QUESTION: WHAT’S YOUR #1 TIP FOR RAISING YOUR TARGET FUNDING AMOUNT USING CROWDSOURCING?
“Kickstarter and Indiegogo have provided a huge platform for companies looking for pre-sales because they provide huge value for the person funding the project. If you can produce something that others want, then promise your funders early access to your product, and they’ll be thrilled to give as long as they get something of value in return.”
“Every time I hear of a successful crowdfunding project, it’s being promoted via a very detailed informational video. First and foremost, the video must introduce the entrepreneur, tell his/her story, and summarize the problem they are solving. The better the quality of the video, the more it will look like you care about your initiative — and that’s what people want to get behind.”
“While crowdsourcing is an interesting idea that definitely works, the number of companies that are able to rely solely on crowdsourcing to obtain significant funds is still incredibly small. So, companies should not count on crowdsourcing as a primary source of funds, or spend too much time on it to the detriment of other funding strategies.”
“With the proliferation of companies raising money with crowdsourcing, it’s becoming tougher to make a case that you have the product that folks should back. At a baseline you need a compelling story, but beyond that, people always want to back a winner. Build momentum by soliciting backers before you launch your campaign and have them donate early on, as an indication of quality!”
The Young Entrepreneur Council (YEC) is an invite-only organization comprised of the world’s most promising young entrepreneurs. In partnership with Citi, YEC recently launched StartupCollective, a free virtual mentorship program that helps millions of entrepreneurs start and grow businesses.