Crowdfunding
What are the alternatives to Kickstarter?
You’ve got a brilliant idea for a new project or product, but you don’t have the funds to bring it to fruition. So, what do you do? You could consider a traditional bank loan, but with all the bureaucratic hassle and risk of rejection, you’re looking for another solution. You’ve heard of crowdfunding, or participatory financing, and you’re intrigued. But how do you run a successful crowdfunding campaign? That’s what we’re going to look at together in detail in this article.
First and foremost, don’t forget that you can create your own crowdfunding campaign here 👇
Key learnings from this article
Choose the right platform, take the time to explain your project, whether there are any rewards, communication channels, launch the crowdfunding campaign, and, of course, follow it over time to reach your goal.
1. Pick the perfect crowdfunding platform for you
The choice of platform is crucial to the success of your crowdfunding campaign. Each platform has its own rules, fees and community. Some platforms, like Kickstarter or Indiegogo, focus on creative and innovative projects. Others, like GoFundMe, are more focused on personal causes and charitable projects.
Tiing for its part can boast some of the cheapest fees on the market as you will see in this comparative table of crowdfunding platforms in Canada:
| Platform | Fees | Speciality | Localisation |
|---|---|---|---|
| Tiing | $1 per entry + 4% commission | Tiing is a general participatory financing platform that enables individuals, professionals and NPOs to raise money for all kinds of projects. | Montreal, Quebec |
| La Ruche | 7% (plus taxes) if target reached | Must contribute to the reputation of the region of origin. | Quebec City, Montreal and Mauricie regions |
| Yoyomolo | 6.9% + $0.10 fee for donations of $20 or less | Projects supporting a cause. Possibility of using yoyomolopro. | Quebec |
| Ecloid | Approx. 10% if target achieved | Support from a dedicated consultant. | Quebec |
| Ulule | Between 6.67% and 4.17% if target achieved | For diversified projects, the project must be supported by 5 people to go online. | France (now in Quebec) |
| Kickstarter | 5% if target achieved, plus 3-5% donation management | Popular platform, does not accept charity projects, only creative ones. | United States, international scope |
| Indiegogo | All or nothing: Approx. 8-10% if target achieved, Flexible: 8-10% even if target not achieved. Return of 5% if target achieved. | Flexible, diversified platform, generally lower targets than Kickstarter. | United States, international scope |
| GoFundMe | 9.25% for charity projects, 6.7% to 7.9% for other projects | Individual projects and personal charitable causes. | United States, international scope |
Before choosing a platform, ask yourself the following questions:
- What is the target audience for my project?
- Which platform does this audience use most?
- What amount of financing am I aiming for?
- What types of projects are generally financed on this platform?
The specific features of different crowdfunding platforms
Kickstarter, for example, is known for being an “all or nothing” platform: if you don’t reach your funding goal, you get nothing. This can be a risk, but it’s also a way of motivating contributors to reach the goal.
Other platforms like Indiegogo offer the possibility of receiving funds even if the goal is not reached, for a higher fee.
Some platforms specialize in certain types of projects:
- Ulule for creative projects,
- KissKissBankBank for entrepreneurial projects,
- GoFundMe for personal and humanitarian projects…
So it’s important to choose the right platform for your project.
2. Make a catchy video about your crowdfunding campaign!
This is where you’ll describe in detail what you want to achieve, why you need it and how you intend to use it.
A presentation video can be a great way to communicate your passion and enthusiasm for your project. People are more likely to fund a project if they can see and hear the person behind it.
Make sure your video is of good quality and clearly communicates your message.
3. Look after your campaign page
Your campaign page is your window display.
It’s where potential contributors will come to learn more about your project. It’s essential that this page is attractive, clear, and convincing. Information must be presented concisely. People need to be able to quickly understand what it’s about and why they should contribute. The same principles apply here as on a classic web sales page! If you’re familiar with the techniques of copywriting (the art of selling through the written word) or storytelling (the art of storytelling), now’s the time to use them!
If not, get trained.
Use high-quality images, videos, and graphics to illustrate your project and its potential impact.
4. Work on a detailed communication strategy
Communication is the key to a successful crowdfunding campaign. You must constantly inform your community:
- the progress of your campaign,
- on the progress of your project
- and the obstacles you encounter.
Don’t hesitate to use all the communication channels at your disposal: social networks, emailing, blogging, the press… Don’t forget, for example, that Facebook, which has its own donation collection platform integrated into the social network, is often a good place to share your crowdfunding campaign. But not only that, do your own market research.
The more you communicate, the greater your chances of reaching a large audience and reaching your funding target.
5. Think about rewards for the crowdfunding contributors
In most crowdfunding campaigns, the people who contribute to your project receive something in return. This can be a product, an experience, public recognition, etc.
Be aware that this is a very recurring practice, so you’ll want to strongly consider it. Rewards are an excellent way to motivate people to contribute to your project. The more attractive the rewards, the more inclined people will be to give.
Make sure, however, that you can deliver on your promises: don’t offer a reward you won’t be able to provide.
6. Launching the crowdfunding campaign
Think about the impact of first impressions!
This is when you unveil your project to the community and ask for their financial support. So you need to be ready to answer questions, handle interactions and promote your campaign.
It’s advisable to prepare a series of posts for social networks (use a social network post publishing app for this, such as Monday, Planable or Sprout Social, you could save time!) and have a list of people to contact directly, be they friends, family, colleagues or influencers in your field.
On launch day, make sure you’re very active on the networks and respond quickly to any questions or comments.
Another aspect not to be overlooked is the duration of your campaign. A crowdfunding campaign generally lasts between 30 and 60 days. Too short, and you may not have enough time to reach your goal. If it’s too long, it can lose intensity and public interest can wane.
7. Monitoring and following your crowdfunding campaign
After launching your campaign, it’s essential to follow up regularly.
Check regularly on the progress of your campaign and contributions. Respond to your contributors’ questions, comments and concerns. Recurring follow-up will keep you in touch with your community, resolve issues quickly and keep your campaign on track.
As you can see, a successful crowdfunding campaign requires good preparation, good communication and constant involvement. So, are you ready to launch your project?