Planning to build a hardware prototype, create a documentary, raise donations for a social cause or simply help a friend achieve his dream goal of climbing a mountain. Crowdfunding could be one of the easiest ways to raise funds for your project, if done the right way.
However, most people who take this route encounter failure in the first few projects and they are not able to achieve the goal of raising a particular amount of funding.
Here are the five tips shared by Crowdera CEO Chet Jain on how to raise money for your campaign through crowdfunding.
Crowdera is a free crowdfunding platform that helps people to raise funds for their projects.
What is crowdfunding?
It is defined as “solicitation of funds from multiple contributors through a web-based platform or social networking site for a specific project, business venture or social cause.” In short, people lend money to support a cause or an idea.
5 Tips to keep in mind while crowdfunding -
Tip 1: Why you want to raise the money?
Chet Jain says that before raising money from a crowdfunding platform one should know why you want to raise the money. Why you really need the money? You have to let your contributor know how much money you are raising and how you are going to utilize the raised money.
There should be 100 percent transparency between you and your contributor. One should always have a pre-launch strategy before raising money through crowdfunding.
Tip 2: The Pitch and the story
A good way to pitch your story is to show a visual or create a video. He says that the story or the video should be emotional.
Sell your emotions to the contributors or the donors on the platform. Tell them why it is interesting for them to contribute to you.
Tip 3: Build relationships
You are raising money for your campaign and project. The most important thing for you is to build relationships with people who are contributing you.
Keep updating them on social media, tweeting about it on the social platform. For example, if you are making a film, you can call the contributors during the shoot, or give them premier tickets.
Tip 4: Planned marketing and outreach
Plan a marketing strategy for your campaign. Before launching your campaign, you can take help of your family and friends and spread the word about it. Your first few donors can be your friends and family members.
You can use different social platforms like Twitter, Facebook, Instagram to increase your reach and do a soft launch.
After your soft launch, you can take help of a PR agency to spread a word about your campaign through different media channels.
Tip 5: Constant engagement
Even if you have achieved your target but don’t forget to constantly appreciate and thanks to your donors. Give them an individual shout out on a various social media platform. Show them your gratitude and engage as many audiences you can.
Keep updating about your campaign on social media and making it transparent for everyone who has funded you.
(In pic: Bollywood director Rajat Kapoor is using crowdfunding to produce his upcoming film called RK/RKay)
Govt's stance on crowdfunding businesses in India:
The Securities and Exchange Board of India (SEBI) is close to finalizing the norms for crowdfunding in India.
According to reports, contributors may have to seek government's permission before investing via crowdfunding platforms.
They will also have to provide the relevant information to other contributors in the company.
Thus while raising funds for social causes and creative works might be easier, raising money for a business in India via crowdfunding falls in a grey area right now due to SEBI's new norms.