7 Deadly Sins of Crowdfunding
. . . a Brief & Powerful Guide to make the most out of Crowd-Funding
from Every Note.com 27 May 14 enhanced by Peter/CXO Wiz4biz
Here is what all Crowd-Funding contenders should know before launching their campaign.
1. GREED – It’s not just about the money! Crowd-funding gives you the chance to raise awareness and build an audience prior to – or while -working on your project. Many successful creators consider these benefits to be more valuable than the funding. Non-monetary benefits of Crowd-funding include:
· Showing the world that you are not the only one to believe in your project (known as “third party validation”).
● Showing the world that you are not the only one to believe in your project (known as “third party validation”).
● Building a network of Supporters & Advocates – even if people don’t buy your vouchers, they may talk about your project to their social network. (“word of mouth” marketing)
● Starting distributing your product by selling your Project Vouchers – (ie, pre-sell your product (aka “market testing”).
● Getting assistance from the public: let fans participate in your project. Listen to their feedback & act on the good ones.
2. GLUTTONY – What is a reasonable Funding Target? It is ALWAYS better to meet your target than not to meet your target. Sounds obvious? So please choose a goal that’s small enough that you can confidently meet & exceed. Exceeding your target will add a touch of brilliance to your campaign! Bear in mind you can always come back for another round of funding later. As to the precise amount:
● Be Straightforward about your actual costs, this is what you need to raise.
● Think about how many Vouchers you need to sell to reach your target. Is that a realistic number of sales?
● There generally is a strong “correlation” between the size your existing social network and how much your can raise through crowd-funding. How many of your existing fans will contribute & how much
3. PRIDE – Actually… a bit of Vanity is good when it comes to Crowd-funding.The public loves to see your face on your Crowd-funding campaign Blog, Website Webinar or Video (no really!). So show yourself and tell the story of your project (briefly). Experience shows that the public often prefers to read. listen to or see the people & passion at work behind your project. Make your campaign creative, fun & original.
4. SLOTH – ZZZ… Success is about “engaging” your Audience! Do nothing once your project is live, and the odds are that nothing will happen. That’s why sloth is by far the most lethal of all crowd-funding sins! Crowd-funding starts with your friends, family & existing fan base, then Network. Ask them all to contribute a little. You never know when you’ll strike the cord of a kindred spririt – that is also gung-ho for your cause!
[ Sloth continued (Tools to use); 5. LUST – Share the Love; 6. WRATH – Keep cool: give yourself enough time; 7. ENVY – Keeping up with the (successful) Jones – all are in Premium Content ]