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6 Tips for Entrepreneurs Interested in Crowdfunding

Before you create your crowdfunding page, decide where you want to focus your efforts and what rewards you want to extend.

Question: What is your best advice for entrepreneurs looking to crowdfund?

Set Your Goal Low

"A key factor in crowdfunding algorithms is a metric called percent-to-goal. Most crowdfunding sites want you to have 40-50 percent or more of your funds raised within the first 24-48 hours. Keep in mind crowdfunding sites don't get paid unless you hit your goal, so they want to feature campaigns that are funding quickly. You're likely to get more views by having bigger percent-to-funded ratio."


Put Effort Into Each Reward

"You are asking your backers to take a risk on you. Think about awarding your donors and what is in for them. Create a set of truly compelling rewards that tie into your story. What is unique that you could offer?"


Narrow Your Focus

"Don’t overpromise. Single in on one very clear message or concept with a clear understanding of what the money will be used for and why it’s needed. Additionally, understand the legal differences between donation and equity crowdfunding. It’s now possible for you to sell equity to the general public, but you need to be aware of the legal restrictions that come with that."


Make It Fun

"Crowdfunding is a commonly accepted part of our current landscape. People are often willing to give even if it's just a little. Set an easily attainable goal and give out fun prizes at various levels: stickers, exclusive merchandise or content, or even a special meet and greet for top donors. People like the idea of doing something good, so make sure to clearly define how their donation helps you."


Spend Time on the Design

"It's worth putting the extra time, effort and money in making sure your campaign tells an aesthetically visual story. Backers need to be convinced that you and your project is worth the contribution, so make sure design is part of your overall campaign messaging and strategy."


6 Tips for Entrepreneurs Interested in Crowdfunding

Before you create your crowdfunding page, decide where you want to focus your efforts and what rewards you want to extend.

Question: What is your best advice for entrepreneurs looking to crowdfund?

Set Your Goal Low

"A key factor in crowdfunding algorithms is a metric called percent-to-goal. Most crowdfunding sites want you to have 40-50 percent or more of your funds raised within the first 24-48 hours. Keep in mind crowdfunding sites don't get paid unless you hit your goal, so they want to feature campaigns that are funding quickly. You're likely to get more views by having bigger percent-to-funded ratio."


Put Effort Into Each Reward

"You are asking your backers to take a risk on you. Think about awarding your donors and what is in for them. Create a set of truly compelling rewards that tie into your story. What is unique that you could offer?"


Narrow Your Focus

"Don’t overpromise. Single in on one very clear message or concept with a clear understanding of what the money will be used for and why it’s needed. Additionally, understand the legal differences between donation and equity crowdfunding. It’s now possible for you to sell equity to the general public, but you need to be aware of the legal restrictions that come with that."


Make It Fun

"Crowdfunding is a commonly accepted part of our current landscape. People are often willing to give even if it's just a little. Set an easily attainable goal and give out fun prizes at various levels: stickers, exclusive merchandise or content, or even a special meet and greet for top donors. People like the idea of doing something good, so make sure to clearly define how their donation helps you."


Spend Time on the Design

"It's worth putting the extra time, effort and money in making sure your campaign tells an aesthetically visual story. Backers need to be convinced that you and your project is worth the contribution, so make sure design is part of your overall campaign messaging and strategy."


See Also: 14 Books on Every Ambitious Entrepreneur's Reading List

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