I was asked to provide some tips for crowdfunding based on my experience with Biochemies. Crowdfunding has evolved significantly since I ran mine 3 years ago, but some of the basics are the same.
1) Crowdfunding is a lot of work! Most people imagine it as a simple way to get some money for a project, but in fact, a successful campaign takes a lot of time, effort and effective communication. Plan to spend about 2-3 months working on the campaign itself (especially the video), 1-2 months of continuous emails with backers and press, and then months of actually fulfilling your project. Mine took 6 full months of evenings and weekends.
2) Marketing, marketing, marketing. Previous to my campaign, I didn’t realize the true power of marketing, and especially the lack of marketing. Just having a campaign on a popular platform does not guarantee any eyes to your page. You have to find your own visitors. Start with your own social networks and once you get some traction (about 30%) then start hitting relevant press. Don’t just aim for the big press, aim for the smaller blogs that may serve your niche better. In the end of the day, you don’t just want press, you want people contributing to your campaign.
3) If you are doing a hardware project, make sure you have a working prototype and all your manufacturing lined up before you start your campaign. There have been huge problems with hardware projects due to false advertising, inability to manufacture product, and unforeseen manufacturing difficulties. Myself and many other campaigns ran into manufacturing problems overseas with over 80% error rates. Perfect prototypes do not look the same when they hit manufacturing scale. Enforce a strict quality control process with your manufacturers (I found video tutorials to be useful). If possible, manufacture locally for the crowdfunding batch before scaling up overseas or go to your manufacturing location to directly oversee production. Get a good estimate of production costs, licensing, device testing, and overseas shipping costs.
4) Don’t underestimate fulfillment shipping because packaging a thousand shipments is no small task. Have friends help by holding a shipping party. Remember to budget for packaging materials and shipping costs in your reward levels.
5) Be extremely on top of communications with backers. You will get all kinds of messages that you should answer promptly. Negative comments should be addressed directly in a polite manner. Be genuine in your interactions.
6) Spend time crafting a great video. The bar for crowdfunding videos gets higher and higher. Be creative and different while showing your passion for your project. Many people hire professional videographers, but that could cost up to $10K.
7) Many people roll out stretch goal options. Plan out these waves and time them with waves of media.
8) Kickstarter vs Indiegogo. Different types of crowdfunding platforms have different advantages and disadvantages. In particular look into how they handle credit card transactions, what type of customer service they offer, and what restrictions they have around product or content types. Despite being similar these days, Kickstarter still has a little more name recognition and reputation than Indiegogo. That said, Kickstarter has upped their restrictions and you may be forced to use Indiegogo.
9) Crowdfunding is almost more about getting customer feedback and concept validation than the money itself. Take advantage of the opportunities.
10) While it is an incredible amount of work, remember to breathe and have fun! :)