Dos and Don't of Crowdfunding on Kickstarter and Indiegogo

Kickstarter & Indiegogo Launch: Dos and Don'ts

Key Concepts: Crowdfunding, Kickstarter, Indiegogo, Pre-launch, Budgeting, Marketing, Community Building, Emotional vs. Logical Decision-Making, Teamwork, Rewards/Perks.

1. Backing Other Campaigns: A Crucial Learning Experience

• Do: Back Kickstarter and Indiegogo campaigns (even for small amounts like $1, $5, or $25).
  • Rationale: Observe communication styles, update strategies, and the overall backer experience. Understand what makes a pitch compelling.
  • Benefit: Provides insights into the crowdfunding process from a backer's perspective, answering many common questions.
• Don't: Over-consume and Procrastinate.
  • Rationale: Avoid getting stuck in a perpetual consumer mindset, constantly buying new products instead of launching your own.
  • Benefit: Overcome the fear of launching by accepting the inherent risks and focusing on execution.

2. Embracing Emotions vs. Logical Decision-Making

• Do: Embrace emotions in your pitch, announcements, social media, and email marketing.
  • Rationale: Authenticity and transparency resonate with backers. Share the story behind your product, including sketches, prototypes, and iterations.
  • Benefit: Storytelling built on emotions is fundamental to effective marketing and brand building.
• Don't: Let emotions dictate business decisions, especially during the campaign.
  • Rationale: Avoid panicking when momentum slows down after a strong start.
  • Example: Creators often panic when initial funding slows down, leading to rash and potentially wasteful marketing decisions.
  • Benefit: Maintain a level-headed approach, remembering that the campaign's success requires sustained effort throughout its duration.

3. Budgeting and Planning: Essential for Success

• Do: Create a detailed budget for product development, marketing, advertising, and expert consultation.
  • Rationale: Lack of budgeting leads to anxiety and rash decisions.
  • Tools: Use Excel, Google Docs, or even a notebook to track expenses.
  • Benefit: Careful planning ensures awareness of financial needs and contributes to a successful outcome.
• Don't: Expect something for nothing.
  • Rationale: Even with a great idea, execution is crucial.
  • Benefit: View crowdfunding as an investment of time, energy, budget, and attention that will yield long-term dividends.

4. Rewards and Perks: Balancing Profit and Value

• Don't: Be skimpy with rewards.
  • Rationale: Avoid offering unappealing rewards solely to maximize profit margins.
  • Example: Offering a generic mug instead of the actual product or a more engaging experience.
  • Benefit: Aim for a win-win situation with interesting perks and good profit margins, but prioritize value for backers.

5. The Pre-Launch Phase: Building Momentum

• Do: Implement a pre-launch strategy to build an audience and generate excitement before the campaign launch.
  • Rationale: A pre-launch warms up potential backers, so they are ready to pledge as soon as the campaign goes live.
  • Benefit: Similar to sneakerheads lining up for a new release, a well-executed pre-launch creates anticipation and drives early pledges.
• Don't: Rely solely on the pre-launch as a "silver bullet."
  • Rationale: Follow-up is crucial.
  • Benefit: Maintain momentum throughout the campaign with consistent marketing, promotion, PR, and influencer outreach.

6. Teamwork and Seeking Guidance

• Do: Assemble a team of knowledgeable individuals to support your campaign.
  • Rationale: Business is a team sport. You can't be good at everything.
  • Benefit: Delegate tasks and focus on leadership, setting goals, and driving the overall strategy.
• Don't: Go it alone.
  • Rationale: Seek education and information through books, podcasts, YouTube videos, and other resources.
  • Benefit: Learn from others' experiences and avoid common pitfalls that can lead to failure.

7. Coaching and Early Intervention

• Benefit: Early coaching can have a profound impact on the success of your campaign, similar to adjusting a golf swing.
• Action: Book a one-on-one coaching call at crowd.com/coaching to build a strong foundation for your launch.

Synthesis/Conclusion:

Launching a successful Kickstarter or Indiegogo campaign requires a multifaceted approach. It involves backing other campaigns to learn the ropes, balancing emotional storytelling with logical decision-making, meticulous budgeting, offering compelling rewards, executing a pre-launch strategy, and building a strong team. Avoiding common pitfalls, such as procrastination, emotional decision-making, and expecting something for nothing, is crucial. Seeking guidance and investing in coaching early in the process can significantly increase the chances of success. The key takeaway is that crowdfunding is an investment that demands careful planning, consistent effort, and a willingness to learn and adapt.