Crowdfunding More Marketing ThanFundraising: Opinion
By: Scott Steinberg
, 24 May 2012
Thanks to high-profile successes like the
and Double FineAdventure, crowdfunding has exploded ininterest amongst businesses as an alternativeto venture capital or angel investment.The recent passage of the
,whichlegalizes limited equity sales for publicly-backed projects, promises to further open the floodgates for enterprisingstartups. However, many inadvertently confuse these campaigns asfundraising efforts, because they call on the general public for support.Here are five reasons why crowdfunded endeavors are secretly moreakin to consumer marketing efforts.
1. You have to give to get in return.
If you simply ask for
contributions, and offer nothing of value in exchange, you’ll quicklydiscover why crowdfunding isn’t like running a charity fundraiser.
Backers expect meaningful returns in exchange for contributions
—
andthat means offering compelling rewards. Whether providing preorders ata fraction of retail prices, exclusive merchandize, or singular experiences(e.g. a cameo in your next creation or executive producer credits),meaningful incentives must be provided. Pricing options must also beincluded at, and spaced out between, all tiers from impulse buys to
splurges, to attract all backers. Ultimately, you’re selling something,
whether advance access to a software product, or the chance to appear
within a film’s all
-star cast.
2. Having a promotional plan is essential.
Many projects debut togreat fanfare then peter out just 48 hours later. Remember that launch is
only one phase of a project’s lifecycle. As campaigns can last 30 days or
more, creating sustainable buzz with fans and media is vital. Beforedebuting, you not only have to put actionable promotions plan in placethat steadily unfold over time and leverages multiple channels (press,social media, fan forums, etc.), you must also secure supporting assets inadvance. These could be screenshots, concept art, video testimonials
from notable personalities. Prior to starting, it’s also vital to understand
who your target audience is, their appetite for such outings and how tobest reach them. This requires market research and a clearly-definedpromotions strategy, just as with any traditional consumer marketingeffort.
3. Outreach must be constant and ongoing.
Upon debuting, your core
task isn’t just to keep chatter surrounding projects alive, it’s to sustain
that buzz and grow it. Not a day should go by that team members, fans
and/or partners aren’t updating, tweeting, posting news, calling on
prospective patrons, or reaching out to influential community membersand critics. Maintaining a running dialogue with backers is also vitalthrough direct messages and mass updates. New surprises,announcements and rewards must be introduced at regular intervals, asthe squeaky wheel gets the grease. Think of it as a virtual telethon if you
want. But since it’s one that lasts for weeks, and must constantly
compete for share of voi
ce, to keep the proverbial phones ringing, you’llhave to steal a page from marketers’ and social media strategists’
playbooks.
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