1. Pick your project
A crowdfunding campaign needs to be specific, with a clear outcome. This could be launching a new service, creating a new product or holding an event. It should also be time-limited.
2. Write your budget and set a realistic funding target
You need to be clear about how much money you need and where it is going to go. As well as asking for funds you can also ask people to donate time and skills towards projects.
You also need to include any commission you’ll need to pay to the crowdfunding site and budget for any rewards.
3. Prepare your pitch
You’ll need a short video explaining what your project is, what you need the money for and what difference you’ll make. Your pitch needs to be clear, concise and grab attention.
4. Find a platform
A dedicated crowdfunding platform will take the pain out of managing financial contributions. There’s loads out there to choose from.
You’ll need to decide between …..
donation only or rewards for contributions
With rewards based crowdfunding in return for backing your project people contributing usually receive a ‘reward’ from you. You could give thanks in your annual report, invite people to a special event or offer a gift.
There’s also loan and equity crowdfunding
all or nothing or keep it all
Research shows all or nothing campaigns – where if you don’t reach your target you don’t get any of the funds raised – tend to be more successful, than keep it all campaigns.
Most crowdfunding sites offer an ‘all or nothing’ rule. You’ll need to hit your fundraising target for the money to be released to your project, so be realistic about what you can achieve from your backers.
5. Start your campaign
You’ll need a coordinated online campaign to get people to your crowdfunding page and donating. It shouldn’t be a surprise – let your supporters know before you launch what to expect and when.
Then invite your community through email and social media to back the project with pledges of cash. Encourage people to share your campaign and when they donate.
Try to get your most loyal supporters contributing right at the start to show demand, others might be more likely to give.
6. Keep in touch
Keep your supporters updated about the progress of the campaign and how close you are to the target. Thank them when they do contribute, let them know what difference their money will make.