Before you create your crowdfunding page, decide where you want to focus your efforts and what rewards you want to extend
Question: What is your best advice for entrepreneurs looking to crowdfund?
Set your goal low
“A key factor in crowdfunding algorithms is a metric called per cent-to-goal. Most crowdfunding sites want you to have 40-50 per cent or more of your funds raised within the first 24-48 hours. Keep in mind crowdfunding sites don’t get paid unless you hit your goal, so they want to feature campaigns that are funding quickly. You’re likely to get more views by having bigger per cent-to-funded ratio.”
– Steven Newlon (@stevennewlon), SYN3RGY Creative Group
Don’t worry about being “annoying”
“People can’t back your project if they don’t know about it. Post so often on social media that you feel like you’re being annoying. (Remember, most people won’t see most of your posts.) And go beyond social media. During the campaign, mention it to anyone you meet. Go through your address book. If you haven’t sent emails to everyone you know dating back to high school, you haven’t done enough.”
– Mari Burns Otiz (@burnsotiz), 7 Generation Games
Put effort into each reward
“You are asking your backers to take a risk on you. Think about awarding your donors and what is in for them. Create a set of truly compelling rewards that tie into your story. What is unique that you could offer?”
– Jessica Baker (@ALIGNEDSIGNS), Aligned Signs
Also Read: This equity crowdfunding partner of a major Singaporean bank just raises US$72M
Narrow your focus
“Don’t overpromise. Single in on one very clear message or concept with a clear understanding of what the money will be used for and why it’s needed. Additionally, understand the legal differences between donation and equity crowdfunding. It’s now possible for you to sell equity to the general public, but you need to be aware of the legal restrictions that come with that.”
– Steven Buchwald (@steven_buchwald), The E2 Visa Lawyer
Make it fun
“Crowdfunding is a commonly accepted part of our current landscape. People are often willing to give even if it’s just a little. Set an easily attainable goal and give out fun prizes at various levels: stickers, exclusive merchandise or content, or even a special meet and greet for top donors. People like the idea of doing something good, so make sure to clearly define how their donation helps you.”
– Ajmal Saleem (@suprexlearning), Suprex In Home Tutoring
Spend time on the design
“It’s worth putting the extra time, effort and money in making sure your campaign tells an aesthetically visual story. Backers need to be convinced that you and your project is worth the contribution, so make sure design is part of your overall campaign messaging and strategy.”
– Nadia Hansen (@ResultLogix), Result Logix
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The Young Entrepreneur Council (YEC) is an invite-only organisation comprising the world’s most promising young entrepreneurs. In partnership with Citi, YEC recently launched BusinessCollective, a free virtual mentorship programme that helps millions of entrepreneurs start and grow businesses.
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