Kickstarter Campaign: Should You Use Crowdsourcing On Your Business Idea?
Are you launching a new business?
Running a business in the digital age gives various opportunities for growth. Many entrepreneurs enter the business world with bright eyes. However, with more than 32.5 million businesses in the US, it can be hard to grow yours.
If you’re launching a business, you may have heard of Kickstarter. A Kickstarter campaign is one of the most powerful tools you can have. With the right strategy, you can grow and market your products.
Should you use Kickstarter? In this article, we show you the pros and cons of starting a Kickstarter. Read on to discover some valuable Kickstarter campaign tips.
What is a Kickstarter Campaign
Kickstarter is a well-known funding platform. Most people use Kickstarter to launch creative products. Some common projects include film, music, art, design, games, and technology. On Kickstarter, you can find non-creative projects like Viril Pills and other products.
When you start a campaign on Kickstarter, you begin by setting a funding goal and deadline. People who like the project can pledge money to make it possible. Backers’ credit cards get charged when the deadline expires if the project succeeds.
However, if the project doesn’t meet its funding goal, no one gets charged. Funding on Kickstarter is a leap of faith. If successful, Kickstarter charges a 5% fee to the collected funds.
Why Do People Support Kickstarter Projects Anyway?
Backers on Kickstarted can pledge money for a variety of reasons. Some backers go to Kickstarter to support their friends’ projects. Other backers support people who they’ve been following for a long time.
Some Kickstarter campaigns offer rewards if they reach success. Backers who find interest in these rewards can pledge money to win them. Some rewards include a copy of the project and a limited edition or experience.
Some projects on Kickstarter succeed and make money over time. However, backers don’t pledge money to get financial profits. Many backers support projects only to help make them possible.
Pros of a Kickstarter Campaign
Kickstarter is a great platform to launch a new business or product. Many creative creators use this platform to bring their projects off the ground. However, other businesses may also use this to presell their products.
Are you planning on starting a Kickstarter campaign? Read on below to discover some of the pros of starting a Kickstarter campaign.
If you present valuable rewards, Kickstarter can be a great way to earn money fast. Getting an investment can be a long process. Finding the right investors can take between weeks to months.
This doesn’t include negotiating and finalizing deals. Business launching is a crucial phase that determines the outcome of your business. The average small business in the US needs at least $10,000 for startup capital.
For some entrepreneurs, getting an investment would take too long. If you need to make money fast, consider starting a Kickstarter campaign. With the right rewards and strategy, you could earn thousands in a few weeks.
Leveraging small donations could not be possible without crowdfunding. With crowdfunding, you can combine small donations to get a larger sum.
Maintain Control Over Your Business
Starting a Kickstarter campaign to launch a new project or product gives you control. If you work with investors to get your startup capital, you may need to give up some control over your business. Some businesses hand over 50% of their business to pay back their investors.
Crowdfunding is a great way to earn money and launch products. All the while, you maintain control over your business. Equity crowdfunding is a new form of crowdfunding.
However, many crowdfunding companies don’t give equity to supporters. Kickstarter allows you to raise money without giving up ownership.
Build a Supportive Community
One of the benefits of starting a Kickstarter campaign is that you reach a larger audience. It’s a great platform to introduce ideas that backers may not have considered before. Many communities on Kickstarter already have a large network of supporters.
Kickstarter campaigns often get more exposure than other crowdsourcing companies. If you’re looking to build your audience, Kickstarter is the way to go. Another benefit of Kickstarter is the number of supporters a single project can get.
Backers on Kickstarter don’t get equity or financial profit from supporting projects. Kickstarter is home to many passion projects like films, games, and art. Launching a campaign on Kickstarter can be a fun experience.
Supporters create a lot of excitement towards the launch of a campaign. On Kickstarter, you can find an active and supportive community. When a backer pledges money to your project, it means they support your vision and wish to see you succeed.
This can give a great boost to your self-esteem. If your campaign succeeds, you’re sure to have a loyal following from your backers.
Enhance Your Brand Message
When releasing a new product on Kickstarter, you also share your brand’s message. This is one of the factors the encourage potential backers to support your project. It gives your business the opportunity to post press releases on your socials.
When visitors come to your Kickstarter page, you only have one chance to impress them. Before the day of your launch, it’s smart to plan your marketing first. Start by fleshing out some eye-catching visuals to attract potential backers.
Good visuals and text can impact a person’s decision. Include a brand message that will inspire your audience and bring in new followers. You can inject some of your personality into the Kickstarter campaign.
Introducing yourself in a Kickstarter campaign can humanize you. You can connect emotions with an unknown audience. Emotions are a large factor in making decisions.
Some businesses use customer testimonials to convince customers to buy a new product. You can use this to convince your audience to support your cause. A little creativity in your campaign can go a long way.
Remind your current following about your new campaign. This helps you build awareness of your new project or product and brand.
If you can’t afford investments or can’t wait for it, crowdfunding is a great alternative. Starting a crowdfunding campaign requires only a low investment. Kickstarter does not require you to fulfill rewards if you don’t reach your funding goal.
Kickstarter is a free platform that does not ask for upfront charges. The only costs you need to pay are the internal expenses from creating and marketing the campaign.
Otherwise, you have nothing else to worry about if you don’t reach your goal.
Even if you don’t reach your goal, your Kickstarter campaign can acquire a lot of attention. Many online publications and tech magazines visit Kickstarter to see what’s new. Many individuals check out new and active campaigns.
If your campaign gets noticed, it can generate free press. Even if you don’t meet your funding foal, you can still grow your brand in this manner.
Part of the low-risk aspect of a Kickstarter is that deadlines are short. You can run a campaign on Kickstarter for only a maximum of 90 days. If you’re under a tight schedule, you don’t need to extend your fundraising efforts.
You can also use these deadlines to your advantage. Many businesses use Kickstarter to give their launch an extra boost to get over the top. You can either launch a Kickstarter to give you a headstart or an extra push.
Part of gaining supporters is remaining transparent with them. Supporters may regret pledging money to your campaign if you don’t give them updates. One of the benefits of Kickstarter is that it’s a transparent platform.
Kickstarter encourages updates from creators to engage with their supporters. It’s easy to communicate with your supporters using Kickstarter. If you want to update your current backers on project updates, you can do so on Kickstarter.
A Kickstarter campaign can also give you validation from your backers. Kickstarter allows creators to communicate with their backers and vice versa. You can ask your supporters to validate your concept before you fully invest in it.
Of course, this does mean you need to constantly communicate with your backers. Even when the going gets tough, keep them in the loop. Don’t scare backers with long stretches of silence, such as the incident involving the Mighty No. 9 campaign.
Easy to Use Technology
Many crowdfunding platforms use technology to provide their services. Even if you’re not an expert, it’s easy to set up a Kickstarter campaign. Kickstarter offers an easy to use interface.
When you start a live campaign, you can keep track of how others are interacting with it. Kickstarter will give you up-to-date statistics. You can promote your campaign through a variety of channels.
You may also purchase a domain name to redirect users to your Kickstarter campaign. You can also embed this link into your business website if necessary.
Cons of a Kickstarter Campaign
There are many benefits to starting a Kickstarter campaign. However, there are also some disadvantages. Review these cons of a Kickstart campaign to decide if it’s the right decision for your brand.
Not Everyone May Understand It
Kickstarter is a popular campaigning format. However, it’s also relatively new to the business landscape. If you’re starting a Kickstart campaign, it’s best to aim for a certain audience.
Games, films, and art are more popular around a younger audience. Many older generations may not understand the concept of a Kickstarter campaign.
If you happen to gather a large following on your campaign, expect a lot of emails. Many people who don’t understand the concept of crowdfunding may come to you. You may also spend a lot of time responding to complicated questions.
It can take a few hours every to respond to the daily email you receive. Do you think you don’t have enough time to answer emails? Consider some thoughtful planning before your launch.
It’s true that a Kickstarter takes less time than a traditional launch. However, starting a Kickstarter campaign will still take time. Many creators on Kickstarter underestimate the time that goes into planning a campaign.
Before you let your campaign go live, consider the time you have. Set aside an adequate amount of time to prepare and finish your campaign. One of the benefits of Kickstarter mentioned earlier was that it’s a low-cost ordeal.
However, you may still need to invest some money in launching your program. Expenses can go to preparing a model of your product or making promotional material. Set aside a budget for promotional photography or videography before your launch.
Copycats and Thieves
Launching a project on Kickstarter means that your idea isn’t finished. For some, this can be a risky decision. Starting a Kickstarter campaign for a new product gives competitors a look at your plans.
Any idea on the internet is up for grabs. The only thing that puts you apart from copycats and thieves is your execution. If you want a successful campaign, put some careful thought into your execution.
If you’re worried about copycats, consider getting a patent. Be ready to invest in bringing an infringer to court if you decide to get a patent.
Tips for Starting a Kickstarter Campaign
With the right strategy and decisions, you can make a successful Kickstarter campaign. Is this your first time running a crowdfunding campaign? Try these tips for running a successful Kickstarter campaign.
Stay in Contact With Your Backers
Posting frequent updates on your current progress will make your current backers happy. It can also convince others to start supporting your campaign. Answer as many comments and messages as possible and keep your current backers updated.
Reward Your Backers
Setting up rewards is a great way to engage with your supporters. You can reward supporters who give you a higher donation. You can offer merchandise like t-shirts, hats, or other freebies.
This gives your backers a sense of community with your campaign. Ensure that your rewards are realistic but beneficial to your brand.
Launch a Successful Kickstarter Campaign Today
Starting a Kickstarter campaign is a new but effective method of boosting your business. Are you planning on starting a Kickstarter campaign? Here are some of the pros and cons of running a crowdfunding campaign.
Thank you for reading our article! Looking for more tips on launching your business? Check out our other blog posts about building your brand.