Everything You Need to Know About Crowdfunding Marketing

Crowdfunding is a great way to raise money for your small business. But not all crowdfunding campaigns meet their funding goals. Only a few successful crowdfunding campaigns, which make the best use of crowdfunding marketing, raise capital as intended.

If you’re looking to raise money through crowdfunding, this crowdfunding marketing guide can help you reach your funding goal. Let’s dive in.

What is crowdfunding?

Crowdfunding, as the term suggests, is a way of raising money from the crowd. In this process, a large number of people contribute small funds to a business cause.

Investors, depending on the type of crowdfunding, will either make smaller contributions to charity or receive equity or other rewards based on their contributions.

What are the four types of crowdfunding?

Here are the four types of crowdfunding to raise capital:

1. Rewards-based crowdfunding

In this type of crowdfunding campaign, a company offers rewards such as early access to its product/service to investors in exchange for their contributions.

2. Equity-based crowdfunding

In this small business financing option, investors receive a small amount of equity in the small business in exchange for their fixed financing.

3. Crowdfunding based on debt

Debt-based crowdfunding involves companies paying back funding money to investors over a predetermined time. Investors may or may not receive interest on their contributions, depending on the terms and conditions of the campaign.

4. Crowdfunding based on donations

In this type of crowdfunding, investors give a small amount of money to a business cause without expecting anything in return.

What is crowdfunding marketing?

Crowdfunding marketing is a marketing strategy that businesses use before, during, and after crowdfunding campaigns to be successful. Well-thought-out crowdfunding marketing campaigns can help small businesses reach more potential investors for monetary support and achieve crowdfunding goals.

Why Use a Crowdfunding Marketing Strategy?

Here are the key reasons why you should use a crowdfunding marketing strategy:

  • When you promote your campaign, you reach a large group of people, increasing your company’s chances of funding
  • A powerful marketing campaign can help you build relationships with your audience
  • Creating and running a crowdfunding marketing campaign gives you opportunities to engage with your community, which can build trust and confidence.

Additionally, crowdfunding marketing campaigns leverage social media, email marketing, and other marketing avenues to maximize the success of your crowdfunding.

Strategies for successful crowdfunding campaigns

The following are proven strategies to make your crowdfunding project successful:

1. Build an audience for your crowdfunding marketing campaign

The success of your crowdfunding campaign largely depends on the size of your audience that believes in your company. Therefore, you should start building an audience for your crowdfunding marketing campaign in the pre-launch stage.

Create a buyer persona for your ideal audience and start finding those people. Social media can be a good place to start. Being active in relevant groups on Facebook, LinkedIn and Reddit can help you find the right people who believe in your crowdfunding project.

2. Build a timeline for your crowdfunding promotion

Your crowdfunding promotion works best when you create a timeline for your campaign, because a timeline will keep your team members on track.

A typical timeline for crowdfunding marketing includes building your audience, testing your launch, launching your marketing campaign, and post-campaign updates.

3. Design a landing page on the crowdfunding platform

A landing page plays a crucial role in crowdfunding marketing. A landing page can help you build a large email list in the pre-launch stage.

Make sure your landing page has the following elements:

  • Loud and clear call to action
  • Visual content to keep the target audience engaged
  • Clear, concise and persuasive copy
  • Responsive design

You should also include shareable social media links on your landing page so that your audience can easily share your campaign on social media platforms.

4. Create content and messaging for your audience

Content is king in all forms of marketing. To create engaging content that delights your audience. A good story has the power to move people. So make sure you use storytelling in your content.

Some effective content types for your crowdfunding marketing campaign include, but are not limited to:

  • Blog posts on your website
  • Guest posts on relevant websites
  • Social media videos
  • Webinars and podcasts

Instead of focusing on yourself, focus on how the crowdfunding campaign can benefit your audience.

5. Promote your crowdfunding campaign through social media channels

Social media is a powerful platform to promote your crowdfunding campaign to a large audience.

Here’s a step-by-step process for promoting your campaign page on social media:

  • Choose the right channel (Facebook, Twitter, Instagram, LinkedIn, etc.) where your audience hangs out
  • Choose the right hashtag for your campaign
  • Plan a social media content strategy (including informative, engaging and persuasive posts)
  • Track results and modify your strategy to improve results

Engaging relevant influencers can catapult the reach of your campaign. Therefore, you should consider including influencers in your social media promotion.

6. Gamify your campaign to raise awareness

Applying gamification tools to your campaign can increase your community’s engagement, thereby increasing awareness of your crowdfunding project.

Here are some popular tools you can use in your campaign:

  • Fundraising progress bar
  • Leaderboard for top investors
  • Badges and trophies
  • Prizes and incentives (tangible items or virtual passes)

7. Use email marketing strategies

Email marketing is one of the cheapest marketing strategies to promote your fundraising campaign. In the pre-launch stage, you can experiment with your email campaigns to see what works best when you collect emails from your audience.

Here are some tips that can help you succeed in email marketing:

  • Write smart copy to appeal to human interest
  • Include social sharing links in your emails to let your audience share your campaign
  • Harness the power of animated video and visual content
  • Use a powerful CTA in your emails

You should also use email marketing tools to run a campaign. Analyze the results to make the necessary changes for better results.

8. Provide product demos to promote usability

Offering product demos can encourage more people to fund your business. This is because product demos allow your community to experience how good your product is. So include product demos in your crowdfunding marketing campaign.

If users allow it, you can create videos of them with your product and share them on social networks. By doing this, you can encourage more people to invest in your crowdfunding campaign.

9. Attend events to increase your audience base

To run a successful crowdfunding campaign, you should start attending events relevant to your industries to increase your audience base. Research the web to find relevant online and offline events where your potential investors are likely to be present. And find out ways to get involved in these events.

Podcast interviews, video interviews, and online conferences are some of the popular events you can explore to increase your audience base.

How much do crowdfunding agencies charge?

The crowdfunding fee structure varies from site to site. Crowdfunding agencies typically charge 5-10% of all funds raised. Depending on the crowdfunding platforms, you may also have to pay due diligence fees, payment fees or other charges.


Image: Envato Elements

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