Crowdfunding – the clue is in the name, as funding is an essential part of every campaign. But the buzz is of equal importance. If you’re launching anything – a new project, product or movie, it’s imperative that you find out if there is a demand early on. Crowdfunding is a great way of seeing if there are any takers for a new idea. It really is a low-budget, low-risk method of testing your market.
Crowdfunding makes it possible for project creators to build a string of followers and gather support. While funding will help a product prosper financially during the campaign, it is the community of followers that sustain a business and make it successful. Furthermore, supporters can create a buzz on social media by sharing a campaign and talking about it. Coverage from the press may also be guaranteed. For instance, UK crowdfunded projects Kano (a computer and coding kit) and Codlo (a home sous vide cooking machine) received a lot of press coverage which helped both come to fruition.
Crowdfunding can be used as a marketing and promotional tool as campaign creators reward backers with the product they are crowdfunding. Feedback from supporters can be very useful. In the unfortunate event that a product is not funded, a campaign manager can view contributors’ responses for tips on what to improve for relaunch. This could be seen as a type of product development and market research, helping the creator study the demographic of individuals interested in the product.
So it’s not all about the money. And while we are not disputing its significance, there are other elements that can be useful for your campaign and your product. When a groundbreaking product is in development, getting the public involved can be invaluable. The audience is essentially the backbone of the project, through their support, feedback and suggestions – and of course, their hard-earned cash.