Crowdfunding a Product: How to Get It Right

Crowdfunding a Product: How to Get It Right

From Veselina Dzhingarova

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One of the ways you can fund the production of a new product is through a crowdfunding campaign. After developing a product that solves a problem faced by potential customers, you can get the funding you need to start production with the help of customers interested in the product idea.

Crowdfunding is a financing option that can be effective for a wide range of products, but it is still necessary to stage a campaign that works. This means targeting the right market segment and getting a few things right.

A Great Product Idea

Take a look at successful crowdfunding campaigns over the years and you will notice similarities between them. One of the most obvious similarities is the fact that crowdfunded products tend to be revolutionary or a true gem in the minds of customers.

To have a successful fundraising campaign, you need to start with a good product idea. You also need to make sure that you have developed the idea into its mature form all the way through testing. You can run surveys using one of those recommended by Survey Cool and get first-hand market insights.

When the idea of a product is fresh and appealing, marketing that idea – and the product itself – isn’t that difficult. At this point, the insights you collect during your product research and surveys will be very useful.

Careful Targeting

The best way to increase the probability of success for your fundraising campaign is by reaching the right target backers. Now that you have a good product idea – or even a working prototype – in mind, you need to start defining the target consumers for that product.

Running a targeted campaign is easier for two reasons. First of all, you know the exact market segment you want to reach, which means you can tailor every part of the campaign for that market segment. You can even fine-tune details such as the words used in copies accordingly.

The second reason return on investment (ROI. A targeted campaign is more cost-efficient to run. Not only will you be able to get the funding you need to start production, but you will also have the ability to boost your ROI by keeping costs at a minimum.

Effective Marketing

The last piece of the puzzle is marketing. You need to expose the campaign and reach the right target audience groups to find the backers you need for your product. Since you now know the target market you want to reach, everything about the marketing campaign can be customized.

When trying to reach a younger audience, for instance, using Instagram as a marketing instrument will generate more relevant exposure than running ads on Twitter. If your product is geared for professionals, advertising on LinkedIn would be the way to go.

The key messages and the marketing contents you use are just as important. Highlight product details that appeal the most to the target consumer and make sure you use visuals – photos and videos – to get your message across.

Get these three elements right and your crowdfunding campaign will be a big hit. With a clever product that offers real benefits, a suitable consumer group as your target market, and a refined marketing campaign, getting the funding you need to start production isn’t a challenge at all.

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