{"id":"7461","date":"2021-03-15T07:00:00","date_gmt":"2021-03-15T14:00:00","guid":{"rendered":"https:\/\/www.pickfu.com\/blog\/?p=7461"},"modified":"2024-01-24T16:10:00","modified_gmt":"2024-01-25T00:10:00","slug":"crowdfunding","status":"publish","type":"post","link":"https:\/\/blog.pickfu.com\/crowdfunding\/","title":{"rendered":"How to launch a successful crowdfunding campaign"},"content":{"rendered":"\n

No one had heard of the term crowdfunding<\/em> when an entrepreneur named Michael Sullivan first used it<\/a> in 2006. Since then, crowdfunding has grown into a multibillion-dollar global industry. The word and the concept are part of our daily lives. Scores of entrepreneurs take their ideas to Kickstarter, Indiegogo, GoFundMe, and other crowdfunding platforms with one goal: to raise enough money to turn those ideas into reality. <\/p>\n\n\n\n

Success in crowdfunding hinges on the support of the crowd \u2014 your future customers. In this article, we’ll delve into how to create and launch a successful crowdfunding campaign.<\/p>\n\n\n\n\n\n\n

What is crowdfunding?<\/h2>\n\n\n

Crowdfunding is an online method of raising money to finance a product, project, or business. Contributions come from a large group of people as opposed to a handful of investors.<\/p>\n\n\n

Types of crowdfunding<\/h2>\n\n\n

The two types of crowdfunding you\u2019re probably most familiar with are donation-based and rewards-based.<\/p>\n\n\n\n

In donation-based crowdfunding, people give money to your campaign without getting anything in return. In rewards-based crowdfunding, people get a reward or perk for contributing \u2014 for example, a t-shirt with your logo or a service related to your product.<\/p>\n\n\n\n

Equity-based crowdfunding, another type of crowdfunding, means that contributors to your campaign become part owners of your venture.<\/p>\n\n\n

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\"How<\/a><\/figure><\/div>\n\n

How does crowdfunding work?<\/h2>\n\n\n

Each crowdfunding platform works a little differently. In general, you set a monetary goal and time frame for your campaign. The platform on which you launch your campaign gets a percentage of the money you raise.<\/p>\n\n\n\n

Kickstarter<\/a> and Indiegogo<\/a>, two of the most popular rewards-based sites, operate on this premise: if you hit your campaign goal, you keep the money you\u2019ve raised. If not, your donors get their money back.<\/p>\n\n\n\n

Indiegogo also offers flexible funding, which means you can keep the money you raise, even if you don\u2019t reach your goal.<\/p>\n\n\n

The ups and downs of crowdfunding<\/h2>\n\n\n

Crowdfunding helps create a community for your product. It gives entrepreneurs who might have a hard time getting financing through traditional channels a platform to pitch their ideas and be heard. From board games to biodegradable shoes, there\u2019s plenty of variety and creativity to be found and funded.<\/p>\n\n\n\n

Of course, there\u2019s no guarantee you\u2019ll reach your crowdfunding goal. The hard truth: on average, only 22% of crowdfunding campaigns are successful, according to Fundera<\/a>.<\/p>\n\n\n

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\"How<\/a>
You could call this a wildly successful crowdfunding campaign. | Source: Indiegogo<\/figcaption><\/figure><\/div>\n\n

How do you set up a crowdfunding campaign?<\/h2>\n\n\n

A crowdfunding campaign starts with your product or idea. Your crowdfunding campaign page gives it shape.<\/p>\n\n\n\n

The key elements of a crowdfunding campaign page are as follows:<\/p>\n\n\n\n