Could crowdfunding be the magic silver bullet in your next product launch?
Well, it may not be quite that simple, but we believe that crowdfunding if done the right way, is an effective strategy to boost your next marketing campaign.
Before You Get Started...
Ask Yourself…
- 1.
Have you built enough buzz ahead of time?
Before launching your project, ensure that you place some teasers about it on your website. And don't forget to communicate with industry journalists and shoot out some emails to your main contacts.
- 2.
Do you have the right marketing agency on board?
With an expert on crowdfunding helping you, you greatly increase your chance of success. For example, BoostYourCampaign has raised over $400 million for its customers over the course of 4000 crowdfunding marketing campaigns.
- 3.
Are you selling a high-quality product?
Even the best crowdfunding campaigns will fail if the product doesn't live up to expectations. As long as you have a great product, the sky is really the limit.
Benefits of Crowdfunding
Here are 11 reasons why you should give crowdfunding a try.
Quick Access to Capital
To start a business or launch a product, the first thing you need is a reliable source of capital. Traditionally, most business owners seek this capital from banks or investors, a process that takes a fair amount of work and initial investment of your own. But it doesn't have to be that way.
Minimizes Risk
Whether you're a new company just starting out or a well-established business, a new product launch always poses some significant risk. A crowdfunding campaign is a simple way to mitigate these daunting risks. It gives you the opportunity to introduce your new product to a small sector of your target market without depleting your energy and resources by doing a full-scale launch.
Builds a Community
There are few things we love more than a good old-fashioned success story. A crowdfunding campaign gives you a platform to share your own story and build a community around it. This community will grow to encompass media outlets and reporters who will get the news of your product out to the public more efficiently than you ever could do on your own.
Easy Pre-selling and Upselling
The opportunity to pre-sell your product allows you to take the temperature of your marketing campaign and to figure out what you might need to do differently before you officially put it on the market. By experimenting while in this phase, you avoid potentially costly mistakes later on.
No Upfront Costs
Most of the popular crowdfunding platforms (like Kickstarter and Indiegogo) offer all-or-nothing funding. This means that no one is charged until the fundraiser reaches its goal. So you can potentially raise 100% (or even more) of your needed funds without spending a dime.
Media Exposure
A crowdfunding campaign is an effortless way to attract the attention of journalists and media influencers. This, in turn, makes you more visible to potential investors and future customers. Reporters are intrigued by stories of new business ventures and will gladly spread word of your efforts across media channels.
Powerful Marketing Tool
Part of good marketing is getting your brand out there in front of potential investors and customers. A crowdfunding campaign, especially in conjunction with BoostYourCampaign, gets your brand into the public arena effortlessly. The campaign brings organic visitors to your brand, many of whom will spread the word, possibly making it go viral.
Provides Social Proof
To make a sale, you need social proof. But to earn that social proof, you have to make a sale. A crowdfunding campaign allows you to bypass all that. It gives you a risk-free opportunity to provide a proof of concept to potential investors.
Opportunity for Feedback
Crowdfunding gives you a free, built-in "brain trust" of potential customers and backers. They can help you with everything from your business plan to product quality to customer service. Think of it as hiring a team of consultants who work for free.
Builds Loyalty
Your present-day early adopters are your future lovestruck fans. And loyalty is worth its weight in gold. By introducing your brand during a crowdfunding campaign, you allow people not only to try out your product but to get to know your brand's mission and values.
Easier Than Direct-to-Market
Compared with the months or years of marketing, raising capital, and building a customer base that you would have to engage in otherwise, crowdfunding is quick, easy, and affordable. Within a short amount of time, you'll have a product on the market that is well-publicized and a fan base who believes in it.
Ready to Launch Your Crowdfunding Campaign?
Let us help you reach your funding goals with our proven marketing strategies.
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