Everything You Need to Know About Crowdfunding Marketing

Crowdfunding is a good way to raise money for your small business. But not all crowdfunding campaigns meet their funding goals. Only a few successful crowdfunding campaigns, which make the best use of crowdfunding marketing, raise capital as they intended.

If you want to raise money through crowdfunding, this crowdfunding marketing guide can help you meet your funding goal. Let’s dive in.



What Is Crowdfunding?

Crowdfunding, as the term suggests, is a way to raise money from the crowd. In this process, a large number of people contribute small funds to a business cause.

Investors, depending on the type of crowdfunding, will either make smaller contributions charitably or receive equity or other rewards based on their contributions

 

 

What Are the Four Types of Crowdfunding?

Here are the four types of crowdfunding for raising capital:

1. Rewards-Based Crowdfunding

In this type of crowdfunding campaign, a business offers rewards like early access to its product/service to investors in exchange for their contributions.

2. Equity-Based Crowdfunding

In this small business financing option, investors receive a small amount of equity in the small business in return for their fixed funding.

3. Debt-Based Crowdfunding

Debt-based crowdfunding makes businesses repay funding money to investors in a predetermined time. Investors may or may not receive interest on their contributions, depending on the terms and conditions of the campaign.

4. Donation-Based Crowdfunding

In this type of crowdfunding, investors donate a small amount of money to a business cause without expecting anything in return.

What Is Crowdfunding Marketing?

Crowdfunding marketing is a marketing strategy businesses employ before, during, and after crowdfunding campaigns to succeed. Well-thought-out crowdfunding marketing campaigns can help small businesses reach more potential investors to get monetary support and meet crowdfunding objectives.

Why Use a Crowdfunding Marketing Strategy?

Here are key reasons why you should use a crowdfunding marketing strategy:

  • When you promote your campaign, your reach a large group of people, increasing the chances of your business getting funded
  • A powerful marketing campaign can help you create relationships with your audience
  • Creating and running a crowdfunding marketing campaign offers you opportunities to engage with your community, which can foster trust and confidence

Also, crowdfunding marketing campaigns leverage social media, email marketing, and other marketing avenues to maximize the success of your crowdfunding.

Strategies for Successful Crowdfunding Campaigns

The following are proven strategies to make your crowdfunding project successful:

1. Build an Audience for Your Crowdfunding Marketing Campaign

The success of your crowdfunding campaign largely depends on the size of your audience who believes in your business venture. So you should start building an audience for your crowdfunding marketing campaign in the pre-launch stage.

Create a buyer persona for your ideal audience and start finding such people. Social media can be a great place to start. Being active in relevant groups on Facebook, LinkedIn, and Reddit can help you find the right people who believe in your crowdfunding project.

2. Construct a Timeline for your Crowdfunding Promotion

Promotion for your crowdfunding works best when you create a timeline for your campaign, for a timeline will keep your team members on the right track.

A typical timeline for crowdfunding marketing includes building your audience, testing your launch, launch of your marketing campaign, and post-campaign updates.

3. Design a Landing Page on the Crowdfunding Platform

A landing page plays a crucial role in crowdfunding marketing. A landing page can help you build an extensive email list in the pre-launch stage.

Make sure the landing page has the following elements:

  • Strong, clear call to action
  • Visual content to keep the target audience hooked
  • Clear, concise, persuasive copy
  • Responsive design

You should also include sharable social media links on your landing page so that your audience can easily share your campaign on social media platforms.

4. Create Content and Messaging for Your Audience

Content is king in all forms of marketing. To create engaging content that delights your audience. A good story has the power to move people. So make sure you use storytelling in your content.

Some effective content types for your crowdfunding marketing campaign include but are not limited to:

  • Blog posts on your website
  • Guest posts on relevant websites
  • Social media videos
  • Webinars and podcasts

Instead of keeping the spotlight on yourself, focus on how the crowdfunding campaign can benefit your audience.

5. Promote Your Crowdfunding Campaign Via Social Media Channels

Social media is a powerful platform to promote your crowdfunding campaign to a large audience.

Here is a step-by-step process to promote your campaign page on social media:

  • Pick the right channel (Facebook, Twitter, Instagram, LinkedIn, etc.) where your audience hangs out
  • Choose the appropriate hashtag for your campaign
  • Plan a social media content strategy (including informative, engaging, persuasive posts)
  • Track results and tweak your strategy to improve results

Roping in relevant influencers can catapult the reach of your campaign. So you should consider including influencers in your social media promotion.

6. Gamify Your Campaign to Raise Awareness

Applying gamification tools to your campaign can increase the engagement of your community, thereby increasing awareness of your crowdfunding project.

Here are some popular tools you can consider using in your campaign:

  • Fundraising progress bar
  • Leaderboard for the top investors
  • Badges and trophies
  • Prizes and incentives (tangible items or virtual passes)

7. Employ Email Marketing Strategies

Email marketing is one of the cheapest marketing strategies to promote your fundraising campaign. In the pre-launch stage, you can experiment with your email campaigns to check what works best when you collect emails from your audience.

Here are a few tips that can help you succeed in email marketing:

  • Write clever body copy to appeal to the human interest
  • Include social sharing links in your emails to enable the audience to share your campaign
  • Leverage the power of animated video and visual content
  • Use a powerful CTA in your emails

You should also take the help of email marketing tools to run a campaign. Analyze outcomes to make necessary changes for getting better results.

8. Provide Product Demos to Promote Usability

Offering product demos can encourage more people to fund your venture. This is because product demos let your community experience how good your product is. So include product demos in your crowdfunding marketing campaign.

If users allow, you can create videos of them using your product and share them on social media. Doing so can encourage more people to invest in your crowdfunding campaign.

9. Attend Events to Increase Your Audience Base

To run a successful crowdfunding campaign, you should start attending events relevant to your industries to increase your audience base. Research the web to find relevant online and offline events where your potential investors are likely to be present. And figure out ways to participate in those events.

Podcast interviews, video interviews, and online conferences are a few popular events you can explore to increase your audience base.

 

 

How Much Do Crowdfunding Agencies Charge?

The crowdfunding fee structure varies from site to site. Crowdfunding agencies usually charge 5-10 % of all funds raised. Depending on the crowdfunding platforms, you may also have to pay due diligence fees, payout fees, or other charges.

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Image: Envato Elements


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