The Essential Guide to Crowdfunding
Want to know how to give your crowdfunding platform the best possible success? We have put together some essential tips for you to follow and implement to make your crowdfunding campaign more effective.
There are some very popular crowdfunding sites such as Indeigogo, Kickstarter and Seed Invest that have stolen the limelight and are recognised because of the great value they offer backers and investors. However, building your own crowdfunding platform can be pretty lengthy and challenging, especially if you are not too familiar with how they work.
Let’s take a look at some tips for helping you to build your platform and for ensuring it will become successful.
Attracting projects to your crowdfunding platform
There are obviously two sides to your crowdfunding platform – the projects and the funding source. You will need to attract a decent number of projects to your platform, but be careful to choose the most interesting ones to feature on your front page.
Putting interesting or unusual projects on your front page can intrigue potential investors and will make your projects look a little more unique to those found on other platforms. The idea is to pick those that would make a backer curious, but also very easy to understand. This means avoiding really weird and whacky projects that may serve to confuse a potential investor rather than draw them in out of curiosity or intrigue.
Putting your main focus on to those projects that are interesting, yet ultimately achievable in reaching their funding goals is also a good combination. When you start to build up a list of successful funding projects, then you will be able to attract more people wanting to crowdfund for their project. Showing proven results will help to persuade them to go with you rather than a more well-know platform, especially for smaller projects that risk becoming buried and lost in the mire on a much larger platform.
Attracting new projects to your platform can be encouraged through writing newsworthy success stories about those projects that you have successfully funded through your site. Keep an eye on your completed projects and take the time to write about your successes. Approach media sources and journalists that are keen to write about finance, business and crowdfunding successes. Build a good network of contacts and keep them well-fed with regular updates of all your successes.
Kick-start your platform projects with a call to action
Fining your very first projects to feature is a case of putting a call out to the public for their ideas. Most of the well-established crowdfunding platforms got off the ground by doing this, so it is a winning formula for you to follow too!
You can start off with small, realistic, easy to fulfil projects that you can use to further promote your platform with positive news about. There are lots of web entrepreneurs that are looking for small investment opportunities, so once you start to raise your profile and share you first success stories, the word with get around via networking groups. This can help drive curious traffic to your site and you will start to see more interest building from both sides of the platform – new project ideas and willing investors.
Once you start to build your audience, you can see your progress start to snowball. It is quite possible for you to attract enough investors to quickly complete small projects, so you can start listing larger and more ambitious crowdfunding projects.
Building a successful platform will mean that you will be generating a lot of interest from investors and new web entrepreneurs who will be more than happy to spread the word and promote your platform amongst their own contacts. Many web entrepreneurs will also have potential projects that they have been working on themselves, but may need a bit of extra funding to get off the ground, so eventually your platform can become self-perpetuating with a steady roll-over of new projects and matching investments.
Of course, all this can take a lot of time and effort. Building your own crowdfunding platform isn’t going to become successful and make your rich overnight. Nor will it be a short-term project to undertake, but with careful planning and dedication, you can engineer your project for success.
Leverage your investors
Don’t forget that as you continue to build your platform and add to your number of active investors, you will be building up a very valuable asset list. You can use your web entrepreneurs and backers as leverage to help promote your site. You can make your most positive and active investors your very own team of website ambassadors.
As you will have two sides to your platform, you will need to curate both investors and project initiators. You can help build both sides of your community by rewarding your website ambassadors and making them feel like part of your tight-knit team. They will then be happy to act as influencers for both investors and project initiators, both of which may already be present in their own business networks.
You will want to build your crowdfunding platform on a foundation of trust, so getting your team of ambassadors to act as advocates and promoters for your platform is the best step you could possibly take.
Build a creative development team
You will want to ensure that your crowdfunding platform is going in the right direction and has a set of short-term and long-term goals in place to meet. Building up a development team that has a creative vision of the future will be essential if you want to continue to steer your platform forward to meet your milestones.
Before you start to build your development team, ask yourself some simple questions to define what you want your team to focus on and which direction you want to take your business in the future. Do you know what type of apps you want for your platform? What can you afford to pay your development staff? Do you need to appoint a manager to ensure that deadlines are met?
Knowing the answers to these questions will allow you to ask targeted interview questions for potential new development team members. Making sure that you hire developers that are on the same page as you and understand what you want for your platform will make the day to day running of your business much smoother.
Choose your development team members wisely. Look for skilled developers that are innovative and understand how crowdfunding platforms work. Look at their track record to make sure that they met all of their targets and deadlines in their previous roles and are motivated enough to help you deliver a fantastic service.
Of course, while you are busy building your team and putting your plans into action, don’t forget that you can take the pressure off your team by outsourcing some of your essential every day admin tasks to a professional virtual office provider, such as ourselves. You don’t even need to spend money on renting an office space or workshop to start up your business. We can take care of your needs until you are in a position to settle into a bricks and mortar premises. Even then, you can save your staff from the distractions of answering the telephone or sorting mail by continuing to use our services.
If you need to hire somewhere to hold your interviews for your development team, then why not consider our meeting room hire! We have fully connected, unbranded meeting rooms that you can make use of for job interviews or team meetings, should your staff work remotely from home.
Structure your crowdfunding platform for success by starting with strong foundations and a good team of ambassadors and developers. Keep your backers and investors well informed and motivated by your successful projects. You could see your own platform stealing the limelight from the more well-established names in the not too distant future!