Crowdfunding has definitely taken over our lives, be it funding your dream idea or be it funding your neighbor’s operation. As with any new and developing means to make things simpler, crowdfunding comes with its own set of pre-existing conditions and context.
It has become extremely easy for anyone to start a crowdfunding campaign. However, the most important part lies in knowing about what you’re signing up for. If you’re someone who has a vague idea about crowdfunding, then it is important to do your due diligence before you go ahead with a crowdfunding campaign. Crowdfunding platforms are usually for-profit platforms (not to say that not for profit crowdfunding platforms do not exist) and they come with their rules and regulations, it is best to know these three things before you choose to launch a crowdfunding campaign for your cause, be it creative, medicinal or entrepreneurial.
1- Know your platform
There are some platforms that deal particularly with creative causes, some with medical and some work extensively with entrepreneurial pursuits. Depending on your case, it is important to evaluate the platform accordingly. Most crowdfunding platforms usually charge a fee for them to host your campaign. You may also incur different expenses depending on the added services you sign up for.
These platforms also come along with their own target audience, if you set up a campaign for your medical fundraising in a creative platform, know that there’s a serious mismatch in your target audience that tags along with it. It is also worth understanding that niche platforms usually specialize in one particular type of fundraising and it is best to leverage that for the good of your campaign, in terms of context, reach, marketing and audience etc.
2- Know your costs for Crowdfunding
With platforms charging their fees and the expenses that are incurred for any marketing efforts or promotional efforts, it is vital to have a buffer amount. Always take into consideration the fluctuation in different currencies (if the platform allows for donations from abroad) and the money that will be lost on the levied tax (depending on where you live). It is important to think about the PR costs and the promotional efforts if your cause is creative or entrepreneurial in nature. Marketing has the potential for a game changer. So it is important to not skimp on that and leverage the funds required.
3- Know your audience
It is important to be able to translate the value of your campaign to your audience. Regardless of the nature of your campaign (medical, creative and/or entrepreneurial). It is critical to be able to convey the urgency of your campaign to your audience. It is essential to building trust, transparency, and openness for your campaign. This enables you to be able to connect with your audience. If someone is willing to donate money to your cause. Naturally they would want to know the details and the updates in the long term.
4- Understand The Risk of Crowdfunding
Understand that it is very important to be able to communicate your terms to your potential donors. It is of monumental importance to understand how you can communicate the terms of your cause. Empathy works well with medical causes. With entrepreneurial causes the pitch should revolve more around tangibility and with creative causes. It should revolve around your history with the creative field and the scope of your project.
These 3 things are inextricably linked to the topic of crowdfunding. It is important to voice your beliefs and start a movement through this practice. It is equally important to know what you’re signing up for while you’re doing that.