In recent years, many fundraisers have launched crowdfunding projects on online crowdfunding platforms to raise funds for entrepreneurship or other projects. But do you know what risks there are in crowdfunding? If you want to use crowdfunding to realize your entrepreneurial dream, what can you do first to successfully promote your crowdfunding project? Don’t be confused, you will wake up after reading this article!
""Crowdfunding"", also known as ""crowd funding"". Crowdfunding refers to raising funds from the public through the Internet to implement various projects. It can be the source of economic support for entrepreneurs to achieve their ideal goals.
Just like Kit Man, the designer of ""Jin Jie Ti"" launched a crowdfunding campaign called ""Jin Jie Ti Fundraising and Character Creation Project"" in 2016, with a goal of raising 650,000 yuan, and finally succeeded in reaching the target before the deadline. Zhong exceeded the original crowdfunding target by 12,000 yuan!
The picture comes from the crowdfunding platform Kickasstype
Four Crowdfunding Categories
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Crowdfunding can be roughly divided into four categories based on the nature and purpose of fundraising:
1. Donation crowdfunding: The public uses investment funds to support community institutions, or uses crowdfunding funds for charity
2. Pre-sale crowdfunding: Backers expect to receive goods or services provided by fundraisers in return for their investment
3. Equity Crowdfunding: Project sponsors purchase equity in commercial investments to earn financial returns
4. Peer-to-peer lending crowdfunding: Sponsors provide loans to earn interest. Generally speaking, these are unsecured loans
Crowdfundingdoes not violate any Hong Kong laws. However, in theory, crowdfunding projects may be potentially regulated by different Hong Kong laws. For example, if the main purpose of raising funds through equity crowdfunding is a collective investment, it may be regulated by the Securities and Futures Ordinance.
These may be defined as ""Collection Investment Schemes"", so they must obtain approval from the Securities Regulatory Commission before they can engage in fund-raising activities. If they are not such crowdfunding activities, they will be considered illegal. Raising funds!
Although crowdfunding has long been popular in Europe and the United States, it is considered a new activity in Hong Kong and has no relevant laws and regulations. Some crowdfunding activities may violate Hong Kong laws, so you should be aware of the risks of crowdfunding before initiating or participating in crowdfunding!
In recent years, there have been many crowdfunding scams. For example, in crowdfunding activities for some pre-sale products, after investors provided crowdfunding funds, the sponsor suddenly disappeared. , if you can’t find it, take some money and leave!
You must have heard of the most famous crowdfunding project: Smart Coffee Machine Arist. At that time, the crowdfunding project raised over US$840,000. The product was originally scheduled to be shipped in April 2015. However, the project sponsors used different reasons, such as stolen computer data and registered patents, to postpone the product many times. The product has not been paid yet. transport.
The picture comes from the Internet
Peer-to-peer lending crowdfunding is also a high-risk crowdfunding project, because this crowdfunding project is an unsecured loan. If the loaned money cannot be repaid, the borrower will suffer serious losses. Therefore, before deciding to sponsor a crowdfunding project, you should pay attention to the background of the sponsor and the feasibility of the project, and then evaluate the crowdfunding risks yourself.
After understanding the risks of crowdfunding, when you launch a crowdfunding campaign, what should you do to promote your crowdfunding project? The editor below will teach you Five key techniques for promoting crowdfunding projects, so that your crowdfunding project will be more likely to successfully raise funds!
When conceiving a crowdfunding project, things that need to be considered include: the goals and prospects of the crowdfunding project, the uniqueness and feasibility of the project, and the expected outcomes after operation. Economic benefits and Cost and resource constraints etc. Well-conceived crowdfunding projects will not only make the content clearer and more specific, but also greatly increase the project success rate!
In addition, calculating the cost and resource constraints of a crowdfunding project is an important part because it will affect your decision on how much money to raise. If your crowdfunding product is successful and needs to be shipped, you need to calculate the shipping costs and then adjust the funds that need to be raised to avoid the problem of insufficient funds to operate the project.
In addition to being local, it also needs to be sent overseas for sponsors. At this time, international shipping costs must be calculated! If you don’t know the international shipping cost, just check it out【Shipping Calculation】! There are many countries for you to choose from~ You can also check out prohibited items. Don’t wait until the crowdfunding is successful to find out that the products can’t be shipped to foreign sponsors!
Although crowdfunding platforms will help you publicize and promote crowdfunding projects, crowdfunding platforms have a variety of projects. What you need to do first is to highlight your crowdfunding projects, so you cannot rely on crowdfunding platforms alone. Brings you exposure.
Most crowdfunding projects are funded primarily by your own backers. If you have a social media account with a fan base, you can promote your project on these social media and wait for your supporters to invest in your crowdfunding project.
If you don’t run social media yourself and have a group of followers, what should you do to increase the exposure of your crowdfunding project, so as to convert the contacts into sponsors of the crowdfunding project? You can check it out【Online Store Entrepreneurship】, teach you how to quickly increase your crowdfunding exposure!
In addition, you can publish crowdfunding project advertisements on major social media, or contact the media to let the media help you spread the word on a wider scale. Promote publicity and increase the number of people contacted. Just like Hannah Chen and Erjun Guo's ""Breaking Frank"", they both used different left-wing media reports to gather momentum.
uniqueness and feasibility and convince the crowd to invest in your crowdfunding project. You can also use touching background stories, product videos and pictures to convey your project concept.
Add your concepts and ideas for launching the crowdfunding project, let the sponsors know the purpose of the crowdfunding; talk about the benefits the project will bring to the sponsors; and clearly explain how to use the crowdfunding funds to realize the project. When supporting It is easier for investors to understand the content of crowdfunding projects and promote their willingness to invest.
Don’t think that the longer the crowdfunding period is, the better. According to the data analysis of the crowdfunding website Kickstarter, crowdfunding projects have the best effect if the funding period is 30 days and are easier to success.
The longer the time, the less likely it is to achieve your goal, so a month is neither long nor short, and it is enough for you to promote your crowdfunding project. The following chart reflects the relationship between crowdfunding time and success:
Image comes from crowdfunding platform Kickstarter
Update the crowdfunding project regularly to keep your backers informed of the latest status, maintain enthusiasm for the crowdfunding project, and invest more money in the project. It can also help you adjust the sales direction when your product is officially released. These sponsors may also become your supporters and ""pave the way"" for your next crowdfunding project.
A well-known crowdfunding platform known for helping people in the technology and creative industries. Using the ""All or Nothing"" model, you need to reach the crowdfunding target amount to get funds. If crowdfunding is unsuccessful, backers will not be charged.
After successful fundraising, a 5% handling fee will be charged from the total amount raised, together with a 3% - 5% payment processing fee. Crowdfunding takes 14 days to receive funds.
Similar to Kickstarter, fundraisers usually focus on innovative creative industries and community projects. There are two forms of crowdfunding: ""fixed funds"" and ""flexible funds"". If your crowdfunding project must reach a specified amount, choose ""fixed funds""; if there is no target amount, plan to raise Choose ""flexible funds"" as much as you want.
The platform charges a 3% handling fee and a $0.3 payment processing fee, and additional transfer fees will be charged based on the location of the account.
Looking at the left side so much, do you already know how to show it? If you want to know more information about crowdfunding and fundraising techniques, remember to pay attention to updates on our website! Watch for more[Information and Blog]
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