Ever had a unique idea for a physical product, but uncertainty around funding has kept you from realizing your dream? Crowdfunding could be your golden ticket! We’ve helped companies raise over $500 million in crowdfunding. 100% of the companies we helped had these 7 must-haves in their campaign. If you plan on crowdfunding any time soon, make sure you do too!
Crowdfunding could be your golden ticket!
We’ve helped companies raise over $500 million in crowdfunding.
100% of the companies we helped had these 7 must-haves in their campaign.
If you plan on crowdfunding any time soon, make sure you do too!
Let’s take a look:
1. A Solid Prototype
It’s an unwritten rule:
Any physical product crowdfunding idea is incomplete without a solid, tangible prototype.
It brings your idea into reality and creates an initial ‘wow’ factor that attracts potential investors.
Take the Oculus Rift VR headset for example.
Oculus VR planned an initial funding goal of $250,000 but ended up raising a $2.4 million!
Their awesome prototype played a big role.
It persuaded backers that their vision was not only feasible… but beautiful.
2. An Engaging Pitch Video
A well-crafted pitch video can powerfully communicate your product’s:
- Value
- Vision
- Functionality
It acts as a visual elevator pitch and can significantly enhance trust and credibility.
Remember the Revolights Bike Lighting System campaign?
Their bike light system got investors’ attention, but it was their awesome pitch video demonstrating the product that ultimately helped them beat their fundraising goals.
3. A Compelling Story
Sharing a personal touch in your campaign fuels an emotional connection.
Explaining why you embarked on this journey or the underlying problem you’re solving helps build an intimate bond with your backers.
Pebby, a smart robotic ball for pets, raised over $500,000 on Kickstarter.
Their campaign included a compelling story about the founder’s dog, Pebby, who inspired the creation of the product.
The story of Pebby’s separation anxiety…
And the desire to keep him entertained & engaged while the founder was away resonated with pet owners…
Led to a highly successful crowdfunding campaign!
4. Clear, Detailed Product Description
Clear and simple explanations about what your product does, how it solves a problem, and why it’s different from other products can make people more interested in supporting your project.
Describe your product in a way that is easy to understand and clearly demonstrates why it’s special.
Show them how to use it and why they should care about it.
Clarity can turn curious browsers into product evangelists.
Consider the Lumio Lamp campaign.
It described its product as a “portable, multi-purpose lamp that conceals itself as a hardwood book.”
You know instantly:
- What it is (a lamp)
- What it looks like (a book)
- Why it’s valuable (multi-purpose, space-saving)
This concise description grabbed backers’ attention, and Lumio Lamp raised over $570,000.
5. Credible Team Presentation
Show who is behind the product and their expertise.
When a project is open and transparent, people are more likely to think it is being run well — which improves the project’s reputation and make it easier to get funding or support.
Transparency also helps people understand how decisions are made and what the project is trying to do in the long term.
Take the Formlabs 3D printer, for example.
They raised almost $3 million because they had a team of experienced engineers from MIT.
Their product took advantage of gaining “trust by association” with such a prestigious college.
6. Realistic Goals and Timelines
Be honest about the amount of money you need and the expected delivery date of the product.
It builds trust & makes investors believe that you can turn your idea into a reality.
The Pocket Drone campaign on Kickstarter is a good example of this.
In their pitch, they thoroughly explained:
- How much money they needed
- A clear timeline
- The steps involved
- Why each step mattered
Investors knew exactly what they were getting and when.
Being so thorough also impressed investors as it showed how much time and effort they put towards their work.
This will plant the seed in the investors’ minds that “my money is in good hands.”
Because they were open and honest, they were able to get over $1 million in pledges from people who wanted to support them.
7. Attractive Rewards and Pledge Levels
Backers expect value in return for their investment.
Offering meaningful rewards based on different pledge levels can increase donor participation significantly.
For example, SnapRays Guidelights campaign offered backers:
- Early bird specials,
- Multi-pack discounts
- Customized options for
This skyrocketed interest in supporting the campaign, and they ended up raising over $480,000!
So, if you want more people to support your campaign, think about what rewards you can offer at different pledge levels.
Maybe you can offer a discount, a limited edition product, or a personalized thank you note.
This can make people feel like they’re getting something valuable in return for their pledge!
Final Thoughts
Crowdfunding can help bring your product idea to life…
IF you know how to do it right.
If you plan to run a crowdfunding campaign, make sure you have all seven of the above.
With the right approach, crowdfunding is a lot easier than you think!
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