Have you ever wondered which crowdfunding platform to use? There are more and more options out there. From places like GoFundMe where you can raise money for anything including person needs, to Republic where you are raising a crowd funded investment round. The one most people are aware of for funding projects is likely Kickstarter. They are one of the first really well known platforms and lead the way. However, there are many options today providing different options that will fit different projects and people better.
Of course, raising money for a project isn’t always best for crowdfunding. There are other options beyond crowdfunding platforms and we’ll cover a few of these as well. Now let’s get into a few things to keep in mind when looking at your launching options.
Do products like yours have success on the platform?
If no one has had a successful campaign on the platform you are wanting to use it might not be the right platform.
You should look at each platform and see if any products similar to yours have been successful. There are many to choose from, so do your research. Make sure you look at the types of platforms for the kind of fund raising you are seeking. Here’s a few types:
- Person based – such as Go Fund Me
- Product Project based – such as Kickstarter
- Company/Product Project based – such as Indiegogo
- Investment based – such as Republic
If you find one platform that jumps out as having more successful campaigns on it for your area, then that’s a good indicator to use it.
What does it cost you?
Look at what the fees are. There can be requirements to raise a certain amount, transactions fees, platform fees, and others. It’s important to compare fee structure when selecting the right platform for your project. Beyond just the fees, some have requirements to meet a certain goal, or you can only keep what is raised if you reach your set goal, others allow you to keep anything you raise. While some , and if there are any requirements to getting the money raised. Factor this in when you compare campaigns.
Are there any limitations to the platform?
Not that there are limitations on all platforms, but there may be restrictions on products or categories you can enter into.
Is crowdfunding the right platform in the first place?
Crowdfunding can be great, but you need to be in the right part of the development process to make it valuable to you.
Crowdfunding works for some products, but as most people have seen, some wonderful ideas have “failed” with crowdfunding, while some seemingly terrible ideas have made thousands if not millions through crowdfunding.
Crowdfunding can be a very fickle and hard-to-nail down system. There are other options you should also consider, especially if your end customer isn’t the general public.
Angel investors
Yes, this means you will present to people and sell your idea, but this is a great way to launch something that is more proprietary or doesn’t meet the general needs of the public.
Self-launch
This isn’t necessarily as hard as you might think. While it can take cash upfront, many successful businesses have been started in a garage building small amounts of a product and building from there.
Friends & Family
You are going to ask them to chip in any way if you launch a crowdfunding campaign. Sometimes it’s worth asking family and maybe they’ll be more financially supportive than you thought. This of course doesn’t apply to everyone, even I didn’t grow up with a family that could fund a new product business venture.
Incubators & Accelerators
Many start-ups don’t think about this option at all. Incubators are organizations that take in businesses that look promising and help them to grow. They work with them in a number of capacities including financial help (though not always directly) they often have connections with investors of many different types.
These points will help guide you as you go through selecting a crowdfunding platform, or not. Making sure you select the best option will help create success for your project.
Your Next Steps
Launching a Campaign
Do I need a manufacturer before launching a crowdfunding campaign?
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5 Tips to Creating Your Product Launch Plan
NASA isn’t the only place that should have a launch plan! After all of your time and money spent polishing your product the launch is a crucial step between your investment and your profits- NOT something you want to wing. It may feel like the end of a development process but it’s also the beginning of your next phase of business. At the Peterman Firm we support you through this stage, because creating a product launch plan can make or break a product in the market. We’ve seen many products flop because they didn’t have a plan at all. These are things you’ll need to be thinking of whether we help you or you launch on your own. Run the numbers When you have a final design that has been prototyped and you are looking to manufacture, you should be getting quotes from manufacturers for full production. Look at every cost you might have and give yourself an idea of what it is going to take to buy the first 100, 1,000, or even 10,000 units of your product. Knowing your numbers will help if you need to get financial help with the launching of your product. Have backup suppliers As any good developer or sourcing agent should tell you, you need backup suppliers. I’ve see production lines go down because a company didn’t get a backup supplier for a single bolt. Without the bolt, the product wasn’t made. Having primary, secondary, and even tertiary suppliers is important to make sure your products are made in time and you are able to deliver. We work with our clients to ensure multiple sources are provided for projects. Sourcing is a very important part of developing your product. Decide your launch platform This doesn’t just mean crowdfunding. Is your product going into large box stores, online marketplace, your own website, or some type of crowdfunding/launching platform? This can help decide what quantities you will be ordering in, and your marketing strategy. Are you going to use Amazon or another ecommerce site not run by you? If you are using a crowdfunding platform, there are definite differences and you need to research similar products and which is best for your industry and market. Set realistic goals It’s a good rule in general, but make sure that your goals are measurable and achievable. Especially while you are going through the process of launching an entire new product, keeping focus and having success happen is important. have a marketing strategy You need to know the who, where, and how of your marketing. There are lots of templates and website dedicated to discussing marketing. Who are you marketing to? It may be someone other than the user (such as baby toys). Where are you marketing? Online, radio, TV, billboards, etc. How are you marketing? Paying someone else, friends, or doing it all yourself? It doesn’t matter, just know what you are doing. BONUS: Keep your product launch plan flexible Don’t forget to create the actual plan! Just kidding, I’m sure you remember that. A quick note on plans, though. They never survive contact with the real world, so keep it flexible. Especially if you are a bootstrapping startup. Keep these things in mind as you create your product launch plan. This part of your project is something you want to start on as early as possible. As a last tip, make sure you have the right partnerships. They can bring you down or raise you up, and are largely outside of your direct control. As a full development firm instead of just a freelancer, we link our clients with the best possible partners for every stage of the process. Your Next Steps Struggling to create your own plan? Sign up for our free tutorial and learn about our course 4 Weeks to Launch + free tutorial Impressive Products Why Product Demos Must Go Beyond Impressions better product demos Related Conscious Design BLOG Posts Author Mr. Peterman
