Recent study of successful crowdfunding campaigns revealed 6 incentives that drive people to back crowdfunding projects.
Narek Vardanyan, author of the strategic guide “57 secrets of Crowdfunding” interviewed 206 successful crowdfunding campaigns and revealed the incentives that drive people to back crowdfunding projects time and time again. Here are the 6 incentives that will make people back your crowdfunding campaign:
1. You’ve Just Solved A Problem
It can be a simple product – revolutionize the humble bottle-opener, devise a nifty changing mat, a jacket that folds into a chair, or a service, a novelty – a cat-lover’s cafe or a barber shop for beards (hipsters ahoy).
And if you’re feeling particularly crafty, or still waiting for a muse to strike, you can always pop on over to alibaba.com. You’d be amazed at how many products selling there appear on Kickstarter, rebranded and repackaged. Don’t backers know they can get the product anywhere else? Of course do, they just get the warm glow of supporting someone and being a part of your start-up success story.
2. Your Idea is Cool
It might be ever so handy in real life, but that isn’t the only thing that drives backers. They want your clever gadget to make it into the real world because it’s a cool idea. Take a look at a recent campaign for a Greek Bailout. It’s cool; it’s fun, and it’s attracted about $1.3m in support from over 60 countries.
3. You’re Kind of Likable
This Golden Rule is as applicable to venture capitalists as crowdfunding success stories. People fund People; not ideas, projects, or services. If they don’t like you, if they don’t have confidence in you, then they’ll never part with their cash – even if you create a holographic phone or the coolest jacket that transforms into a chair that transforms into bed (I may be focusing a little too much on this chair idea). If you’re not likable, you’re not fundable. So, use all your charm and charisma, make people like you!
4. You’ve Nailed Social Benefits
You are feeding the undernourished, helping the poor or fixing earthquake damage. You are providing a community with social benefits, and igniting the interest of backers while you’re about it. People want to invest in good causes that make a difference.
5. You’re a Story Worth Being Part Of
So this is where friends and family come in, but they’re not the only ones with a part to play. Make your campaign personal and you’ll be inundated by strangers willing to help, to play a part in your success story.
6. There’s Something in it for Backers
You wanted people to help you for free? It doesn’t work like that. People (even kind ones) want something tangible for their money.
Provide some great perks at great prices, make sure they can’t get them anywhere else, and watch the backers roll in.
Eric Reyes, the author of “Lean Startup,” has this point nailed. He introduced his new book exclusively on Kickstarter, mentioned that the book would not be sold anywhere else and created a limit market with all the attendant frenzy and excitement. The outcome? A cool $600,000 pledge total.
But we’re not all well-known authors. Most crowdfunders make discount quotas instead. They’ll offer the first 100 backers a 50% discount, the next 100 backers 30%, the next 15% discount. They incentivize their backers to buy the ‘discounted product’ and reach their funding goal quickly.
More about how to make your campaign successfully funded you will find here.