Effective Crowdfunding Techniques

Written by: Samuel K. Burlum, Investigative Reporter And author of The Green Lane, a syndicated column Published on 5/22/18, a SamBurlum.com Exclusive

Tags: Business, Community, Crowdfunding, Economy, Entrepreneurship, Finance, Small Business

Source: When it comes to raising money for your business online, there are several platforms available depending on your business’s value proposition, but getting an audience to review and take action in becoming a donor is the more difficult goal. Here are a few of the most effective techniques that will assist your business with its crowdfunding goals.

Kickstarter, Indiegogo and GoFundMe are three of the most popular fundraising platforms for pre-launching a unique value proposition online. The most popular campaigns consist of book projects, market disruption technologies, and other products designed to satisfy a need or solve a problem. Hundreds of entrepreneurs have utilized online crowdfunding platforms to get their offering to market. Not every campaign launched is a success. Some of the latest and greatest well thought out ideas sizzle out due to the lack of integration of methods in promoting the campaign itself and/or lack of audience engagement. Here are a few of the most effective crowdfunding practices that can enable your campaign to be a bigger success…

1). Set reasonable goals. Not every crowdfunding campaign will be able to sell out every perk and end up with millions of dollars at the end. It is better to set reasonable and obtainable financial goals based on your current business audience and following. It is always better to set a lower financial goal, offer many perk packages, and over shoot the expectations. When a goal is considered unrealistic, most campaign contributors will skip over and move onto the next campaign in fear that in the event your campaign does not reach its goals, it will not be in a position to deliver on the perks it offers.

2). Maximize the term of the campaign. Crowdfunding campaigns need plenty of time to be marketed, showcased, and shared with an audience of potential contributors. Setting the length of the term of the campaign to at least sixty days will allow for your campaign to be seen by more people. The longer a campaign is open, the more opportunities you have to update the campaign, and adjust posts and project progress with your following audience. As the number of contributors climbs, more people will be open and willing to contribute to the campaign. A campaign that has attracted traffic, has more reach and draws even more attention. Allow yourself enough time to work out the formula for success.

3). Don’t be afraid to tell your story. Crowdfunding is an opportunity to share your “why” behind the project and the “what” the value proposition is.  It is wise to share how you came to the idea you did (your motive and intention); and a clear description of the deliverable (the what). Contributors like to feel like they are helping someone out that has lent their struggle to solving a problem with their value proposition. Contributors want to believe in the people behind the perk as much as they desire to believe in the value of the perk itself. It is fine to be passionate – this is where you also get to pitch you.

4). Be clear in describing what is in it for the contributor. Any time a potential consumer contemplates to part with their money, they analyze a series of self-discovery questions. “How will this change my life?” “Do I really need the perk?” “Will this product-book-technology really help people?” “Will they (the campaigner) be able to deliver?” And most of all, “What’s in it for me?”  Ask yourself, if you were the potential contributor, do you really need this in your life? And then ask yourself, if you do purchase the perk, what will the perk really do for you? Your perk packages should be something everyone wants or can appreciate. A true and clear representation of the value of your perk will often determine how much risk a contributor is willing to take. Is it something anyone can get in a local store, or is it unique and limited?

5). Engage the crowd. Crowdfunding was designed to have two functions:

  • To raise money for a cause
  • To collect feedback from potential consumers

The more engaging a campaign with a group of followers is, the higher the probability is that your campaign will have more contributors. Crowdfunding allows for both the inventor/entrepreneur and for the market to have an early conversation about the product offering. This should also give the campaigner valuable data to improve the make and model of their concept when necessary. Don’t be afraid to answer questions, provide test results, and make changes according to the positive feedback you receive. The more information you can share in an open dialog the more willing a contributor will be in supporting your cause.

6). A great marketing strategy drives every well-funded campaign goal. Effective marketing and advertising methods can assure that a larger audience views your campaign. Your marketing strategy should employ a mix of marketing tools, many of which have little or no cost. Make sure the marketing of your crowdfunding campaign includes a mix of social media, blog content, press releases, video content, photo content, search engine optimization, articles, testimonials, endorsements, product-book reviews, back link integration, and some use of traditional advertising. You will need to monitor and update marketing metrics, so you can adjust your marketing mix according to how potential contributors respond to your message.

7). Perform your due diligence. There is nothing new under the sun, and the same goes for crowdfunding. Even if your product is the first of its kind, there may be a similar market solution or competitor in your industry space. Research the “problem” and review the “solutions” other entrepreneurs have offered to the market. Then research how many of those entrepreneurs employed crowdfunding to upstart their enterprise. Chances are that there will be a number of campaigns that were very successful and some campaigns that were an utter failure. Make a list of the techniques that were most effective and the mistakes made that caused a campaign to flop. Compare these techniques against the list of practices you desire to employ in sharing your campaign.

8). Have a complete understanding of your potential audience. You must have a clear understanding of the audience you desire to enroll in your campaign. The demographics of the audience and the geographic location of potential campaign contributors can have an effect on whether your campaign is a success or failure. For instance, most digital or complicated electronic devices are more popular with younger generation donors. In contrast, if you have a very traditional product offering, then you need to identify, and target your campaign to, the audience that will have the most interest in your value proposition.

9). Be transparent with how you plan to spend your campaign funds. Campaign contributors want to know if you have a financial plan in place for spending or saving the money in which they have pledged. Most campaigns have best succeeded by using the campaign contributions to fulfill actual product orders. Most campaign contributors want to pre-pay for the unreleased product or book before everyone else in the neighborhood has it. Be prepared to plan to give back all of your campaign contributions in the event you do not meet your goals.

10). Set a reasonable timetable of delivery. Truth is your value proposition should be almost market ready. Crowdfunding should not be the only source for funding your project, nor should your campaign’s success or failure determine if your product is going to ever be manufactured. Set a reasonable delivery date that campaign contributors can expect their perk. In the event your project takes longer than expected, it is important to share with your contributors about the delay and updates of progress until the project orders are fulfilled.

11). Show that you are willing to invest into yourself. Most campaign contributors want to see that the entrepreneur has some of their own risk involved. There are two basic types of investment you are going to be required to make in your own project. The first is monetary. You must have some of your own capital at work. Having the ability to share with potential donors the actual amount of hard cash investment you have at stake before asking for outside financial resources always strikes a positive cord. The other investment you will have to make is sweat equity. Provide detail with contributors how much time you have invested and how much work you have put behind the project. You can share with the audience the functions and tasks you are personally responsible for. It is also good to provide some back story of your experiences and regarding your abilities to deliver upon those said tasks.

Each crowdfunding campaign has its own unique value proposition, and brings with it each entrepreneur’s story. The more thought you invest into each of these areas of your campaign, the greater the probability that a larger audience will take notice and interest in your campaign.

Samuel K. Burlum is an Investigative Reporter who authors articles related to economic development, innovation, green technology, business strategy, and public policy concerns. Samuel K. Burlum is also a career entrepreneur, who currently lends his expertise as a Consultant firm to start-up companies, small businesses, and mid-size enterprises, providing advisement in several areas including strategic business planning, business development, supply chain management, and systems integration. He is also author of “The Race to Protect Our Most Important Natural Resource-Water,” and “Main Street Survival Guide for Small Businesses.”

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Why is Fashion So Important?

Written by: Samuel K. Burlum, Investigative Reporter and author of The Green Lane, a syndicated column, Published on 5/17/2018, a SamBurlum.com Exclusive

Tags: business, community, fashion, clothing, financial investment, social-economic status

Source: Throughout history, society has turned to the latest fashion statement as a mark of social status. Why is fashion so important? Why do so many people pay attention to it, and why does it even matter?

Fashion in clothing has always stood as a social economic symbol for individuals that were in tune with the times. For some, clothing is just fabric that serves the purpose of covering and protecting the body. For others, fashion is a form of living art in motion.

It is believed by many in the fashion industry that fashion is a way for individuals to express themselves. Each color and type of fabric has a meaning, and matches a personality type. When colors and fabrics are mixed, each combination tells a story about the person wearing it, much the same as it does of the person or company that designed it. Each fashion trend has a “look” or style that best reflects individual personality and demeanor. Every person contributes a personal touch to each day’s outfit.

For instance, navy blue and a mixture of gray colors for business suits and outfits are considered the most professional in the office environment; however, if you are at a trade show trying to attract attention, you might wear white or bright colors to get noticed by people. Such “rules” for fashion usually come from corporate dress codes, with the intent of being neutral and objective to the audience you are trying to communicate with.

Fashion itself has always been a reflection of the sign of the times. Whether it is for a social economic reason, political statement, or within a culture’s tradition, fashion has always played a role in communicating the “message” of a people or a message of the times. Each culture has its own unique traditional dress that reflects its community’s belief system, whether it be philosophical or religious. As technology has improved manufacturing capabilities, fashion has gone from being “homemade” to more mass produced, thus more audiences may wear similar clothing than in the past.

A newer trend in clothing fashion goes beyond purpose, function and the traditional forms of influence to include becoming mobile billboards for the fashion brands themselves. If you take a look at fashion brands such as Tommy Hilfiger, GUESS and Juicy Couture, their signature brands have become the focus, not the people wearing them. Their ad campaigns can make people feel that if they do not own a Hilfiger or GUESS article of clothing, they are not part of the cool crowd. Other clothing brands focus on becoming high energy, luxury life style brands, thus owning their clothing becomes a status symbol.

For others, fashion, style and choice of brands are determined primarily by an individual’s personal passion, hobby or cause, making their clothing into their own personal billboard. Some examples of this are seen in sports apparel, racing, motorcycle apparel and brands committed to environmental sustainability and human rights.

Fashion has become a living art form, and though most average working class individuals may never spend thousands of dollars on one single article of clothing, individuals have come to appreciate the many artistic designs presented on the runway or showcased on models in department stores. This work of art says something to each person that views it. Some of these designs may be ridiculous to wear in any daily situation, however, the design itself may spur off other creative ideas because of the shapes, colors, or materials used to create the living art.

It has also been said that we feel the way we look. As human beings, we are very visual people. How we see ourselves in the mirror before leaving our homes for the day may be a reflection of how we feel about ourselves. Have you ever put on an article of clothing such as a suit and tie or a dress and instantly felt better about yourself? Showing that we are willing to invest into ourselves before we leave home for an important meeting, or for a family or social event, usually will reflect the response that we demand from others on how they view us. Though we are taught not to judge a person by their appearance, we do; and it’s the first impression that lasts the longest in our mind.

Fashion is not just clothing. It is a representation of an industry that employs millions of people. From designers to production line manufacturing, from marketing and advertising to retail workers, many jobs and economic foundations are based on the fashion industry. The next time you choose a piece of clothing from the rack, ask yourself how many people were involved with the final product you can touch and see in the store. Even the raw materials had to be grown or harvested by a farmer or field hand.

Ultimately, fashion is a personal choice, whether you chose your style to serve a specific purpose or it’s to impress others around you, fashion is meant to be the personalized message you dare to share with others. For some, fashion trends are not that important, but rather a matter of form and functionality. Whatever your view, it is reflected in how you present yourself.

Samuel K. Burlum is an Investigative Reporter who authors articles related to economic development, innovation, green technology, business strategy, and public policy concerns. Samuel K. Burlum is also a career entrepreneur, who currently lends his expertise as a Consultant to start-up companies, small businesses, and mid-size enterprises, providing advisement in several areas including strategic business planning, business development, supply chain management, and systems integration. He is also author of “The Race to Protect Our Most Important Natural Resource-Water,” and “Main Street Survival Guide for Small Businesses.”

 

Crowdfunding Options for Entrepreneurs and Small Businesses

Written by: Samuel K. Burlum, Investigative Reporter And author of The Green Lane, a syndicated column, Published on 5/8/18, a SamBurlum.com Exclusive

Tags: Business, Community, Crowdfunding, Economy, Entrepreneurship, Finance, Small Business

Source: Many small start-up businesses and tech ventures in search of capital turn to popular online platforms for crowd fundraising of financial resources to get their concept off the ground and launched into market. Indiegogo, Kickstarter, and GoFundMe, to name a few, offer solutions in generating cash to fund new ideas. How do you get people to contribute to your cause?  We take a look at some of the most effective crowdfunding techniques.

In the last decade, there have been a number of crowdfunding platforms that offer a menu of fund raising options, including the launch and growth of Indiegogo, Kickstarter, and GoFundMe. A potential campaign contributor can find a variety of crowd fundraising campaigns that range from an inventor who is in search of a few thousand dollars, to a large, corporate-backed venture that is accepting pre-market orders for their new value creation. Each platform specializes in their own niche offering, and provides a formatted recipe for what works in getting campaign contributions.

For instance, Indiegogo mandates that campaigners build and maintain a very aggressive plan that engages with multiple audiences from the campaign’s inception. As a part of the Indiegogo playbook, campaigners must make weekly posts and provide monthly updates for campaigns that have transitioned from either a 30 or 60 day campaign to their long term product called InDemand.  Indiegogo shares that campaigns must include video and photo content as part of their message in sharing their offering with potential contributors.

Kickstarter is also a leader in assisting with the introduction of innovative products and new books, music and other forms of art to market. What makes Kickstarter so successful for some entrepreneurs are the tools available that Kickstarter offers to promote their campaigns. Crowdfunding campaigns that have the highest rate of success with Kickstarter are those that offer something that is new, solve a problem, and offer something practical that people are willing to buy. Most products presented on Kickstarter are beyond concept and are ready for manufacturing and delivery. Kickstarter has helped products get more traction online, and has served as an interim online e-commerce site for product sales while entrepreneurs are setting up a permanent place to market their value proposition.

Most people use GoFundMe as a social cause donation site. For many individuals and groups needing only a few thousand dollars of funding for a personal project, GoFundMe has become the crowdfunding platform of choice. From setting up and taking donations for a funeral, to sponsoring a local sports team which is trying to obtain funding so they can travel to an event, GoFundMe has provided millions of individuals and non-profits the ability to quickly gather up a few extra dollars in a time of need.

So what are some of the most effective practices for marketing your crowdfund project? When marketing to potential funders, social media has become the mainstay platform to inform your audience of close friends and connections about your cause or value proposition. Facebook gives you an opportunity to spread the word to your friends, family, and extended connections. To get a better reach of your program, you can ask and encourage your network to share your post, and provide feedback about the reason why they chose to help your campaign. If you desire to connect with professionals in a specific industry, Linked-in provides the ability to syndicate and share your post with people from several related market segments. You can also promote your campaign through Twitter and Instagram, redirecting raving fans to your campaign page.

So what will donors get for their money? A donor should have the ability to choose perks in return for their donation, especially if the campaign is not solely philanthropic. “Perks” are the benefits that an individual can expect in return for the donation. The more creativeness and value you can squeeze into each perk package, the more you can request per perk level. By adding in a free copy of a book or promotional materials, you can provide additional added value for your donors. “Perks” are generally pre-orders for the specific market product you desire to launch. You can, however, provide add-ons for each level of donation.

Two methods you can employ for increasing how many people see your perks are:  1) holding a contest for most shares of your post with friends on social media, and 2) asking people that are not in a position to contribute to your campaign to help by spreading the message about your campaign story with people they feel would be interested in your project.

Having a few endorsements either by written or video testimonial will provide additional credibility to your offering. You can ask satisfied customers to give testimonials, or, if you know a celebrity, sports figure, or public figure, you can ask them to share a few words about your project, edifying the project and the product.

Lastly, you must monitor your results on a daily basis and make campaign adjustments accordingly. Having the ability to tweak your project’s campaign as you obtain feedback from donors will help you make changes to your campaign and provide updates that may increase traffic to your campaign’s page. Most crowdfunding campaigns can extend as long as 60 days, thus giving you time every few weeks to add to your campaign content and promote it online.

Samuel K. Burlum is an Investigative Reporter who authors articles related to economic development, innovation, green technology, business strategy, and public policy concerns. Samuel K. Burlum is also a career entrepreneur, who currently  lends his expertise as a Consultant firm to start-up companies, small businesses, and mid-size enterprises, providing advisement in several areas including strategic business planning, business development, supply chain management, and systems integration. He is also author of “The Race to Protect Our Most Important Natural Resource-Water,” and “Main Street Survival Guide for Small Businesses.”

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