It is evident that social networks have marked a turning point in the possibilities of communicating all kinds of ideas. The virtual community is also the clearest path to take for finding synergies, collaborations and being able to develop projects.The majority of self-starters and young entrepreneurs clearly opt for launching their projects online as well as looking for financing for boosting their business. ONe of the most popular methods is crowdfunding or collective funding which, through the possibilities offered by various platforms, allows you to look for collective collaboration for raising funds.
The way it works is simple: A project is promoted via a crowdfunding website, the participants involved in the project make small financial contributions and in turn receive compensations in accordance with their investment.
There are various types of crowdfunding regarding donations:
1 - Donation-based crowdfunding: collaboration is carried out without the expectation of any compensation or reward.
2 - Investment-based crowdfunding: provides an economic return in relation to the investment made in the project.
3 - Debt-based crowdfunding: involves fund-raising in exchange for the return of these funds when the established goal is reached.
4 - Perhaps the most innovative crowdfunding reward (profits), where the project creator offers a reward (in the majority of cases the use of the products) in accordance with the ongoing project.
The latter is worth giving a special mention to assess the important requirements for choosing rewards that will be offered to collaborators and sponsors.
1. Choose more than a reward. By basing it on the donation amount you can decide what to offer in return. Remember that the donation is important, as the reward will be exclusive
2. Share your campaign on social networks. Use all of the tools available for spreading your project, especially the social networks that are most in tune with your target audience. A good idea is to create profiles specifically dedicated to the campaign, so that you can inform people of all of the new products and users can follow you, as well as allowing the project to gain recognition.
3. Create a video and images to get across your idea. Audiovisual content is the most attractive on social networks, so if you're aiming to make a big impact then we recommend that you practice transmitting your ideas graphically or audiovisually. If your project has public figures working on it, then get them to create this material and mention them. This way you will get many more likes.
4. Be mindful of the image, graphic design and the general creativity of the campaign. Whatever your project is, it is essential to choose a logo, slogan or graphic image that represent your vision and promote your idea.
- 5. Use personalised products as a reward. Among the prizes, don't forget to add badges, t-shirts or bags for giving to the donators of your crowdfunding campaign. Furthermore, some products can be personalised using the name of each sponsor, which is an idea they will definitely love.
These are just five basic pieces of advice for helping you to boost your crowdfunding campaigns, and we're sure that they'll have given you some new ideas, so come on, get your projects going.
But the ideas don't just stop here. Don't forget to choose the platform that best adapts to your vision too (kickstarter, Indiegogo are the most popular).
- Here you can read a comparison between the two, or choose one of the suggestions by Forbes the International Business Times including FundedByMe.
We hope to receive all of your ideas and suggestions for creating merchandising for your next crowdfunding campaign.