Crowdfunding - SDBS
Effective Consulting
06.08.2017

Crowdfunding

Crowdfunding is a process of collecting money in the Internet from donations of people, who share your passion for your Project and want to support you. Crowdfunding allows fundraising with preorders, ownership sharing and donation.

There are several crowdfunding platforms in Kazakhstan (start-time.kz, baribirge.kz). However, fundraising and investment through these platforms have not been adopted as a culture yet, for this reason projects need more time to collect even small amounts of money.

At the international level, crowdfunding is the most popular and serves as a catalyst for new enterprises. The most famous international venues are Kickstarter.com and Indiegogo.com, with them a huge number of successful start-ups were launched.

This article tells about the basics of fundraising on crowdfunding platforms, for example, Indiegogo.com, as Kickstarter.com is not yet available for the Kazakhstan market.

Indiegogo is a large platform that allows entrepreneurs to conduct marketing campaigns and attract investors. The main purpose of this community is to raise funds for any projects: technological, creative, entrepreneurial or associated with charitable activities.

Crowdfunding-1

Before starting your campaign

Set a realistic goal

You should be able to raise 30% of the amount through your online network. Strangers will be more likely to invest if they see the involvement of other people.
Keep in mind, people want to be part of a successful campaign and usually do not stop funding after reaching the goal.

Set duration of your campaign

A longer campaign does not guarantee the collection of more money. The longer the campaign, the more difficult it is to maintain the pace. The most successful campaigns last 40 days.
Leave at least two weeks between the end of your campaign and the date when you need the collected money.

Define your financing model

When starting a campaign, a choice of 2 financing options is provided: fixed and flexible. Changes after the launch of the campaign are not possible.

  • Fixed financing – You will receive the contributions only after the financing goal is reached
  • Flexible financing - Contributions are saved regardless of whether you have achieved your goal or not

Create your pitch

Indiegogo allows you to show your creativity and share the idea with the world. "Stage Pitch", "video pitch", "one-page pitch" and other tools will help convey your message. Tell people your unique story and explain what its peculiarity is.
Put yourself in the place of your target audience to understand that it will convince them to invest in your project.

Making the Perks
  • The name, description and conditions for receiving gifts should be clear.
  • Make sure that giving gifts does not delay the start-up of the business.
  • Use words such as "limited edition", "exclusive" and "early order".
  • Create gifts that will create an emotional need and will be attractive to the investor / consumer.
  • Consider a strategy for giving gifts to people with different incomes. (For example, mugs for an investment of 1,000 KZT and T-shirts for 10,000). Do not overstate the conditions for receiving gifts.
  • Be sure to tell the depositors to include the shipping cost, if this is a physical thing.

Campaign launch

Check your Bank account

If you want to receive payments through PayPal, make sure that your account is set up correctly.

If you accept payments through a credit card, then the notification will be sent by e-mail as soon as the first payment is received.

Fundamental indicators

Strive to increase the activity of your campaign for at least one contribution more than yesterday. It is proved that 85% of the campaigns that reach their goal get a first payment within one day.

Advertise

The advertisement of your project can be done through e-mail and through social networks.


Keep the pace

Add more perks

They will serve as a stimulating aspect in the duration of your project.

Continue looking for partners/investors

It's never too late to find like-minded people who will contribute to the success of the campaign. (Especially among public figures)

Be sure to notify supporters one week before the end of your campaign.

Give thanks

Send a personal message by e-mail every time you receive a contribution. 62% of the campaigns that achieve their goal have repeated donations from the same sponsors.

Transparency and performance

Make sure that your participants are well informed about the status of their rewards. Keep in touch with your contributors and followers through your social networking channels or your website / blog.

The article was prepared with participation Middlesex University student, Azhar Rakhmanova.

Leave a Reply

Your email address will not be published.