Starting the product development journey can be difficult, especially for startups with little to no budget behind their ideas. This is why crowdfunding is such a popular option to gather funds that will support the development of product ideas into prototypes and prototypes into launched finished products on the market.
What is crowdfunding?
Crowdfunding is where small amounts of money are raised by a large number of people to support a project within a timeframe. There are online platforms dedicated to crowdfunding such as Kick Starter. A popular crowdfunding platform that we have supported many of our clients with, explore our work here.
In this platform, we’ll explore how startups can get started with crowdfunding, using Kick Starter as a prime example.
Tell Your Story
The foundation of a good Kick Starter campaign is telling a compelling story. In your story, you should explain who you are as a startup, your proposition, and your core values. Share your product idea as well as the pain points and problems that it will solve. You have to make sure the story you tell brings value to your audience.
Any story should be complemented by engaging visuals such as photos and videos. This will attract potential backers to your campaign.
Realistic Goals & Attractive Rewards
Kick Starter requires you to reach or exceed your goals in order to get the funds that have been pledged. This is why you need to work out the minimum amount of funding needed in order to bring your product idea to life.
An enticing way to get more people to opt into your vision is to offer appealing rewards for their commitment and money. Splitting rewards up based on numerical brackets for the amount pledged is a good way to give back. Rewards could include:
-- Early access to the product
-- Exclusive discounts once the product launches
-- A chance to become a part of the product development journey
Be Transparent About Budgets
If someone is pledging money towards your new product, they will likely want to know where exactly it is going rather than just a general incentive towards producing it. Providing detailed breakdowns of costs associated with your product development will show transparency and commitment to making sure this product is a success. This is also a great trust indicator for people reviewing your projects and who may be unsure of whether to back it or not.
Produce an MVP
A minimum viable product or prototype is a great way to showcase your development on Kick Starter. It shows backers that you are serious about this product you are raising funds for and are capable of delivering what you are promising in your story. This is a representation of your product, allowing people to clearly visualise its functionality and see it as reality over a render.
Social Media & Networking
Leverage social media platforms to get the word out there regarding your new product, it is a great way to spread the word. Reaching out to professionals, friends & family to share your Kick Starter is a surefire way to increase awareness quickly.
You should always consider using social media as a primary channel in your launch and pre-launch campaigns. Creating carefully crafted written content with supported stunning visuals will attract the attention of your target audience.
Create a community
The most important aspect of a Kick Starter campaign or any crowdfunding campaign is to remember that the people backing your project are human too, they require engagement and updates to make their investment worthwhile. Build a community with your backers, providing them with updates on the product development journey, chances to give their opinions and feedback as well as making sure if you do have rewards, they get them on time.
To Summarise
Crowdfunding platforms give startups the opportunity to turn their product ideas into a reality through a live fundraising campaign. Kick Starter, being one of the most popular crowdfunding platforms, is used by many worldwide, and not only is it used by startups, but it’s also used by existing businesses to try to expand their product lines.
If you need help launching your Kick Starter campaign, we can provide you with expert product development services that include roadmapping, sketching, rendering, product ideation and research as well as prototyping and supplier liaison. Get in touch with our team today.
