What is Crowdfunding?
The idea behind crowdfunding is simple. You introduce your project to a large audience via the internet. Those who like the project that you’re planning can offer financial support. At first, this could look like virtual begging. It isn’t, as every supporter receives a special reward for their contribution. This is commonly called a perk. It comes in all sorts of forms, ranging from signed CDs to a house show, or even set up your tour. Anything is possible! The great thing about crowdfunding is that it puts you in direct contact with your fans. You can offer them unique and personalised perks, funding your project at the same time. No wonder the concept is so popular.
5 tricks to optimise your crowdfunding project
Interested? Want to be the next top crowdfunder? If so, take a look at the 5 tips below, which will help you the get the most out of your crowdfunding project:
1. Present your project as well as possible
Prepare the presentation of your project thoroughly, to show people that you mean business. Set out your entire plan, including the individual cost of each item. Transparency is crucial. Make a little video introducing yourself and your project. Campaigns with videos are on average twice as succesful as those without.
2. Keep people updated
Show the course of your progress. You can only prove that your project is still alive and developing if your website is reguarly updated. Post blog entries, pictures, and other materials in order to keep your supporters well informed. According to Indiegogo, one of the leading crowdfunding platforms, supporters are often happy to donate twice for projects that are constantly updated.
3. Use different kinds of perks
One advantage of crowdfunding is that you can discover how much your fans are willing to pay by offering varied perks. One fan might want a CD for €10, while another might consider paying €400 for a house show. Tip: the most popular perks come in the region of €20. Be sure to always have something around this price on offer.
4. Build fan engagement
Include your fans in your creative process! For example, let people vote between three different future album covers. You create a special connection between you and your fans in this way, simultaneously boosting your ‘word of mouth’ publicity. Someone who likes your music and can identify with it will tell their friends, thereby automatically promoting you. What would you trust more? An advertising billboard, or the recommendation of a friend?
5. Your network
In the early stages you should draw directly upon your existing network of friends, family and colleagues. They can help you get your project off to a good start. Potential contributors will be more likely to support your project if they see that you already have supporters, and people who believe in you. You should also use your Facebook profile, mailing lists and twitter accounts to promote your project. Tell the local press about it, and mention it on stage. Let people know that you and your project exist!