Today, crowdfunding has become one of the best ways of generating money. Different crowdfunding platforms, like a reward- or equity-based have become powerful instruments of generating revenue. And, with the different crowdfunding models available nowadays, most people find themselves at crossroads when determining how to get money with crowdfunding.
In this post, we shall give you a guide on how to make money through crowdfunding in 2021. So, are you ready to learn how to make money through crowdfunding in 2021? Read on for more information.
Have a clear plan of action
One mistake most people do is launching their campaigns without having a plan. However, it’s advisable that you take your time, and create a solid plan to raise money. The more time you take before launching your campaigns, the less time you will have in solving the challenges that arise in the course of your campaign.
With a good plan in place, you will know what to do to keep your crowdfunding campaign running until you achieve your objective. Besides, you might need someone to lead your campaign, depending on your situation.
Please note that crowdfunding campaigns require energy and time to drive awareness and attract donors. So, you might need to dedicate most of your resources to your campaign. Besides, having a family member or close friend manage your campaign means you will have someone committed to your course, instead of trying to manage a campaign and crisis at the same time.
After choosing your campaign manager, you need to create a plan of action, which should:
- Help you determine your crowdfunding objectives, and set realistic goal and deadline
- Gather all the needed resources for your crowdfunding campaign
- Create a list of prospective donors, and ways to reach out to them
Create an easy-to-find crowdfunding page
The secret to an effective crowdfunding campaign is a fundraising page. Professionals from Stokr, a security token offering platform say that your donors will learn about your campaign and donate via your crowdfunding campaign. Therefore, you need to create an easy-to-find page, if you want more donors to find your campaign.
Here are a few elements to focus on when creating your crowdfunding page:
- Campaign title – strive to create a campaign title that attracts the attention of your donors, and communicates the purpose of your crowdfunding campaign. The title should be simple and clear.
- Visuals – photos and images can encourage people to give, and also make your page look legitimate and professional.
- Description – your campaign’s description and length can help to increase the visibility of your page on search engines.
The secret is, create an easy-to-find page, which keeps your donors engaged, and persuades them to get more details about your crowdfunding campaign.
Make it easy for your donors to make decisions faster
Mostly, your crowdfunding page will be the platform where you accept donations. Therefore, ensure that the donation process is convenient and encourages your donors to give. If you decide to create a copy, use clear and direct language, and be specific with the actions you want your donors to take.
If you are looking for donors, you shouldn’t be afraid of asking them to give a specific amount. While this might look insignificant, it will save your donors time because they will not have to guess the amount you need them to give.
Besides, make it easier for donors to understand your case. For example, if you fail to answer a donor’s question, or a donor doesn’t understand the purpose of your campaign after visiting your page, such things can make a donor hold back from donating.
Therefore, you should clarify the following in your campaign description and updates:
- How you intend to use the money
- The impact of your donor’s contributions to the beneficiaries
- The progress of your campaign
Use both traditional and online methods to market your campaign
If you want to achieve your goal quickly, you will need to deplete every method when reaching out to donors. Therefore, you should use both traditional and online methods to ask for donations.
Here are two ways you can use to reach out to donors:
This is one of the most common and easiest ways to share your crowdfunding campaigns. The good thing with social media is that you can easily reach out to your friends, as well as new donors. Besides, it’s very easy for donors to find your campaign via social media.
Here are a few ways to boost your reach:
- Use hashtags to increase the chances of prospective donors finding your campaign
- Use short and concise messages
- Don’t forget to link to your campaign
- Add images, videos, and other visuals to attract the attention of your readers.
Local media outlets
Now if you want to raise awareness of your campaign, you can reach out to your local media platforms to see if they can cover your campaign. Providing them with the details of your cause, and its importance can be a plus to this initiative. With this, you can reach prospective donors on these channels, and even make your community get involved in supporting the campaign.
Appreciate your donors regularly
Lastly, always acknowledge and thank your donors immediately they donate towards your cause. Don’t want until the end of your campaign to do this. Rather, you should thank your donors within 48 hours after they contribute. Appreciating your donors can help to boost your fundraising process because donors will know that you appreciate their support and that you acknowledge the person who has donated. When you make your donors feel acknowledged, they will be more willing to support your campaign.