10 Step Guide to Running a Successful Crowdfunding Campaign

Yesterday marked the end of HelpLearn.Asia’s event. One of the topics that got me sitting up was crowdfunding – a relatively new concept in Asia – that Daryl Arnold of Newton Circus (not the hawker centre in Singapore) shed some light on.

Hear ye, all you who are interested in raising capital but are sick of trying to convince the rich people to invest in your idea. Try tapping into the masses instead. Besides raising money, crowdfunding also serves a marketing purpose. It’s another way of getting the word out on your idea and to test your concept.

Here’s a 10 step guide to running a successful crowdfunding campaign, with some insights from Daryl. I’ve included step zero as an introduction:

Step 0: Choose the right platform

The most well-known platform is, arguably, Kickstarter, the mother of all crowdfunding sites. Unfortunately, it’s only open to people in the US or UK. Loring Harkness, project manager of Newton Circus notes that platforms should be chosen based on the project – some platforms focus on creative projects, others on startups, and some on charities. A few of the sites are international, and others local. Newton Circus chose to use Indiegogo to crowdfund for Silverline for three reasons:

• They were launching an ongoing business (sites like Kickstarter and Pozible only fund projects)
• They wanted to reach an international audience
• They wanted to work with a trusted brand (Indiegogo is one of the oldest and largest out there)

Here’s a list of crowdfunding platforms in Asia. Once you’ve chosen your platform, get signed up, and get into gear.

Step 1: Perfect your pitch

With every sales pitch, it’s important to get your unique selling point clearly across. Don’t forget that you’re here to convince people to part with some of their money as well, so let them know how much you need (the end goal) and where that money goes. Offer incentives and rewards that make sense. Package it so that it sells. Better yet, tell your story through a video – who reads long copy these days? Whip out your creative hats. Make it human. Make it emotional. Get these visitors to swallow it, hook, line, and sinker.

Step 2: Find supporters

Supporters come in three broad categories – media, business partners, and friends. Leverage on these to create awareness of your crowdfunding campaign by spreading the link; if they are unable to contribute in monetary terms, convince them to advocate for your project.

Step 3: Prioritize outreach

Prioritize outreach by choosing influencers who are relevant and have a sizeable reach. Work on the current relationships you have. Six degrees of separation makes it easy to reach out to influential people as well. LinkedIn is a great initial resource.