Crowdfunding is a great way to raise funds for your startup and it isn’t as easy as adding some content and a brief description of your product/service and expect money to magically appear because it won’t. That is why I’m going to tell you what you need to do to start a crowdfunding campaign.
1. Prelaunch Campaign
An email list and survey are actually two of the many things within a prelaunch campaign which is what you should start with before going head first into creating a crowdfunding campaign.
2. Email List
If you’re a starting a new business and don’t really have the funds to move forward without some help this is one of the first things you should do to run a successful campaign. Mailchimp is a great site to store an email list. There is also an app as well which is easy to use and though there are some premium features most of it can be used for free! Once you create an account on mailchimp or another email list site you’re going to need to find a way to get email addresses from people which brings us to the next step.
Next, I recommend you create a survey with a few questions. An excellent site you can use for making a survey is typeform. Again, this site has some premium features as well, but it’s mostly free and easy to use! At the end of the survey there is a feature where you can put in to ask for their email address.
4. Get an LLC/ Bank account
Unless you are already incorporated, make sure to set up an LLC for your crowdfunding project and get a business bank account. Revenue from rewards campaigns and pre-sales of goods are taxable income so talk to your CPA. LLCs are rather simple and inexpensive. You can use sites like legalzoom or even get a lawyer to help. In my previous blog called: The Logistics of Creating a Comic Book Company I explained the forms and the publishing you’ll need to be recognized as an LLC.
5. Social Media
This I stress is a HUGE step! Connect with your peers and with the peers of your peers! Go to Facebook, Twitter, Instagram, hell even Pintrest and market yourself on there!
6. Research and Pick the Right Platform For You
There are a bunch of different crowdfunding sites that are all great in their own way, but some have specific reasons to be used like, gofundme is used for raising money for more personal reasons than a business while kickstarter and indiegogo are more for business related funding. Also, you need to do your research on which site you’d rather use because for our business we had our heart set on kickstarter until we actually looked into it and on kickstarter if you don’t raise your goal by the time you have you don’t get any of the money raised at all. Now, indiegogo is different in the sense of if you don’t raise your complete goal you get anything that was raised. There is one thing you need to know and that is if you do reach your goal you are charged by kickstarter or indiegogo a percentage of your funds because well nothing is free.
7. Set a Funding Goal
Creator and writer of The Seer Chronicles, INK, Scales, and upcoming titles. CVO of SeerNova Comics LLC.