As of 2023, the worldwide market for crowdfunding reached a significant valuation of 1.41 billion U.S. dollars, with projections indicating that it would surpass double this value by 2030.
This growth is expected to be driven by a compound annual growth rate (CAGR) of 14.5 percent. Notably, Kickstarter, a central crowdfunding platform, had initiated over 592,000 projects as of May 2023. This article will tell you about the popular practices for developing a crowdfunding campaign. Ready, let’s go!
What is crowdfunding?
Crowdfunding is a popular way for entrepreneurs and organizations to raise money. It involves bringing together a large group of people, usually online, who each contribute relatively little money to fund a project or venture.
It has become an increasingly viable option for entrepreneurs and organizations seeking to raise capital, enabling them to grow their projects and achieve success without relying on traditional financing options such as venture capitalists or banks.
What are the popular platforms to help with it?
People use several popular crowdfunding platforms to raise money for their projects. The most popular ones include Kickstarter, Indiegogo, GoFundMe, and Patreon. Each of these platforms has its unique features and advantages.
How to develop an effective crowdfunding strategy?
When raising funds for your project or cause, you need an effective crowdfunding strategy to help you reach your goals. There are several keys to developing the one you can get results with:
1. Find your crowdfunding audience
The first key is understanding what crowdfunders would be interested in backing your cause. It’s essential to create a plan tailored to your target audience and consider their interests, values, and capabilities when investing in causes they care about. Then, you can find funds for any company, either MLSDev – software development company, or some local business.
2. Develop strong relationships with donors
The following key is building relationships with potential backers ahead of time. Connecting with people who could be interested in supporting your project before launch day gives them a reason to become invested in the campaign’s success. It also allows you to learn more about their interests and preferences, so you can create a crowdfunding strategy that caters to them.
3. Represent your purpose: use media tools for that.
Another key is creating a compelling pitch video or other visuals to help potential backers understand your project better. Statista, the research group, shares that videos are the most popular format (almost 38%) in 2022, while writing takes second place with 17%.
People need to hear why they should care before they commit any money, so make sure you are producing content that communicates the core message of your mission in a way that resonates with viewers.
4. Keep involved people informed.
Finally, remember to follow up with backers after launch day. Keep them informed on the progress of your project and show appreciation when someone has supported your cause financially or otherwise. It will build loyalty and keep supporters engaged until the end.
Conclusion
By following these keys to developing an effective crowdfunding strategy, you can ensure your campaign is as successful as possible. With some planning and dedication, you’ll be well on your way to achieving your fundraising goals.
Author’s bio: Anastasiia Lastovetska is a technology writer at MLSDev, a software development company that builds web & mobile app solutions from scratch. She researches the area of technology to create great content about app development, UX/UI design, and tech & business consulting.
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