How to setup a crowdfunding campaign

Crowdfunding is one of the most popular ways of funding a business idea, a cause, or a product. It’s a useful way to launch your companies without much capital investment but it needs to be done the right way.

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Here’s how to setup a crowdfunding campaign:

1. Develop your story

Crowdfunding is all about stories. People need a good reason to chip in. Unlike traditional websites where the focus is on products, people on crowdfunding sites like Kickstarter or Indiegogo want to know how you turned your idea into reality. Your explanation for needing their support is as important as the product you’re pitching.

2. Offer great rewards

Another motivator for people to back your project is the perks. But make sure to be fair with your rewards in terms of price points, and make sure you can actually fulfill them.

3. Set a funding goal

There are different funding models for each platform you choose to launch your campaign. Keep in mind that Kickstarter has an all-or-nothing funding model. If you meet or exceed your funding goal, you get to keep the money, otherwise, you don’t get anything. Platforms such as Indiegogo have a slightly different model where you get to keep the funding regardless of whether you reach your goal.    

Remember to think about how much money you need and be realistic. Most of the time, people who already know you are the ones that will fund your project. 

Image source: thinkbusiness.ie

Hi there, Larry Polhill here. I’m a recent graduate of the University of Florida. I’m heavily engaged in various volunteer work. Follow me on Twitter for more updates.