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A marketing team preparing to launch a crowdfunding campaign.
Kickstarter, an early crowdfunding platform founded in 2009, has been successful to say the least. According to Statistia Research, the convertible value of funding commitments from July 2012 to November 2022 reached approximately US$6.95 billion. This provided emerging entrepreneurs with a nearly risk-free way to test the viability of their products before actually building them. They also provided “unconditional” capital if they met their goals. So what has changed in the last 14 years? rather.
For one thing, by doing market research and helping build marketing campaigns, you can find other entrepreneurs who can actually help you succeed with these crowdfunding platforms. One company is LaunchBoom. This is a crowdfunding marketing agency that has funded over $100 million in campaigns. They use predictive analytics to assess the likelihood of successful fundraising. Then, based on your research and insights, build a marketing campaign and launch a crowdfunding campaign on Kickstarter or Indiegogo.
I recently had the opportunity to speak with Mark Pecota, Founder and CEO of LaunchBoom.
Why should entrepreneurs still use crowdfunding today? Crowdfunding is a great way to de-risk product inventors/creators. Traditional product launches require significant financial investments to build product inventory prior to launch. But with crowdfunding, that investment can wait. All you need is a functional prototype. Crowdfunding allows you to pre-sell your product, collect the money, and then manufacture it.
What do entrepreneurs not understand about crowdfunding? Crowdfunding launches are actually earned during the pre-launch stage of the campaign. Instead of investing in inventory, you should invest in marketing. The most important factor for success is having a large enough mailing list before launching the campaign.
How do I build a great mailing list? To build your mailing list, we recommend creating a booking funnel and driving traffic with meta ads (Instagram and Facebook). This funnel allows you to collect email addresses, but more importantly, people can pay a $1 deposit to secure the best discounts when your product launches. It turns out that someone who pays a $1 deposit is 30 times more likely to make a purchase than someone who only provides her email address. Building a potential customer list in this way can help you raise money faster.
What is your most important goal in crowdfunding? Achieving your overall fundraising goal is great, but raising money quickly with crowdfunding is actually important. Bring in organic traffic. And because the amount you raise is public, it gives future visitors confidence that your campaign will be popular, increasing your overall conversion rate.
What happens after the fundraiser? Remember, crowdfunding is only the first step in your overall goal of bringing your product to market. Done right, you can produce your first product with confidence that your customers will need it. You can leverage your early successes and move into e-commerce branding and selling, which is where the real company journey begins.
What are the key things entrepreneurs must get right in order to run a successful campaign?
– Develop products that uniquely solve big problems.
– Make your product stand out in the market.
– Drive traffic through paid media (meta is great for lead generation).
– Collect email and $1 deposit in booking funnel.
– Reach your fundraising goals on day one with email marketing.
– Make the product you said.
– Deliver the product on time.
“Since launching LaunchBoom, we have met many entrepreneurs who are trying to find success with their crowdfunding campaigns,” says Mark Pecota. Who succeeds may not be based on the first best product, but may be based on the underrated Steve Jobs words.“Half of what separates successful entrepreneurs from unsuccessful ones is sheer perseverance.‘
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