdfunding is just for the quintessential bootstrapped entrepreneur struggling to scrape enough cash together to get out of prototype phase? Think again. Particularly with the recent passage of Title III of the JOBS Act, more and more well-established brands and businesses are considering crowdfunding campaigns as an alternative equity raise, for market validation, and effective, far-reaching publicity.
After running (for others) many of the most successful crowdfunding campaigns in Texas and beyond, and in the throes of yet another six figure fundraising success – a Kickstarter (http://kck.st/1fE56dp) campaign ending in mid-March – proves if you have a desirable product and promote it strategically, Crowdfunding works. Here’s how to optimize a crowdfunding campaign for success.
First, determine which platform is best. There are now more than 450 (!) crowdfunding platforms available, many niche to specific industries, some just for equity-based campaigns, and most for rewards-based (that simply means there’s a product received in return for the money put in) campaigns. A multitude of articles have been written on which platform is best, but it’s undisputed that rewards-based Kickstarter is far and away the Goliath.
Once the platform is chosen, here is a quick laundry list of both unusual and steadfast crowdfunding best practices compiled from our experience across multiple crowdfunding campaigns on various platforms, studying what works and what doesn’t on hundreds of others. Applied together, these tactics and approaches should more than triple the chances of success:
No one knows the industry/product/company better than the CEO. Having some help can drive unique angles and get coverage in a notoriously noisy space to free up time and may make the difference between failure and success.
Bill Leake & Jennifer Gooding partnered to run The Right Arm Kickstarter campaign and contributed this article to provide guidance to other CEOs considering crowdfunding.
Bill Leake is Founder & CEO of Apogee Results, one of the leading online marketing firms in Texas with clients in private-equity, venture capital, and publicly-traded firms.
Jennifer Gooding is Principal of Prime-techpr.com, returning millions of dollars of ROI in major media coverage every year for clients, including some of the most successful crowdfunding campaigns in Texas. Both may be reached through LinkedIN.
Jul 08, 2016 Comments Off on If You Build It, Will They Come?