5 Tips for Crowdfunding During the Pandemic
Both Kickstarter and Indiegogo report people are continuing to support fundraising projects. Here's how to adjust your funding strategy for the times.
By Sohail Khan •
Opinions expressed by Entrepreneur contributors are their own.
With the economy in a holding pattern and businesses shutting down, you may be wondering if a crowdfunding campaign can succeed right now. Are people going to be interested in funding your next cool gadget or product?
Kickstarter's numbers reveal that backers are still showing up to support their favorite projects. Indiegogo crowdfunding campaigns are also thriving.
To those afraid to launch a crowdfunding campaign, I say this is an excellent time to go ahead. While people are cautious about how they spend their money, most are getting on with life and resuming activities they may have paused — including funding projects. And as the number of live campaigns is lower than usual, you can take advantage of less competition and leverage the platforms' deadline extensions and reduced fees.
Here's how to make sure your crowdfunding campaign is a success.
1. Focus on community
Community fuels Kickstarted and Indiegogo campaigns. If you have a strong community, build on it. Engage with your audience. Find new ways to pique their interest and regularly update them about product delivery or delays. Consumers have more time to browse and buy products than they used to, so they'll seek out something that resonates with them. Attract attention with the right messaging and product discounts.
2. Level up promotion
As people make more deliberate money decisions, your job is to be more convincing in your pitch. Give backers strong reasons for funding your project. Invest in Facebook ads, doing aggressive A/B testing to get your messaging and visuals right. Spend smartly on social advertising, not more.
Related: How to Kickstart Your Capital Funding
3. Increase your outreach efforts
Start or ramp up how often you send out press releases, reach out for influencer marketing, and guest post, to name a few outreach strategies. People are spending more time online, scanning for content. Address the demand by sending out two guest posts a week instead of one, for example. Add to your social media content, engaging with your audience and showcasing the impact your product can have.
4. Plan for a relaunch if you are having supply chain issues
If your product relies on supplies from a region with production slowdowns and you have limited options for workarounds, communicate that to your community. Most likely, they will continue to support you through the delay.
Related: 12 Key Strategies to a Successful Crowdfunding Campaign
If you see a dwindling in your funding despite the communication, marketing and promotion, plan for a relaunch. A relaunch in the next few months may prove to be more effective than stalling a campaign that can't deliver because of supply-chain issues.
5. Communicate
Regardless of your crowdfunding journey and current status, communication is key to running a successful campaign. Talk to your suppliers and shippers. Keep your community informed, communicating any setbacks or issues you experience. Going silent when you encounter challenges will not help you achieve your fundraising goals.
No matter what your situation, give your backers the benefit of knowing the truth. They will likely understand and may try to meet you where you are. Continue to press on for the best outcome and keep involving your backers. That's how to succeed today.
Related: Beyond Kickstarter: 10 Niche Crowdfunding Platforms for Startups
