Crowdfunding is a type of online project financing that is based on the principle of fundraising. A method adapted to the Internet age, it aims to attract the attention of a wide audience through good communication techniques.
What is crowdfunding?
Crowdfunding is an online fundraising tool to finance an associative or corporate project. This alternative method of financing is aimed at a wide audience and is essentially based on communication during the campaign.
Crowdfunding is used to raise the funds needed to carry out a project or mission. This solution is generally adopted in the context of sums that are difficult to raise by traditional financing techniques. Crowdfunding is a legally regulated online campaign method that requires the use of a dedicated and regulated platform.
There are three types of crowdfunding possible adapted to the different types of projects supported by the crowdfunding campaign:
- Collecting donations
- Free or interest-bearing loans
- investments
How to conduct your campaign well?
Define objectives and rewards
Before you start the fundraising campaign, it’s important to specify the different goals you want to achieve. You must establish the duration of the campaign as well as the amount to be reached to support the project.
If you opt for a collection of donations with rewards, it is also essential to set the donation levels and rewards beforehand. These can be material (goodies, t-shirts, etc.) or symbolic (postcards, thank you notes, etc.).
Participation
The first participations usually come from the close circle of the association or company. The entourage, members and employees represent the first donors of the fundraiser.
Therefore, it is important that the project is a collective work, supervised by strong ambassadors, so that members find themselves in the cause for which you are asking them.
Financial transparency is also a crucial point in convincing donors to participate. Clearly state your expense items. This detail will allow contributors to know precisely how the money raised will be used and to increase their confidence.
Communication
The success of your crowdfunding campaign is essentially based on communication. The crowdfunding platform and the presentation page of your project are the heart of your approach. The visual is crucial to arouse the desire of Internet users to contribute to your cause.
Having a communication plan in place before you start fundraising is a critical step in your project. The crowdfunding campaign is a technique that extends over a given period of time and therefore requires a regular communication system.
To do this, you can use all the communication channels at your disposal: email, Facebook page, press… You can also use a sponsorship from a public figure to promote your project on a larger scale. The important thing is to maintain a dynamic rhythm of communication throughout the campaign to continue to reach donors and encourage them to donate.
The crowdfunding campaign is a call for public generosity. Engage with messages tailored to the target audience, as well as a thank you message for their participation. You can also keep them informed of the progress of your project, in order to retain your donors to your cause.
The Donation module of the eBrigade software manages donations and donors with automatic reminders.
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