What Are Some Suggestions for Successful Crowdfunding?


Quick Answer

When starting a crowdfunding campaign, first determine whether the campaign should be a rewards-based or equity crowdfunding campaign, then choose the best platform for this particular type of campaign. Promote what is in the interest of the crowdfunders, and promote notable investors whenever possible.

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Full Answer

Rewards-based crowdfunding, as popularized by sites like Kickstarter and Indiegogo, differentiates itself from equity crowdfunding in that the crowdfunders do not become shareholders of the business once realized. Equity crowdfunders become shareholders entitled to residual proceeds from the endeavors that they invest in.

After deciding which crowdfunding strategy is the best fit for a particular idea, choose the appropriate platform. Kickstarter has an excellent track record for successful creative projects, while Indiegogo allows projects to be partially funded.

When crafting a marketing strategy for a crowdfunding project, remember that notable crowdfunders can help bring additional crowdfunders into the mix through their personal and professional networks. Crowdfunding platforms do not provide sufficient promotion for project proposals to rely entirely on them to get the word out for a project. As a result, campaign owners need to put in time and energy into planning a marketing campaign that brings additional funders to the project by focusing on their needs and highlighting notable people who participate.

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