Crowdfunding Campaigns: How to Create Successful Crowdfunding Campaigns

Crowdfunding campaigns are well and truly back in fashion, although we aren’t really sure they ever really went out of style. Successful business campaigns use crowdfunding platforms, such as Kickstarter and Indiegogo, which are a great way for small businesses, companies and start-ups to get their start.

Read our guide below on the benefits of crowdfunding campaign platforms and our top tips on how you can create successful crowdfunding campaigns for your business.

What is crowdfunding?

Put simply, crowdfunding is when a “crowd” funds a business or new idea as opposed to a single or multiple major investors. There are different types such as donations, rewards and equity to name a few. It has the power to bring people and communities from all over the world together by funding a new idea or business cause that matters to them.    

What are the benefits of crowdfunding platforms?

The most effective way to launch successful crowdfunding campaigns is by using reputable crowdfunding platforms. Kickstarter and Indiegogo offer a number of benefits that will help you find and connect with previously untapped customer bases, creating the perfect platform for launch.

Instant Feedback

Kickstarter or Indiegogo campaigns provide valuable sources of information for product development and customer research. Prior to crowdfunding platforms, companies would spend thousands on private development and production, without the certainty that their product would actually resonate with an audience. 

The reality of crowdfunding platforms is that as soon as campaigns go live, potential backers are able to start sharing their feedback on everything – price, product design, delivery etc. This information is invaluable to your product development, but without the costly investment of research.

Loyalty

By listening to this feedback and incorporating the suggestions put forward by your backers, your supporters will feel as though they have created the product with you. Anyone who has a perceived ownership over a product is going to have a vested interest in its success, with your backers therefore becoming your most vocal supporters.

This sense of loyalty is proliferated by the expected transparency companies must show throughout the crowdfunding process. Many crowdfunding platforms state companies must publish an expected delivery date when you launch campaigns, encouraging companies to deliver on what they promised. 

The flip side of this is that there is a lot of pressure on companies to deliver, but when you do, the trust that you have established with your backers will translate into a long-term relationship with your backers.

Marketing Benefits

We all know that starting your own business today is very much reliant upon being able to get the word out. Crowdfunding platforms like Kickstarter and Indiegogo have their own databases of potential customers that you can tap into. 

And if you are short on time and money, your crowdfunding page can act as a host website while you establish your own. However, this does mean that you need to ensure that all the information you would have on a website (i.e product images and details, testimonials, team info) should appear on your campaign page.

Low Cost

If you are on a tight budget and in need of some income prior to production, crowdfunding platforms are a great option for you. You save by:

• Getting valuable consumer feedback without spending on product research.
• Not necessarily needing a website and online store – saving on web development costs.
• Assisting you in terms of fulfilment management – many platforms have a  Backer survey feature to help manage orders and shipment. 

Top tips to ensure your crowdfunding campaign is a success

With crowdfunding projects having a success rate around 30-50%, how do you ensure you have a successful crowdfunding campaign? Here’s how.

Build your community and get the word out

Before you start your crowdfunding campaign, make sure you have your social media pages set up with some content of your product. Consider running some FB or Instagram ads (Like campaigns) to build your following. Also create an exclusive FB group for followers to join – share exclusive content, BTS, conduct product surveys – get them involved! Building a following isn’t necessarily essential, but it will make your chances of success a lot better.

Establish trust and manage fear

Crowdfunding campaigns have a history of being very successful, but there are also a few cases that weren’t so well thought out, leaving backers out of pocket and incredibly disappointed. To combat these cases, it’s imperative that you create a sense of trust with your audience. This needs to be communicated through all of your messaging, and is another reason why building that community is a crucial element to a successful Kickstarter campaign. 

Communication is key

Make sure to keep your backers updated – communication is key! We recommend posting regular updates on the platform including photos and videos on how the production process is going. The more communication, the greater the trust.

Collaborate

One of your biggest assets by using Kickstarter or Indiegogo is the crowdfunding platform itself. Make sure platform representatives are on board with your campaign and are just as excited as you are. 

We recommend getting in contact with a representative – ask questions, get to know the platform as much as possible. Perhaps discuss ways that they can help you tap into their network.

There are also cross-promotional opportunities through crowdfunding platforms. You promote another project in your update and vice versa. However, make sure that the product you are promoting will appeal to your backers, perhaps look for a complementary product. 

Get a head start

The first hour, day and week are crucial for success. Campaigns that gain 30% of their goal within the first week are more likely to reach their funding goal by the end of the campaign. That’s why it’s important to have already built up that community.

Please note that a percentage of your sales will go to the crowdfunding platform, so make sure this is accounted for when constructing a budget for your campaign. 

Kickstarter campaign case study: Raine Electric Scooters

Our digital agency Rumblr, was asked by new tech start-up, Raine Electric Scooters to help launch their Kickstarter campaign. In the 6 months leading up to the campaign, we carried out a multi-channel digital campaign, which incorporated:

• FB and Instagram ad campaigns
• SEM (Google display)
• SEO campaign
• Management of social media accounts (organic)
• Email marketing
• PR

We also worked with Raine to build an engaged community of followers. We started a Raine Facebook group – a platform where the company could share BTS content, ask for feedback on specific design elements, which collectively contributed to the development of a highly engaged community of over 600 people prior to the campaign launch.

We also managed their social media accounts in the lead up to and during the campaign, sharing images of the electric scooter in use, as well as close up shots of certain features and design elements, so the audience felt they were able to get an up close look at the product – encouraging trust and highlighting the tangibility of the product.

By the time Raine Scooters launched their Kickstarter campaign in November 2019, they had over 7,000 followers on FB, over 2,000 followers on Instagram, an engaged Raine community of over 600 members, and an email database with over 10,000 signups. 

Our multichannel marketing strategy translated into a fully funded campaign in a record 43 minutes. However, our work was not done. We increased our marketing efforts throughout the Kickstarter campaign with the project being over 800% funded by the end of the month-long campaign. 

Avoid launching silently

At Rumblr, we worked to ensure that they launched with as much noise as possible by building up an engaged community to ensure there’s dialogue between company and consumer – a relationship that now underpins Raine Scooters as they grow.

Thinking about launching your own Indiegogo or Kickstarter campaign? Feel free to get in touch and discuss how we can help make your campaign a success. Visit our website at www.rumblr.com.au, or drop us a line: hello@rumblr.com.au