Crowdfunding is going big and there is no question about it – over $34 billion are already raised this way. This unprecedented growth shows a clear trend in the number of small businesses and non-profits going online to tap the crowd. In 2015 more than 3.3 million people around the world contributed to new projects. Two million of which were new backers (Kickstarter). The harsh reality however is that most crowdfunding campaigns fail – less than 37% reached their goal on Kickstarter (mid-2015).
Is a great idea enough?
Don’t get over-hyped by the successful stories that flood the media, chances are you will fail and this is not because your idea sucks. Do you know the components of a good campaign? Do you have a marketing plan and the right tools?
Don’t just wait to get lucky – you cannot expect people to stumble upon your product and support you just because you are cool. Observe and get to know your audience. If you don’t have an audience – create it. Otherwise no one will see your amazing video or appreciate your art. Reward is your best asset. This is important! This is what motivates the crowdfunding community. Don’t just present your product, be creative – use word of mouth.
A Great example for successful Pre-Order Crowdfunding campaign is related to a product called “Coolest”. Their campaign succeeded twice in reaching the goal. Created by Ryan Grepper in 2014, the Coolest Cooler added a blender, Bluetooth speakers, a cutting board and a USB charger along with a food cooler. “When I launched my first campaign for the Coolest last November, I thought that if you started with a good idea, people would find it and success was inevitable,” Grepper told GeekWire. “When the campaign failed, I took a hard look at what went wrong. I did not give up.” Exactly because of this, Coolest is one of the most prominent examples for successful Pre-order campaign.
How to use the power of referrals in the era of Pre-Order Crowdfunding?
The first thing is to find the most suitable online platform for group funding. For instance Celery allows you to sell your crowdfunding products before they are ready to ship. Praze now provides an effective referral solution which can be used directly with Celery. You can use Praze and Celery together to orchestrate a referral program for your product and boost sales by using the power of word-of-mouth. No developers or expensive e-commerce website are needed. This is a good solution for small projects and start-ups: innovative products, artistic projects, exhibitions, music videos, recordings, inventions. To boost your business you need to think about how to encourage people who have confidence in your product. Referral programs are great way to attract loyal customers. For that reason Pre-Order Crowdfunding and Referral campaigns go hand in hand.
The Next step is to publish the project. This step is critical to get your audience:
• Engage the people in every social channel.
• Keep it personal and use a video to present the idea.
• Do not neglect the mass media. Send traditional press releases and story pitches to broadcasters, newspapers and magazines that are interesting to your target audience.
• Learn everything you can about your market and your customers and their needs before you start your crowdfunding effort.
From what has been said about successful Crowdfunding campaigns, it is clear that there is no success formula. You need energy and belief in the future. Also you have the opportunity to fulfil your business plan by using the advantages of crowdfunding and referral marketing together. By integrating Praze and Celery you can utilize the power of word-of-mouth for a successful e-commerce business.