What You Need to Know About Crowdfunding

What You Need to Know About Crowdfunding | Products to Profits

What is making crowdfunding successful now? Is it a great marketing team? Tons of backer incentives? Or just an amazing product?

The answer is: "All of the above!" Campaigns that have been successful in the past have gotten there through implementation of an effective strategy. Teams behind these projects create and maintain key driving forces of these relatively short campaigns. CEO and Co-Founder of the LaunchPad Agency, James Little points out, "The three P's of crowdfunding are "Preparation, preparation, and preparation.'

We cannot stress enough how important it is to have a strategy and plan in place. When it comes to crowdfunding, there are different types for different desired end results. The first type of crowdfunding is equity-based. This is usually used to raise amounts of 1 million dollars and up. Another, more popular, kind of crowdfunding campaign is gift- or reward-based. This essentially means that your backers will support you in exchange for a gift. The kind of campaign you choose to use should reflect your ultimate goal.

James Little identifies 3 stages of jump-starting a crowdfunding campaign in the following list:

Stage 3: Update your backers regularly - Keep them in the loop about your progress. If there are any questions or concerns, address them as soon as possible. Make it a point to serve them. At the very least, send them a direct message or email.

Need more ways to motivate potential backers? This content was presented by James Little on our most recent Product Power Coaching Call. Listen in below to a snippet of the call:

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Check out our previous crowdfunding posts below:

Bring Your Idea to Life - How to Be a Crowdfunding Campaign Winner

Pre-Selling the Crowd - Thoughts on Crowdfunding

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