When I mention the word “crowdfunding” to my friends, clients or even a friend in the banking industry, I generally receive a blank stare in return. Before I go much further in this blog, crowd funding is the activity or process of raising money from a large number of people, typically through a website, for a project or small business.
I know what you may be thinking…what does raising money have to do with digital marketing and advertising? Well, I’m glad you asked! I was recently approached by an entrepreneur of a fitness equipment startup company to manage a crowd funding campaign and I admit, this was my first real exposure to the relatively new concept.
I have found in my research that marketing is central in any crowd funding campaign when you consider what goes into the making of a successful campaign. Long before anyone pulls out their credit card to fund your prototype or concept, you must build a solid strategy to identify, attract, and engage a community of like-minded individuals who will ultimately fund and share your vision for the new product or service.
Today, crowd funding is a $20 billion dollar industry and by 2020, it is estimated to reach $100 billion. There are between 500-700 crowd funding websites available for different concepts such as for art, social causes, and more. So, why is this becoming the new way to raise needed capital for new start-ups? To answer the question, we first need to understand the traditional methods available for an entrepreneur: bank loan, angel investor, loans from family and friends. As you can see, these methods are limited in number and resources. Now, in today’s economy, the Internet has changed the rules for tapping into new sources of capital not limited by geography or demography!
In his book Bold, Peter Diamandis, writes about the incredible power and essential best crowd funding practices that allow anyone to leverage today’s hyper-connected crowd like never before. He also mentions how crowd funding enables today’s entrepreneurs to tackle the kinds of enormous challenges that were once only possible for governments and major corporations.
Do you have a new concept that could challenge the status quo on an existing or familiar product or service? Have you ever considered a patent on a revolutionary new product idea or prototype? If so, you may have felt completely overwhelmed on how to take your prototype or invention to market. The team at High Road Digital can come along side your new concept and guide you through the necessary steps to successfully plan and execute a crowd funding campaign. Give us a call or drop us a line today.