A successful crowd funding campaign can generate a lot of buzz, validate your concept, and raise you the much needed funds to grow your business. New crowdfunding sites are popping up more and more these days, especially since the recent bill was passed allowing common individuals like you and I to invest in projects we believe in.  In the past, only an accredited investor that had $1,000,000 or more in assets and or earn more than 200,000 a year were able to fund investments.

As crowdfunding continues to develop and new platforms sprout about, it will be wise to stay up on current news and developments that could affect how you w structure your campaign. When planning your crowdfunding campaign, do some research of which crowdfunding site is right for you.

To get you started, here is our list of the 5 best crowdfunding sites; each offering a slight different approach and/or focus to crowdfunding. For more on starting and planning your crowdfunding campaign, check out our article on Starting Your Business With Crowdfunding.

1. Kickstarter
Kickstarter is used to fund creative projects. The site is designed for artists, designers, and inventors to use as a platform to finance new emerging products.  The site launched in 2009, and has seen more than 20,000 creative projects successfully funded.  Kickstarter structures its campaigns on a all-or-nothing basis; which means if your targeted goal isn’t reached the deadline, your project doesn’t get any funding and your investors won’t be charged. You weep and go back to the drawing board.

2. RocketHub

Rockethub is geared to funding artists, scientists, entrepreneurs, and philanthropists. Rockethub was launched in January 2010 and puts forth an “all & more “funding model.  The “all” means you get to keep all the funds raised through out your campaign.  The “more” means you’re able to set additional perks if your project goal is reached or is exceeded.

3. AngelList

Founded in 2010, Angellist focuses on connecting early stage startups to high profile investors. The hybrid social network, communication and crowdsourcing platform is comprised of community of startups and investors and is designed to facilitate introductions between the two.  An important difference to take note of Angellist is their focus on building a network of reputable investors and serious startups.

4. Indiegogo

Indiegogo has been around, having been founded in 2008. They are unique in that they allow projects of almost any kind, just as long as they aren’t illegal.  Much like Google, the “global exposure” feature promotes campaigns based on a unique, merit- based algorithm that tracks the level of activity for each campaign based on how much is shared, updated.

5. InvestedIn

Similar to Indiegogo, Investedin is a platform for inviduals to raise money for a wide range of projects.  Investedin heavily relies on social media to leverage support and reach fundraising goals. InvestedIn is built to scale, offers hosting, and is fully customizable; which means you control the look, feel, and branding of your campaign.

Crowdfunding is an alternative, low cost way to build awareness for you product while aggregating the needed funds to take your project to the next level. Accompanying your crowdfunding campaign, should be a well put together video that explains your product, service, or company objective.  Creating an engaging video for the intent of going viral is an effective way to show your product while putting a face to your brand.  For more on viral marketing video campaigns,  check out our article on viral marketing campaigns. 

Need to get over that financing hurdle? Facebook, Twitter, and just about everything online, is re-shaping the way we interact with each other – Now crowdfunding presents an exciting new platform for aspiring artists, philanthropists, and start-ups to finance their projects.  The ever-growing social media landscape is the driving force behind crowdfunding’s ability to generate finances to start and grow your business. Micro-lending and peer-to-peer lending were the earliest examples of “social financing”.

What is Crowdfunding?

Crowd funding is a platform which allows regular people to display their ideas by using the power of social media and video outlets such as Youtube to pitch their projects to a large pool of micro-investors.  Where a substantial investor would have been needed in the past, crowd funding makes it possible for individuals to leverage the masses to reach their investment goals. Whether you garner enough support or not, depends on your approach.

The real power of crowdfunding lies in the ability to expose large groups of investors to to new creative projects, ventures and/or business opportunities. Writers, independent film makers and entrepreneurs looking for seed money can take advantage of crowdfunding to get their business off the ground and/or to revive an existing business. Crowdfunding is also becoming an effective way to finance non-profit enterprises.

CAMPAIGN TIPS:

Tip 1: Understand Your Options

Check out as many sites as possible to find one best suited for your project. As listed below, certain sites are geared towards a particular niche or type of campaign. Would you like to raise as much money as possible by a certain date? Or would it be an all or nothing campaign; meaning your investors wouldn’t be charged if the entire campaign goal wasn’t met? Check your options out and decide what is best. Here are some good examples:

Kickstarter – Crowdfunding for creative projects

Crowdtilt – Crowdfunding for ANYTHING

Angellist – A funding site for angel investors

Indiegogo – Similar to Kickstarter, for creative projects

Appbackr – Crowdfunding for apps

Tip 2: Create a Campaign That Attracts Press

Whether it’s your product or an engaging video that goes viral, get creative and outline ways you can attract some press. Once you’ve outlined your campaign, leverage the power of social media to garner support for your project.  See our post on “Going Viral”

Tip 3: Engage With the Community

Be sure to provide regular updates, answer any questions, and ask questions. Engaging and showing progress will ensure them that they made the right choice by supporting your cause and may prompt them to give positive “word of mouth”.marketing.

Tip 4: Promote Like No Tomorrow

People like stories; so tell a great one. Media outlets are hungry for news and your press release can add more fans and drive people to your campaign site. Tweet about it, write blog posts about it and add a signature line to all your emails with a link to your project. This not only gets you seen by people, but also builds back-links for search engine results.

Tip 5: Don’t ask for charity; What’s in it for them?

Realize the difference between a well thought-out; and engaging campaign vs just flat out asking for help. Although people could probably sympathize with your struggling  band, remember to offer enticing rewards for investing their hard-earned money.  Get creative with your gifts and offers; make your potential investors feel like they’re supporting a movement, rather than just forking over money.

In addition to aggregating funds to financing your project and ideas, your able to engage directly with your target market, tweek your strategies, and learn from your mistakes. Kickstarter was reported to have collected over $40million and funding over 20,000 projects just 2 years after launching in April of 2009.

 See more business advice for ‘Start Up Fundamentals’

Viral marketing is  presenting an idea that quickly grabs the viewers attention; and sparking a common interest among a large community of people in a virus like manner, hence the term “viral”.  Social media enables this phenomenon we call “going viral”, by creating the ease of “likes”, “shares”, and re-tweeting, making it vastly quick & easy to share information across globe. Whether your supporting a cause or creating awareness for your brand, its important to keep your message engaging, informative, and entertaining. The power of film is commonly utilized by such video sharing sites such as YouTube, in order to deliver powerful messages and influence audiences to share those messages with their entire social network.

So how can businesses take advantage of this viral phenomenon? An example of a video gone viral is IKEA’s: Herding Cats Video.

Click here to view the embedded video.

Since its upload in September 2010, the video has garnered well over 3 million hits.  Yes, the production took 5 film crews and probably more resources then the average small-medium sized business have to spare; but with a little imagination- one could accomplish a similar effect using little resources. Other than video marketing, other viral marketing strategies exist which are propelled by social media to maximize sharing capabilities.

Other viral marketing types include:

REFERRAL CONTESTS

Referral contests are perhaps a little ‘old-school’, but they are still extremely effective. People are often much more inclined to refer another person to a site/ business if there is ‘something in it’ for them. Such a contest may, for example, promise a smaller prize for a minimum amount of referrals and a higher price for the highest number of referrals within a specific time period.

REFERRAL PROGRAMS BASED ON TARGETS

A referral program based on preset targets, on the other hand, would promise consumers a regular, perhaps monthly reward when the required number of referrals is reached. Some companies use sure-win referral schemes, where consumers are offered a set payment for every referral they make. A business may, for instance, offer customers a payment of a few cents for every e-mail referring an acquaintance they send out, regardless of whether the referred individual ultimately makes a purchase or not.

FREE SERVICES AND APPLICATIONS

Offering free use of specific services or applications is another one of the great viral marketing ideas. Consumers love to be able to use free services and are highly likely to pass on the knowledge of where a useful free application can be found. This idea effectively assists a company in establishing their branding, as visitors coming to check out the free application are taking note of and further sharing the site on which they have found it. Google’s many free to use applications are a good example of this.

A CAUSE OR NON-PROFIT

A marketing campaign built on a worthwhile cause triggers the ethics in all of us.  As individuals we all have a need to be part of something bigger than ourselves.  A great example of supporting a cause and creating a video that engages the masses, is the viral phenomenon known as KONY 2012.  Although since its viral explosion, there has been a number of undermining distractions, their is no doubt of its profound effectiveness to have initiated a mass global movement.

Click here to view the embedded video.

As with any great marketing campaign, viral marketing projects have to be well researched. When planning your campaign, one should investigate a target population’s demographics and create a highly tailored marketing campaign that engages and inspires your audience to share with their community.

Interested in more viral? Check out Stussy’s “Strip for Likes” Viral Facebook Campaign.

There’s an old saying: “nothing is free”; and in the case of Stussy’s latest Facebook campaign, the contemporary clothing line is taking that meaning to whole new level.  The Stussy Amsterdam  page are enticing fans to “like” their page; and what they’re offering in return is quite risque.

In an effort to debut the Men’s 2012 Summer/Spring line, Stussy-Amsterdam’s latest Facebook campaign is showcasing a model wearing layers upon layers of clothing; and vows to strip for every ”like” the Dutch Stussy page receives. The strategy is fairly simple and straightforward; and is causing a bit of a stir.

Click here to view the embedded video.

Smart? Or just plain trashy?  We’ll let you be the judge by voting at the bottom of the page. Since its launch in early April, the campaign has gotten both positive and negative feedback:

” Stussy is finally using the Facebook feature in an original way, says Amsterdam Ad Blog. Better yet, it hooks consumers. After liking the stripper once, users will come back multiple times to check on her stage of undress. In doing so, they’ll see a multitude of Stussy clothes”.

While opposing opinions like Patricia Robles at Econsultancy, questions the brand positioning of Stussy-Amsterdam’s campaign. Given that Stussy carries both men’s and women’s apparel, some suggest it would have been wiser to have launched this particular campaign with a male and female model together.

Whether your for or against the campaign, Stussy’s Dutch Facebook has succeeded in respect of garnering attention; and has since gone viral.

PLANNING YOUR CAMPAIGN

This doesn’t mean you have to necessarily strip down to your undies; but here are some initial steps to take when planning your own marketing campaign.

Like any campaign, you start with outlining as much information as possible.  Look to cover all your bases and take into account answering the 5 W’s & H method (who, what, where, when, and why).  Here’s a start:

STEP 1)   Understand Your Market 

Know who your target market are and go where they go.

“As a contemporary brand you need to be wherever your fans live, shop or play.  Facebook plays an integral part of their lives, Stussy AMS’ Facebook is therefore an important platform to engage with fans, inform them or just share the fun”, said Sean Thompson/ Head of Creativity, Arnold Amsterdam.

STEP 2) Determine Your Objectives

Are you looking to create a buzz and go viral? Or to complete some other marketing objective?   An effective marketing campaign often contain a collage of activities working together for a common goal.

STEP 3)   What’s Your Channel?

Outline all the available marketing channels that fall into your budget; such as Facebook, Twitter, LinkedIn, Press release, influential bloggers. Its important to know where your customers are.

STEP 4) Whats All the Buzz About?

Your campaign should be bold, unique, and most importantly engaging.  How could you engage with your market?

As consumers we are:

• Visual – Seeing is believing; and depending on what feelings you are trying to convey, a picture can bring it all together.
• We look for patterns – As patterns are reassuring, because we have a level of control.
• We like beginnings and ends – This can be exemplified by deadlines or “limited time”.  Giving a time frame gives consumers a sense of urgency; and as we condition ourselves to prioritize, your conditioning your consumers to do the same.
• We respond to emotion – This usually can be related to your “story”.  How much are your viewers relating to your story or what emotions is your story creating?
• We like stories – As kids, we are often read to.  And as adults we still love a good story, cause, or purpose. How engaging your story or cause will dictate whether your able to entice your audience to take action.

When you have these steps thoroughly mapped out – You are ready to take action!

Looking to grow your business while on a budget? Check out our post on 9 Cost Effective Tips to Alternative Marketing.