Why Crowdfund?

WhyAfter having designed and managed a number of campaigns and now presenting publicly and conducting workshops, I’ve discovered that the first question that should be asked is actually rarely asked. “Why crowdfund?” is a loaded question and core to all campaigns. The mistake? To jump immediately to money.

Sure, money is important, but so are a number of other goals. If you’ve watched my presentation video, you’ve heard about several crowdfunding strategies:

  1. Market testing – Pebble Watch tested colors and add-on products.

  2. Market proof – Ubuntu Edge utilized crowdfunding solely to prove the market to the OEMs they actually were targeting.

  3. Price testing – By utilizing different product bundles at various price points, you can test the market’s interest and value perception.

  4. And I would add:

  5. Collaboration development

I regularly advise my clients to develop collaborations with other complementary organizations before crowdfunding. Bundling products, services, not to mention sharing marketing databases for social media, emails and other traffic generating techniques can be powerful on a crowdfunding campaign. The best part is, that when properly designed, everyone wins!

A paradigm shift is occurring in competition. Why not, instead of waging war, make your biggest competitor your ally? What better way to do it than making money together?

So sit a while before planning a crowdfunding campaign, and use whatever brainstorming methods work best for you to determine a unique position for your crowdfunding campaign that sets you apart while accomplishing your top goals… other than money.

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