Ariel Hyatt, founder, Cyber PR
Crowdfunding has now solidly hit the mainstream. There are now over 500 crowdfunding platforms to choose from and according to an article in entrepreneur.com it helped add $65 billion to the global economy in 2014.
My own crowdfunding campaign made such an impact on my business that I added crowdfunding coaching to the suite of services my agency offers. I have since coached dozens of clients over the finish line. Here are my top 5 tips for those who are looking into crowdfunding for their business.
Tip #1 – Choose An Irresistible Name & Pitch For Your Campaign
Designing an effective name for your campaign is crucial. You want to create a killer title that grabs the attention of funders as well as a 5-15-word pitch that describes your mission (and what is in it for them) perfectly. This will draw funders in and help them to instantly understand what your campaign is about. To get inspired, surf around a few platforms and note what projects resonate with you by name.
Tip # 2 – Budget For All Possible Hidden Campaign Expenses
I have unfortunately seen this quite a few times: the money comes in and then there are unexpected expenses. Make sure you factor in how much money full delivery of all rewards promised is going to actually cost you!
Here are some assets you should keep in mind. Create calculations for each
• Crowdfunding platform & credit card fees
• Taxes – money you raise might count as income
• Reward delivery expenses – postage, envelopes, etc.
• Newsletter management subscription cost increase
Tip # 3 – Keep In Mind That Facebook Numbers Probably Do Not Count!
There’s a downside to heavily relying on Facebook numbers when estimating a campaign’s potential success. Quite a few clients proudly start by telling me they have 3,000, 5,000 or more fans on their Fan Page, and so they assume that equals fans who fund. This is almost never the case. It is crucial to check Insights. Make sure you understand your real number.
Tip # 4 – Make The Telephone Your Go-To Campaign Tool
I am delightfully and constantly delightfully surprised at how effective calling contacts is; People are busy, it’s not personal, so pick up the phone.
Tip # 5 – The Last 72 Hours Are Critical
Statistics show that you will get a windfall of money in the last 24 hours of your campaign (I got $23,000 in the last 48 hours!). That means it is crucial to keep the pedal to the metal for the entire length of the campaign and make the last 72 hours count!
About the Author
Ariel Hyatt is the founder of Cyber PR a, published author, professional speaker, educator and a social media and marketing performance expert. She has impacted audiences in the tens of thousands with her simple goal: reprogram the way entrepreneurs think about social marketing. She has been invited to present at over 70 conferences in twelve countries, including SXSW where she has appeared 10 times. Established media outlets including Oprah, CNN, Wired, Billboard, Forbes.com, and The Washington Post have lauded her work. Her newsletter and YouTube series, Sound Advice, has over 20,000 subscribers. Find her on Twitter @CyberPR or LinkedIn/ArielHyatt