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Tips on running a crowdfunding campaign

Some quick tips for raising support and investment through crowdfunding…

What is crowdfunding? Simply put, crowdfunding is fund raising from the public which has of course been happening for centuries. What has changed recently is the overlay of digital platforms and social media.

What is crowdfunding?

Simply put, crowdfunding is fund raising from the public which has of course been happening for centuries. What has changed recently is the overlay of digital platforms and social media. The crowdfunding websites allow you (for a commission or fee) to display your project and provide a mechanism for the public to pledge money usually in return for a reward. Since 2009, billions of dollars have been raised globally and arts and cultural projects have been a major recipient of these funds.

How to get started?

Do your research:

  • Look at crowdfunding platforms especially at projects like the one you are proposing, to determine the attributes of successful campaigns.
  • Read the terms and conditions of the platforms. There are points of difference. Some require you to reach your target before you get the pledges and others let you keep anything pledged. The fees and commissions also vary and the platforms themselves are evolving.
  • Most platforms have tips on how to run campaigns.

Formulate your project proposal:

  • You need to have a clear idea of what you will do with the money. Vague and poorly formulated projects rarely succeed. Your proposal must be investment ready.
  • Your project needs to capture the imagination to be attractive to investors. The story you tell must inspire people to pledge support.
  • If people pledge money they have a vested interest in the outcome and they will often become ambassadors for the project because they will want to see it succeed.
  • Who makes up your supporter base and what will resonate with them? Is it about location, innovation, the community, the art form?
  • Your project proposal must look visually appealing. Lots of dense text is unlikely to encourage people to find out what you are proposing. Interesting images, good lay out and concise language is all essential. Tell people why you are passionate about the project.
  • Are there high profile people who might provide a clip or image encouraging people to pledge for your proposal?
  • A short, high quality clip outlining your proposal can be a very powerful tool.

Set a realistic target and timeframe:

  • Unless your campaign goes viral (and this is the exception not the norm), it will be people you know who will pledge. How many people do you know and how much are they likely to pledge? These facts will be critical in formulating your target.
  • You need to offer rewards that will encourage people to pledge. Not all rewards are collected but for some people it is a big incentive to give or give more than they otherwise would to get a unique or money-can’t-buy type of reward. Also having rewards that you can manage and afford is important. If you offer a master class or attendance at an exclusive event, make sure you take into account the time and money involved when setting the amount that must be pledged to trigger this reward.
  • Often crowdfunding platforms will set minimum/maximum timeframes but longer doesn’t always mean more successful. You must keep the momentum going for the whole period.

 

Have a project plan:

  • To be successful, you must run the crowdfunding campaign like any project. Getting your project proposal on the crowdfunding campaign is just the beginning. A successful campaign will need a clear plan of action and preferably a few people to share the load. How are you going to let your network know of the campaign? Who are you sending it to and when?
  • Have a few trusted friends and family lined up to pledge as soon as the campaign opens to get the momentum going. Trending campaigns will often be given a more prominent position on the crowdfunding platform.
  • Messages encouraging people to pledge, thanking those you have pledged and keeping every-one engaged are all critical.
  • Can you generate media to give the campaign a boost?
  • Keep in mind a crowdfunding campaign is not only about raising money but it is also a marketing exercise and an opportunity to build your community of interest. A well-run campaign will boost your profile. It can also test the market. If people pledge then that may be an indication there is a market or audience for your project or product. If not, then you may want to refine it.

After the campaign

If you reach your target:

  • Thank those who have pledged and honour the rewards you have offered. You have created a relationship with all the contributors so be sure to nourish the relationship.
  • Keep every-one informed about the progress of your project so they remain excited.
  • Ensure you maintain the trust by delivering on what you said you would.
  • Once the project is delivered, that is not the end of the conversation. Keep your newly formed community of interest engaged and excited about your work!

Some crowdfunding platforms to consider

 

Arts Queensland

Feature image: Freeimages.com