Crowdfunding isn’t just for cash-strapped startups or entrepreneurs who cannot launch a traditional fund-campaign. Even big companies use crowdfunding today to launch exciting products, services, and for-profit and non-profit projects.
Whoever you are, and whatever product you have, crowdfunding is an affordable way to raise funds, interact with your backers, and form a community of people who will help develop your product. If you have not used crowdfunding, you may be limiting yourself and killing exciting products from getting to the market.
Ideazon, a company that has partnered with many individuals and businesses by helping them crowdfund without spending on marketing and market analysis, has revealed six reasons you should launch your crowdfunding idea in 2020.
1. Crowdfunding Gives your Business/Product Exposure
Kickstarter and Indiegogo receive millions of visitors every month. That’s a lot of numbers and a community that you can tap into to promote your business or product.
Unlike traditional fundraisers, crowdfunding generates fuel from social acceptance; and all crowdfunding platforms will push your products to potential investors and backers if you can create enough exposure in the initial stage.
The great thing about crowdfunding is that opinions about your product aren’t limited to just a few investors looking to win big with the ‘next best thing.’ If your product is excellent and can make the initial advertisement investment to get it spread across many potential investors, you may be able to generate enough exposure for your idea to go viral.
2. More money; affordable means
Is the global pandemic affecting crowdfunding? Absolutely! With employment rates dropping in the United States and most people struggling with the realities of Covid-19, it is only standard for industries to take a dip, and the crowdfunding industry isn’t left out.
eFOLDi, the electric scooter manufacturers, suffered shipping delays in their Kickstarter campaign. Many businesses will face covid19-peculiar problems like shipping and lack of funds; however, with dedicated crowdfunding backers like Ideazon, you can get your idea on the run in Kickstarter, Indiegogo, without having to spend money on advertisement.
Ideazon takes your great idea and puts life to it by backing your crowdfunding campaign from the inception till the end. If you are still bothered about how you can successfully launch a crowdfunding campaign in this global pandemic, you can watch a video created by Ideazon, as they explain the intricacies behind a successful crowdfunding campaign during a worldwide epidemic.
3. Community Building Around a Product
A market is a meeting point of product, buyer, and seller; that is, your product must meet consumers’ demands for it to be declared as marketable or for it to earn you an income.
However, the success of your product depends on a host of other factors than ‘demand.’ If there is a demand or a future demand for your product and you cannot meet those demands, your business will suffer.
If you do not have the finances to give your product the right exposure to enhance more exposure, your business will fail. Crowdfunding solves the problem of money and exposure and helps you build a community where backers will offer in-depth and smart feedbacks on how you can make your product successful.
The growth process of crowdfunding campaigns is so robust that backers and idea-owners will often form bonds built upon the product’s need to be successful. When you crowdfund, you tap into a vibrant community of people who want you to succeed.
4. Generate Revenue with Limited Risks
Crowdfunding helps you pre-sell hundreds to thousands of units of your product between a 30-60-day pre-launch period. Crowdfunding’s pre-launch sale feature gives manufacturers leverage to sell some of their merchandise before an official lunch. This feature:
- Improves productivity and economies of scale. With massive pre-orders, manufacturing costs will reduce, hence an increase in profits.
- A successful pre-order campaign can lead to more pomp that will result in excellent sales after your product’s official launch. For a pre-order campaign to be successful, you need a prototype and a good marketing plan. If you decide to launch your crowdfunding campaign with Ideazon, you can take advantage of their long years of experience helping products sell through crowdfunding, launching and executing marketing plans, covering finance, and analyzing consumer data.
5. Sell Your Inventory Line
So, you have run a successful crowdfunding campaign for a product, but your company has a line of six to seven products; the great news is that you can always introduce your backers to products similar to the one you crowdfunded for. Even if you have a product line that is not similar, the relationship and trust you have built with your backers will enable you to upsell products to them.
6. It’s much fun
Crowdfunding allows you to learn about your product and learn about yourself, find your vision, and build relationships that will last for a long time.
Read Next: 5 Tips for Crowdfunding During the Pandemic