3 Business Lessons Learned From Crowdfunding Campaigns
I love the concept of crowdfunding. People with an idea can get funding for their projects by appealing to the masses, usually via the Internet. There are a couple of sites that facilitate this – Kickstarter and Indiegogo are two of them.
As an entrepreneur, I think it’s great to see the wonderful ideas others are coming up with. And I find a sense of satisfaction in contributing to another entrepreneur getting their start. This doesn’t mean crowdfunding isn’t hard work. I’ve contributed to a handful of campaigns over the past couple years and I’ve seen how hard it can be to compete for funding. There are a few things I’ve seen successful campaigns do that we should all take note of:
Tell people what’s in it for them. The first campaign I contributed to was for Top & Derby. The company makes canes. Yes, walking canes. As someone who has walked with a cane before, they spoke to my heart about giving cane users a dignified, stylish, and functional walking cane. You can check out their story here. The takeaway is tell people who you are, what you stand for, and why they should support you. Supporters want to know the WIIFM.
Keep people engaged and informed. Another story that spoke to me is Frameri. This company manufactures interchangeable eyeglass frames and lenses – a super cool concept that could revolutionize the way we think about eyewear. They understand the importance of keeping supporters connected to their project. Frameri shared content about selecting the right frames, the status of frame production, and even held a promotion to refer a friend and get a pair of frames for free.
Thank people! I never knew so much technology went into socks until I contributed to the Bombas campaign. Bombas socks were created to not only provide the ultimate sock wearing experience but to give back to community. For every pair of socks purchased, a pair is given to help the homeless. (FYI – According to The Salvation Army, socks are often times the most requested clothing item at homeless shelters.) Bombas thanked supporters by creating contests, sharing photos, and offering additional discounts.
Anytime we have to get the support of others – whether it’s buy-in for a new initiative or the budget for a project, we need to remember our success doesn’t stop when the budget or the buy-in is received. We need to continue to engage our supporters so they continue to support us.
Image courtesy of HR Bartender
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