Episode 033: Crowdfunding for Capital & Why I’m Using It

In this episode, I talk about what crowdfunding is, including some specifics to different platforms, and also why I am going to be using a crowdfunding campaign on my next project and brand.

In short, I need at least $30k to fund my next project, which will be a major brand of mine and the focal point of my businesses. I could borrow it from a friend/family, I could take a loan out, I could find an investor who will take a cut of my brand, or I could seek crowdfunding as an opportunity to raise the money.

What is crowdfunding? It is a method of getting funding from consumers to start your project instead of any of the above solutions. Yes, it is that black and white: every day consumers will voluntarily pay you money in return for having your product created and eventually available on the market. It doesn’t matter if the product is a new tech gadget, software, a book, studio album, movie, or even a new approach to audio headphones. The market desires innovation constantly, and if you can create something that is unique and attractive to the market, they will pay it’s full start-up costs if they deem it worthy.

I am in the process of creating a brand that will be launched via Kickstarter, a crowdfunding campaign platform. Why Kickstarter? A lot of reasons, but primarily because research shows that their traffic is generally interested in products similar to what I am building (more on the specifics in future posts/podcasts). Also I like the platform better for what I’m doing in terms of aesthetics, reach, perk options, campaign page functionality, etc. For a lot more detail on these specifics, read and learn from the awesome dudes over at The Crowdfunding Formula.

What are you building, and how are you funding it? If you are short on funding, consider crowdfunding as an opportunity to get the financial backing that you need. Keep in mind that in order to succeed with a crowdfunding campaign, you will likely need the following:

  1. A prototype that has gone through the ringer and had some of its kinks worked out

  2. An audience to launch the campaign to

  3. Advertisements via Facebook or other high traffic platforms (Facebook and Instagram work best I’ve been told/read/learned)

  4. A deep understanding of WHO you are trying to market to in order to tailor THE ENTIRE CAMPAIGN to them

Check out the podcast, take some notes, and reach out if you want to discuss your project! I am not a crowdfunding expert, but I am VERY educated in it at this point. I am also going to be moving forward with my own campaign very soon here in 2017, which you can follow along with by subscribing to the podcast or staying up to date on the blog.

Spend some time understanding the two most popular campaign platforms:

IndieGoGo

Kickstarter

Again, educate yourself further here:

The Crowdfunding Formula

If this is something that interests you, I encourage you to read and absorb as much information as you can on crowdfunding. It is the only way you will fully understand the nuances of what goes into the lengthy, but rewarding process.