So like we said in our previous blog post, today we would like to talk about the key factors to success in crowdfunding. We are going to give you a number of tips and recommendations on how to succeed on our InoCoin Platform, but doing diligent research on your part is mandatory.
So without further ado, let’s get started with our 5 tips for crowdfunding:
1. Preparation is crucial
As with any large project, preparation is everything. Crowdfunding, especially if this is your first time, is hard work.
You should, also, research your competitors to see what kind of interest there is in related businesses or ventures. If investors are showing no demand for a product that is similar to yours, try to figure out the reason for that. Is their sales department lacking? Or is there simply no demand for the product or service they are selling? The more intelligence you can gather, the better, as you will have a better base to build your own strategy on.
2. Maintain trust
Another key aspect of preparation is making sure your calculations are in check and valid. The last thing you want is to reach your goal of $50,000, only to then realize you underestimated it by a lot – and have to start a new campaign asking for an additional X amount. As well as setting you back, it also won’t build trust between you and your investors.
Don’t throw false claims around, either – each incentive you promise and every claim you make about your product needs to be true and delivered. If you hit unavoidable bumps along the way, be transparent and communicate – bad news is better than total silence.
3. Tiered rewards
You will have to entice perspective investors with additional rewards for their donations, known as perks.
Usually, these perks are tiered depending on how much someone invests. For example, say you are trying to crowdfund the production of a certain product; you could offer a tiered rewards system based on the following:
- Low-tier backers
- Middle-tier backers
- High-tier/premium backers
You can craft your perks any way you want; the important thing is to offer some sort of equal value for every investment. Quality perks entice people to give more funds, so don’t forget about this part of the process.
4. Promotion is everything
The more exposure you can achieve, the better. Aggressive marketing tactics work wonders for campaign promoting, so don’t slack off on this aspect.
This should continue throughout the whole campaign, with focus on these areas:
- Social media: Facebook, Instagram, Twitter, Steemit, etc – hit those with full throttle to fully leverage the power of our digital age
- Media: Contact influencer and news portals which may be interested in writing about your campaign and product.
- Website: Websites make you and your project look more professional and also allow you to give a better presentation of your idea
- Your own circle: Friends, family, friends of friends, etc, word of mouth spreads fast, so don’t forget about good old face to face
5. Promises are not meant to be broken
Never hold back on your promises and always try to overdeliver. Investors will appreciate that and you can be sure that word will spread fast. Even if everything is moving forward without a bump in the road, you should always focus on keeping everyone in the loop with current progress updates – good communication is the key ingredient of trust.
Well, that about concludes today’s blog post. We hope you have learned a lot from this and we urge you to keep learning and doing your own research every day. Remember, hard work must lead to progress!