Crowdfunding is helping to transform equity investment in the UK, but when it comes to financing your next big idea, success comes from the marketing legwork you put in.
In other words, simply posting what you think is a compelling video and waiting for the pledges to come in will not be enough.
What successful crowdfunding marketing requires is a strategy, and the cornerstone of this strategy is knowing who your audience is.
Who is Your Crowd?
As with other marketing activity, crowdfunding depends on you having a clear understanding of who it is you are talking to. Also, as a form of digital marketing, it has its own rules and ways of doing things.
For a start, you cannot simply focus on selling the benefits of your product with the expectation that this will draw sufficient pledges of funding support.
It is more complex than that. You must work out how to attract and build your audience.
Remember, you are asking your target audience to invest in you, not simply buy from you or subscribe to your services, therefore, the first step is to do your research
Familiarity is the key to success. You must understand what sort of people make up your target audience. What are their interests, issues and pain points? The more you can narrow down this audience, the more targeted your marketing can be.
Within this audience there should be influencers, people who already care about what you are doing and are willing to share this with others.
When you start to build your online audience keep an eye on analytics and work out who in your network of followers is most active in terms of sharing content or who already themselves has a substantial number of followers.
Nurture relationships early on with these potential influencers.
The Social Aspect
At the core of crowdfunding it its social aspect. When you market in this way, you are creating a community.
To appeal to this community, and to get it to work in marketing your concept, you must hone your social media skills. This involves knowing when to post content to reach your audience, and what kind of content will best appeal to them.
You want to motivate people to like and share your content to help build your audience and, consequently, your investment potential.
There are plenty of social media metrics to help you analyse the impact of your campaign, so that you can keep reshaping and refining your messages and content.
What Do Your Investors Want to Know?
Equity crowdfunding investors need to know about you, and about the reasons for your strategy for getting your product or service to market. It is all about visibility.
Investors will see your social media activity and will measure it against the scope of your enterprise and the size of funding you require, therefore, consistency in your crowdfunding marketing is crucial
Your potential backers will be discerning, with an eye for detail.
Understand them, understand your audience, and you have the right kind of foundations for crowdfunding success.