Crowdfunding is a process in which a lot of people pool in small amounts of money to raise a large sum of money. This is raised for a particular cause be it medical, social or economic. Crowdfunding has become particularly popular since the outburst of the cyber revolution. In India too, an increased access to the internet has led many people to raise money online for specific causes. At the same time, the effects of the recession in the west and an increasingly liberalized economy in India has contributed to the growth in crowdfunding. Since more people are looking at this form of raising money, I will discuss some things you should consider before you start crowdfunding.
One of the main tools of your campaign is your fundraiser. Fundraiser in Indiais more about medical and social causes than business. However, business crowdfunding too is catching up. You have to consider whether you have exhausted all your other avenues before you ask others for funds. For example, have you considered loans? Is it a worse option than crowdfunding? You have to justify these things in your fundraiser particularly if it is social or medical. Therefore, the way you write your fundraiser is very important in crowdfunding.
The cause for which you are raising money is something you have to keep in mind. Your cause will determine your target audience. If your cause is a medical cause, your target audience can be much larger and from all classes in society. If you are raising money for say, women who have been abused, your target audience is likely to be a socially conscious one. Keep in mind how many people you can reach and design your campaign accordingly. If your cause is a business cause, you have to figure out who it benefits, i.e. your customer base. Can your customer base be reached through crowdfunding? This is an important question you must consider.
Your target audience must never feel like you are imposing yourself on them. The trick to a good crowdfunding campaign is to make sure that nobody feels imposed upon. If it is a business crowdfunding campaign you have to make people know that they need your product quite subtly. Choose a crowdfunding platform that is good at the kind of crowdfunding you want to do. There are plenty of crowdfunding sites in India, you have to pick the one that suits your campaign best. Before you do anything, you must design your campaign accordingly.
When you design your campaign, you need to factor in your social media reach. Social media is important as it is one of the primary publicity tools at your disposal. When you do have a wider social media reach, campaigning becomes easier. However, you should not bother if you do not have a wide social media reach. You can run a successful crowdfunding campaign without one too. Make sure you have a team who do have a wide social media reach. Before you start crowdfunding, you should form your team. Your team will post updates and campaign on social media. They will help bring in potential customers and bring visibility to your campaign.
Figure out what will be the means of publicizing your campaign. Social media must play its own part. But there are many other parts that should be considered. Would you use email to reach out to potential customers or donors? Who will be the people you will target? Are these old friends? In that case, should you consider a get together to kick off your campaign? These are decisions which need to be taken before you start your campaign.