Reward-based Crowdfunding Primer e-book

there are four types of Crowdfunding – donation-based (money provided to a charity or a cause), lending based (money provided to an individual that must be paid back), equity-based (money provided to a company in return for shares). Finally, reward-based crowdfunding (which is money provided in return for products, experiences, promotional items, or some other form of perks).

The Crowdfunding you will read about in this e-book is reward-based crowdfunding which is allows individuals in the “crowd” to contribute to an organization, individual, cause or artistic endeavor in exchange money for a perk, reward or experience.

The typical way entrepreneurs think of raising equity capital there is the same linear view taken about launching a reward based Crowdfunding campaign.

Most view a reward-based crowdfunding campaign like this:

 

1. Post a Campaign
2. Engage Audience
3. Get Funded
4. Track Analytics
5. Collect $$$
6. Fulfil on Perks/Rewards

 

Well you guessed it … this is only part of the picture not the whole scope of what is needed.

 

A reward-based  Campaign begins and ends with your idea. However, the first thing you have to ask is “Crowdfunding right for me and my company?” It is not suitable for all companies for a variety of reasons which I will get into later in my presentation.

 

Secondly, there is a considerable amount of pre-planning tasks that have to be undertaken before you switch on the Crowdfunding launch button. This is where many Crowdfunding campaigns fail and where entrepreneurs underestimate the time, resources and effort that it takes to launch a successful campaign. Two – Three months of preplanning is a must.

 

Thirdly, the statistics have proven that a campaign that lasts between 30-60 days is the most effective in terms of duration. Why? Because if you have done you pre-launch planning really well then this is enough time for your campaign to go viral without a fatigue factor setting in for your audiences.

 

Finally, even if you bag the money you wanted to raise, you still need to continue the trust and fulfill on the promises you made to your supporters.  Campaigning should not come to a full stop after 30 or 60 days.

 

You have to think of it in the context of the long term as you are creating a venture about which you are passionate and want to see sustainable. Who wants to see their passion die on the vine?

This e-book provides a comprehensive primer on what work and what does not work in planning a reward-based crowdfunding campaign.

Download this free e-book today!

 

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