Social entrepreneur Zach Smith is one of the leading success stories of the crowdfunding concept. Over the successful launch of more than 100s of campaigns, Smith has raised an estimated $110 million in revenue.
He is one among many who have enjoyed tremendous success through crowdfunding campaigns. What better way to kick start your campaign than by learning from those people who have already made it through? It is a common saying among some parts of the world “why learn from the mistakes you make yourself when you can learn from the mistakes of others”. This is a very relevant saying when it comes to understanding and starting your crowdfunding campaign. You don’t start something unless you put in the effort to learn all of its ins and outs from all sides and all angles.
So in order to do that let’s start with Zach Smiths seven Ps for crowdfunding success:
1. Product: The product needs to be appealing to donors. Why should they invest their money into your product? Ask yourself this question repeatedly when coming up with ideas to start a campaign
2. Platform: Consider whether the business idea or the campaign is a good fit for crowdfunding. Some ideas just don’t entail the crowdfunding style and rather require traditional means of going about it.
3. Pitch: One of the most important aspects of crowdfunding is your idea presented. Your idea might even be a world changing phenomenon but unless you can pitch it correctly nobody else will think so. Include videos, animations, creative designs but keep it brief because the shortest of details captures the attention of the donor.
4. Promotion: According to Smith there are three components to promotion. The first is paid media which includes social media advertisements. The second is press which would entail newspaper and magazine promotions among others. The last would would be partnerships.
5. Price: Lowering the price is an action which is ill-advised since later on in the campaign it much more difficult to raise. Be very careful about the price you set out for your product because going up and down later on becomes a problem.
6. Probability: Keep numbers, statistics and facts in handy and be ready to convince your backers on how this campaign will turn out to be a success story. People love ideas but even more so with reliable numbers.
7. People: You and your team need to be the right mix of people who can work out all of these aspects to crowdfunding efficiently, productively and with an innovative touch. Be mindful of who you put on board and whether or not they are suited to your idea.
Put all these seven P’s to success into effect and see enjoy the results for yourself. Although this guideline provides a generic approach to crowdfunding it isn’t worth a lot if you don’t bring add your own figurative P to it. Give it your touch, make it yours and reap the benefits.