There is a way to do crowdfunding and there is a way to do crowdfunding right. I'm here to bring you the right way.Crowdfunding, also known as peer-to-peer funding, is based on a belief in the power of the individual. it allows you to reach a wider donor base by leveraging personal relationships through personal online networks, through social media, and through email.Crowdfunding works because it makes things personal. You're bringing your cause directly to the individual. Tugging at the heart strings, making people feel like they can make a difference.
The key to crowdfunding, as one might expect, is preparation. You cannot simply open an account on Kickstarter and expect the money to start pouring in. Crowdfunding works, but it takes effort.You begin by selecting which crowdfuding site is right for you. Kickstarter and Indiegogo are the two most well known but there are plenty of others out there that might fit your organization or cause better. For instance, some sites use the All-or-nothing model of funding, leaving you empty handed if you are not able to reach your fundraising goal, while others use the keep-what-you-raise model. Hubspot has a great list of the 7 top crowd funding sites for non-profits.
The simple fact is that having a campaign video more than doubles a campaigns rate of success. Spend some time creating a 1 to 2 minute video that gives donors a window into your world, shows them why they should donate, and what they could potentially be apart of. It's a great personal touch that pays dividends.The next step would be to decide on a fundraising goal that is realistic and attainable. One of the things that appeals to people who fund crowdfunding campaigns is the transparency involved in the project. Most donors will expect to know how their money is being spent, so it is important to be honest.
The part about crowdfunding that I think people misunderstand the most is that to start you must first begin by connecting with your family and friends. The great benefit of crowd funding is that you are able to leverage other people's audiences, in this case your family and friends to start. A large aspect of crowd funding is social media getting people to share your cause with their network. Often those who can't donate can help by spreading the word which is just as good. Make sure it's easy for them to do so. As we discussed in What Event Planners Can Learn From Economists, people are much more likely to give if they see or hear that someone they know also gave to the cause. It's all about the information cascade.Crowdfunding should definitely be on your radar if your in the business of raising money. As with many things you get out what you put in. So be prepared to put in work and the donations will follow!What do you think? Have you tried a crowdfunding campaign before? Did it work for you? Please share with us you thoughts in the COMMENTS section!