Crowdfunding sites are helping people all over the world launch their businesses through the generous donations of family, friends, and even total strangers. So how does crowdfunding work? Here are a few of the basics:
+ Launch A Campaign
The key to crowdfunding is to launch a campaign that compels people to join your movement. Your campaign should answer key questions like who you are, what you want to do, how much money you wanna raise, and how you plan to put their money to good use. Having a good idea is key, but how you present it just as important. Here's a tip: 64% of Indiegogo campaigns in 2012 used videos to reach out to donors. Check out this clever vid by Who Gives A Crap founder Simon, whose toilet paper company donates 50% of profits to building toilets in the developing world. Simon convinced 1,333 people to give a crap, raising almost $70,000 for his business:
Last year, videos under 5 minutes were 25% more likely to reach their funding goals than longer ones, so as funny and good-lookin’ as you are, try to keep the face time to a minimum!
+ Be Yourself
Present yourself and your idea as honestly as possible. It takes a lot of blind faith to donate to a total stranger, and people wanna know they can trust you and your business. Good Spread Peanut Butter founders Alex Cox and Mark Slagle kept it real in their campaign video. (The baby blues helped too!) Together, the young entrepreneurs raised almost $70,000 for their company, which feeds one malnourished child for every packet of peanut butter they sell.
+ Offer Incentives
Great campaigns don’t just take money -- they also offer something in return. Amos Kennedy, who needed people’s help building a printing plant in Detroit, offered free postcards to small donors, and jokingly promised to move three 18-wheelers full of equipment AND himself into the living room of anyone who donated $50,000,000.
Photo: Amos Kennedy with art students. (Indiegogo)
So what are you waiting for? There’s no better time to launch your biz than now, and sites like Indiegogo and thousands of people around the world wanna help you do it! Take action below to get started.