The Kickstarter platform has become essential to finance projects in the field of connected objects. In total, more than 3 billion dollars have been invested on more than 130,000 projects. But these figures should not hide the harsh reality. Simply launching a project is not enough to make it successful. In the technological field, less than 20% of projects get their funding.
So how can you put all the chances on your side? What are the mistakes not to make?
Let’s take stock with our top 8 steps to follow.
If you’re thinking of starting tomorrow, after a few hours or days of preparation, forget about it right away. In order to differentiate yourself, grab your audience and succeed in getting the financing you need, you need to know where you stand. So read as many articles, blogs and newsletters as you can find on Kickstarter campaigns. The sign that you’re reading this one shows that you’re on the right track!
Know your audience
The people interested in your object are on average 80 years old and are in a retirement home? Then Kickstarter is not necessarily the best solution to succeed in obtaining financing. Unless it is their children or grandchildren who do it. But then your approach will be different. As for any company wishing to launch a product on the market, it is essential to know it.
The ideal is to succeed in building your community even before the launch of the participatory financing operation on Kickstarter. Facebook, Twitter, newsletters and dedicated websites are then your best friends. Having a base of supporters even before the launch of the project will give you a serious boost for the launch.
See what others are doing
Again, this is a classic logic in a market. Look at how others do it, how they operate in terms of rewards and community interaction. Link up with other projects that can connect with yours. If you support them, they may return the favor. A tip that applies as much to good projects as it does to bad ones! Don’t hesitate to note the good techniques but also those to be avoided at all costs!
Explain why you are different
If you have observed the other projects and know the market you are entering, then feel free to explain why you are different from the competition. The solution may be to make a small chart, worked out graphically showing your advantages over other products. Also, don’t hesitate to discuss it with your supporters or to talk about it in the Frequently Asked Questions.
Choose your launch date carefully
ou think that the time of the year or even the day of the week you’re going to launch your operation on Kickstarter doesn’t change anything? Think again! One of the best examples of this is the Coolest Cooler, a cooler that raised $13 million in the summer of 2014. First launched in December 2013, it raised “only” $125,000. The public sometimes has a short-term vision, so you have to adapt to the season. Throwing an object on the weekend will also generally have less effect than during the week. People are less present. However, the first few days are the key!
Ensure communication on social networks and elsewhere
Never leave questions unanswered. Answer quickly and well. Whether by email, on the platform or on social networks. It will take time, but it is essential to show that you are serious.
Give rewards that are worth it
Kickstarter is not a store as the site has repeated several times.. They only have your promises and the images you will provide them with. So offer rewards that are worthy of their support. They can be exclusive Kickstarter products or just really great discounts.
Be honest about deadlines
Finally, don’t announce a release in 3 or 4 months, when you are still at the prototype stage. It is essential to have a precise long-term plan on dates in order to be able to keep your promises. This will require careful planning and organization. But the bad buzz otherwise could prove fatal to your future projects!
Points to remember
Crowdfunding is an excellent tool for entrepreneurs who need to quickly raise funds to finance their invention or product. However, it is not for everyone, and reaching your financing goal is anything but guaranteed. Many entrepreneurs fail at this stage.
It’s all about preparation. Optimize the promotional content of your crowdfunding campaign, take professional and attractive photos, create a great video, and start building relationships with niche magazines and blogs so you have the opportunity to get media coverage at your launch.
Sites like Kickstarter can attract a new audience to your e-commerce site that is interested in your product – an audience you might not otherwise have been able to reach. However, don’t count on Kickstarter to drive traffic to your crowdfunding campaign. Your campaign is more likely to succeed if you already have an audience and your brand is already established.
If your product is innovative and aimed at the general public, this is an ideal opportunity to test a crowdfunding campaign that would allow you to finance its manufacture.
Consider the fees charged by the crowdfunding site when setting a fundraising goal. (Kickstarter takes 5% of your total funding and a 3%-5% payment processing fee if your project is successfully funded. There is no fee if your project funding is not successful).
If participatory financing seems appropriate for your activity or product, consider less competitive niche crowdfunding sites.
Successful crowdfunding campaigns
Crowdfunding sites like Kickstarter offer today a unique opportunity for entrepreneurs who have the idea, but not the money. However, the experience and advice of the founders of Walnut Studiolo clearly show that although success is certainly possible, it is not guaranteed.
It would also be interesting to explore crowdfunding sites to find out if a product similar to yours has already been successfully financed and determine whether it is worth investing your efforts in the implementation and promotion of a crowdfunding campaign.
My name is Sue, and I'm a freelance writer that focuses most of my attention on the world of business, finance and partnerships. Through the use of this blog I share my findings and what I'm currently working on.