Trevor Baylis famously once said, ‘Convention is the enemy of progress’. While he proved the validity of his quote through his many inventions, it holds true for more than just science. Take, for example, the current capital sourcing landscape for businesses across the world. From crowd funding, text-to-give and marathons, entrepreneurs with business ideas are looking at varied means to rake in the money. Never before has running helped you raise money for a cause, has it?
What’s interesting to observe is the consistent and strong element of marketing principles across many of these new finance avenues. Which is why, it’s important for budding businessmen today to tie together their marketing drive with their fundraising goals to achieve synergy. There’s no better way to do that than using a crowdfunding platform. Crowdfunding essentially refers to funding a project by raising funds of varying amounts from a large number of people over an online platform by selling them a story – the story of your business, your idea and your vision. Over time, their investment results in a reward or return your business delivers to them .
Here are some ideations around this breakthrough method that prove how marketing principles play a strong role in funding.
Target Audience Research
The foremost effort in any crowdfunding exercise is market research. Your idea needs to connect with people for them to put their money on it. Think of funding a breakthrough VR headset enabled online game. Do you think a group of conventional businessmen would pay heed? Or are you better off pitching your story to new-gen thinkers who recognise the value of your idea? That’s where choosing the right community funding audience matters. Much like any and every marketing drive, it’s success lies in audience connect.
Marketing Collaterals
Stack up engaging marketing collaterals as a means of communicating to your prospects. This could involve a video presentation, a product demo or even e-mail marketing. It really depends on which medium does most justice to your product’s features. But one things for sure, there no getting through without making those marketing gurus work for you. Marketing stands at the crux of any Community financing exercise.
Market Research
Research similar projects to gauge what worked for those projects. It will also give you an insight into how best to structure your pitch. There are various co-financing communities where campaigns owners and successful crowdfunded entrepreneurs can connect you to their own community should they see promise in your offering. All of this begins with strong market research. That takes us back to how marketing is the force begin a successful pooled funding exercise.
Notable Investor Management
There’s a sure shot way to get more investors interested in your joint funding project. Simply have your existing notable investors involved in propagation. Word-of-mouth, if you may. One of the basic elements of modern marketing, word-of-mouth can help your crowdfunding initiative a great deal. A new-gen investor, a social entrepreneur or a brand to reckon with can simply declare their interest in you. The next thing you know, a score of interested investors are certain to flock your project online.
Data Analytics
A key element of crowdfunding are rewards to investors who buy into your idea. While you as a project owner would love to shell out hefty rewards as a token of appreciation to those who should solidarity to your idea, there’s going to be a lot of data management behind what you return to them. Crunching your way through percentage of rewards distributed, pushback of returns to business operations and total coverage of operational costs are just some of the many data sets you will have to play with to pin up a rewards percentage you aim to offer. This shows how data analytics and projections management is one of the foremost marketing activities in a crowdfunding lifecycle.
Crowdfunding is certainly changing the way funding changes hands in the modern business era. While most may believe crowdfunding is big on finance, there’s so much to show otherwise. Crowdfunding is that modern business financing method that flaunts the ideal amalgamation of finance and marketing. At the optimal balance of both these business functions lies the success of your crowdfunding project.
