This post on crowdfunding success tips answers the following questions for people or businesses thinking about using crowdfunding to raise funding:
"What are the common elements behind wildly successful crowdfunding campaigns?"
"Which platform is the best fit for my business or project?"
"What should I offer funders or investors?"
I cover these questions and more in the following 7 critical crowdfunding success tips below.
If you'd prefer video-based crowdfunding tips on equity crowdfunding, see this recent interview between Kay Koplovitz the Founder of USA Network and Springboard Enterprises, and myself.
Crowdfunding Tip 1: Pick Your Platform
As you're getting started with your fundraising and crowdfunding goals, the first place to start is to pick the platform you'll raise funding on.
To help you, here's a list on Forbes of The Top 10 Crowdfunding Sites for Fundraising.
Quick tips…
First, decide if you're doing a rewards-based crowdfunding campaign, or equity crowdfunding (where people become actual shareholders in your company).
Rewards Crowdfunding
If you're raising rewards-based funding (not investment), Kickstarter and Indiegogo should be on your list, but you should also be aware that there are specialty platforms and communities as well that focus more exclusively on things like music, healthcare, or non-profits.
It's best to pick among these rewards crowdfunding platforms based on the project types they focus on, the existing community of members already on the platform, as well as the way the platform structures their fundraising product.
What many people aren't aware of, or are confused by, are the differing fundraising products and how they're structured. In short, Kickstarter has a strong track record of success for creative projects, and their fundraising product has been an "all-or-none" fundraising product to date. This means that if you don't raise 100% of your initial funding goal, you don't keep what backers have pledged.
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