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Using Crowdfunding to Launch New Products

Have you an idea for a new product but lack the funding to make your concept a reality?

Using Kickstarter, or other crowdfunding platforms such as Indiegogo, to fund your business projects can be a great way to raise capital and gain exposure for your ideas. Here's a step-by-step guide to using Kickstarter effectively, but the principles are the same for any platform:

  1. Research and Plan: Start by thoroughly researching Kickstarter and familiarize yourself with the platform's guidelines, success stories, and best practices. Identify similar projects to yours and learn from their strategies.

  2. Define Your Project: Clearly define your business project and its goals. Determine the funding amount you need and how the funds will be utilized. Develop a compelling story around your project that you think will resonate with potential backers. Be creative, make it exciting, and let people see they have an opportunity to get in on the ground floor of something special.

  3. Create a Kickstarter Account: Sign up for a Kickstarter account if you don't already have one. Ensure that your account is complete and showcases your project effectively. Provide detailed information, images, and videos that communicate your project's value proposition.

  4. Set Your Funding Goal: Determine a realistic funding goal for your project. Consider the expenses associated with your business, production costs, and any rewards or incentives you plan to offer to backers.

  5. Craft Your Campaign: Design an engaging and visually appealing Kickstarter campaign page. Use high-quality images, videos, and graphics to effectively communicate your project's vision, features, and benefits. Craft a compelling story that connects with potential backers emotionally. It is important that this has the wow factor.

  6. Offer Rewards: Create enticing and relevant rewards for different levels of pledges. Consider offering exclusive early access, limited-edition products, discounts, or unique experiences. Make sure the rewards are attractive enough to motivate people to back your project. Wander through other successful projects and see what they are offering.

  7. Promote Your Campaign: The secret to a successful campaign is to drive traffic to your project—tons of it! Develop a comprehensive marketing plan to promote your campaign. Leverage social media platforms, email marketing, personal networks, and relevant online communities to spread the word. Go to similar Kickstarter projects and search Google to see what coverage they have received from bloggers, podcasts, or other media sources. Contact them and ask them whether they are interested in writing about your campaign.

  8. Launch Your Campaign: Choose an optimal launch date for your campaign. Ensure that all campaign components are ready, including compelling visuals, rewards, and a clear call-to-action. Coordinate a launch strategy to create momentum right from the beginning.

  9. Engage with Backers: Actively engage with your backers throughout the campaign. Respond promptly to messages, comments, and inquiries. Show gratitude and appreciation for their support and keep them updated on the project's progress.

  10. Maintain Transparency: Be transparent about your project's timeline, challenges, and any potential risks. Regularly update backers on the progress and address any setbacks or delays promptly. Transparency builds trust and credibility with your backers.

  11. Finish Strong: As your campaign nears its end, intensify your promotional efforts to maximize the funding. Offer limited-time incentives, showcase success stories, and create urgency to encourage last-minute pledges.

  12. Fulfill Rewards: Once your campaign successfully ends, start fulfilling the rewards as promised. Maintain clear communication with your backers regarding the reward delivery timeline. Deliver the rewards on time and maintain a high level of customer service.

Remember, crowdfunding platforms are not a guaranteed source of funding, and success depends on various factors, including the quality of your project, marketing efforts, and the engagement of your audience. However, following these steps and executing a well-planned campaign, will increase your chances of having a successful campaign.

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