All About Crowd Funding

Small business CROWD FUNDING How to Tips and Resources.
How to do a Crowd Funding, Tips & Guide,
List of Resources, links of Platforms & Services to help you get started right
Helpful Pages

You've heard about Crowd Funding. But LISTEN UP.

Crowd Funding is an online method to raise some early funds for organizing or concept stage. It is people who GIVE you money. Most sites for crowd funding are not allowed to bring REAL INVESTORS. That requires a stock offering and stock brokerage firm and Legal Filings.

Don't just jump on a Crowd-funding site - platform and think you're going to raise a lot of money.
There are about a hundred important things to know, but at least 10 major Tips before you begin. First and foremost is to KNOW BUSINESS, and KNOW what a real business looks like. You get that by reading more on this site. See Avoiding Business Opportunity Scams.

In everything about Crowd-Funding, understand that certain Legal & Ethical Requirements always exist::

1) Don't offer a bum opportunity or idea: Don't present a me-too ho hum business idea. It won't sell and won't raise funds. If you don't have a really good idea, don't waste your time. And if you are not a worker, don't bother. You have to prepare as explained below.

2) Be Honest and DISCLOSE all risks: Most funding sites are NOT about investing. The people GIVE you the money usually expecting a few "perks", special treatment, previews, special editions, first production items, etc. . Get them what you promise, PROMPTLY or you'll be blacklisted by the site and probably Paypal. Always act as if this was a practice run for real investors. Make an honest presentation.

3) Think and study about business and selling: A disadvantage of Crowd-funding is that the money donators are not usually serious business people who expect profits. This can give you a false read on how good your idea-product really is.

Here are a few more things to remember before you begin.

Because you are starting a business, go through all the steps at the introduction to "Alternatives to a Job" to see if you're really ready to run a business.


Evaluate your situation and yourself. Are your math and communication skills at least fair? Are you a self-starter? Are you flexible and well-rounded, versatile? Can you work with multiples tasks and do both solitary work and with a group. Do you enjoy forming a team? Do you like explaining things to not always bright people? Are you a salesy folksy person who easily talks to people. That is the business side. Can you work fast and produce? Those requirements never change, from employee to boss. Just remember marketing and sales take priority.. Now if you're still ready to launch into fund-Raising, begin reading more.

Your top priority is ALWAYS your product must meet demands in society, and must be unique in as a source in the territory you are selling in.
Else you are wasting your time.
Doing this for a Fund Raising can be helpful in several ways. It forces you to get organized and think about the Appeal and Business aspects. You may later use this approach to getting real investors or corporate partners, or for selling licenses.

Keep that in mind as you proceed.

Also SEE our
CrowdFunding Helpful Links & Resources Page.

Top 10 Tips for a Crowd Funding:

1) Decide what idea is best, Unique and Emotional:
Crowd Funding is a little like marketing on the Internet: Having a NARROW FOCUS and being SPECIFIC is key.
But it is different in that you have to MOVE PEOPLE emotionally. An idea has to have a big emotional component, like a Cause celebre. The concept has to get a Love or Hate response. Indifference spells death to the funding.

But even more important, it has to be GOOD- Exceptional. It has to strike the Funder as really outstanding and unique, with some kind of advantage over others.

2) Prepare a great Logo and Headline:
Consider doing some tests with a preliminary website. Test APPEALS. What gets clicks? Have your web marketing consultant and PPC manager (Google Adwords) set up tests for you BEFORE you launch your campaign. This assumes you want to raise over $4000. If less, you may just do some Google search tests to see what people look for related to your product. You should have done this anyway to make sure you want to try this product.

3) Study which Fundings do better on Funding Platforms:
This is where you also determine which Crowd Funding Platform to use. But more important is the categories and type of fundings that get the big money on these platforms. Each Funding site is a little different. Many are artsy, about Plays and Music and Drama, books and creative projects.

Choose the "keep funds raised" option. The commission to the site is a little higher, but worth it!

Choose the best category for the Fund site that matches your product's type. Some of the technical concepts usually go under "Design".

You will likewise find a liberal and social orientation to many Crowd Funding sites. A site like Causes often gets little money but maybe lots of followings for some ideas. That may not be very helpful to a technical or just solid basic business concept like Jalapeno Ketchup (one of the Buyers' Group successful clients). Or, it can help test your ideas some. Some of those supporters MIGHT contribute, so do that months ahead of the Fund raising.

4) Study HOW the Successful Fundings are done:
There are certain elements of successful fundings, besides creating emotion and interest. Often their presentation is cool, with a classy picture and logo, lots of personal interest, lots of Buzz and Glitz and a "coolness" factor that is hard to duplicate.

If you did your homework, you already have most of this figured out and prepared. You will probably need a consultant, and some graphics work. Keep in mind how much you want to raise. ALWAYS START CONSERVATIVELY. The sites rate you on success of funding as it goes.

Remember to look at what a real business is, at our Tips on Buying a Business, and Avoiding Business Opportunity Scams. That will remind you of what also should excite in your presentation, the same elements of a good business and product, a "wow" factor.

5) Allow plenty of time to prepare
Prepare at least 3 months in advance. YOU need time to hone the product, graphics and presentation. You need even more time to lay a base of Twitter followers and others that you are ready to tell to go see your funding project. If you don't have at least about 1000 followers of the concept or your company or self, you are NOT READY.

Most preparation is research on hone the APPEAL of the Idea. You should have tested on Google, and seen what people want, and search for.

It is usually better to project SUCCESS, not Begging as Desperate, like you're going to be on the street if you don't get money. Success has many fathers. Look like your funding will be SUCCESSFUL.

You also have to be prepared with updates and the test content you will use in your appeal. You may need pictures and a VIDEO on Youtube is ESSENTIAL, showing a Power Point Presentation, or you and your team showing yourselves and YOUR PITCH.

You already should have had your UNIQUE SELLING PROPOSITION down to a fine art and an easy spiel. You should have a GREAT HEADLINE and subheads all ready. You should know your BULLETED topics.

Your presentation talks about your team, why you believe in the idea, the responses you've had to it. or it talks potential and importance. It's short, clear, bulleted and exciting. Concise and Succinct.

Your presentation is like a mini Website, but more about why you need the money and how it will make a difference. NOTE how the better fund raisers do that, laying out a budget, even graphs.

And you need time to prep a preliminary Website, to explain in a bitg more detail and show you are getting underway and serious. Probably at least 3 pages or 4.

6) Have a good Preliminary Website and Content Ready.
The best way to prepare for this Fund Raising is to outline your preliminary WEBSITE and use that as your first working content to pre-stage your business and fund-raising. It should be better than a "Under Construction" site. It should give the basics, the appeals, show you have some ability to manage a web project and present an attractive communicative standard site. Avoid Wordpress for all of it. Don't get too complicated.

Follow some of the steps on for at least the Quick Website method. Read the different aspects of promotion and good management and strategy. This will help you form your Content and Appeals for your Fund Raising.

Really pay attention to how Strategy and market research should guide the Website Design. Following that site will help you create a winning business and marketing plan, which will make your Fund Raising much easier and likely more successful. They overlap.

7) Plan your Perks and Motivators
This is NOT investors, normally. The SEC has dragged its feet for years on really allowing true Crowd Funding with investors. SO you are hoping for GIFTS. Most of these will be $10 to $50. You have to motivate these givers with perks. Read up on them, watch what others do. Be careful you can easily fulfill with a Discount Coupon or similar, so you can RAPIDLY fulfill those perks.

Otherwise your funds will be held up. Actually avoid any tangible perks besides great thank you's and mentions, for gifts less than $30. Simply study all kinds of perks, then simplify. Paypal and some Funding sites won't release funds till these people get their perks AND indicate such. That can cause problems. Go easy on perks, keep em simple. if you promise T-Shirts, better have 20 or 50- or more printed IF you're sure you have lots of interest.
Don't bother on most of that if you're raising less than $2100.

8) Put most of your work into the GRAPHIC, HEADLINE and Top Subheads
If those don't capture the givers, nothing will. It is best to test this on some people before you begin the fund raising. It should be VERY clear to them and motivating. Small changes in headlines can make a huge difference.

Pay close attention to the best graphics summary of the projects raising funds. Some have little gif's that move like a 4-frame little movie. Those get attention.

9) Don't try to raise too much and have 1/10th of it ready to be put in:
Just like in real life, competition is fierce for fundings. You must really have conservative goals because the sites rate your project as it proceeds based on success-to-date. If your project raises no or few funds, it gets knocked down. It gets less or no hits. It is a lot like how Google ranks by interest.

This is why you MUST have friends, family, prospects and WHOMEVER ready to start putting money in very soon, some at very beginning, and then more at about 4 to 6 days into the funding. You MUST raise 10% in the first 6 days, or your funding will fail.

If you can't be sure you can get $100 put in within 6 days, that says don't try to raise more than $1000.
Understand--seting the goal high works against you.

We are not going to suggest you give money to friends to give, but some have given "matching funds" to help get it rolling, as sort of a perk to them to get on board. Again, you better have at least 1000 followers on Twitter or somewhere.

Consult with Crowd Funding Experts and Twitter PR experts to help you get this going. Talk to Buyers' Group MG about their Marketing Services for a reasonable cost of a couple of hundred bucks to get started. They can help on all aspects from Web design to appeal testing and promotion. They can write content and headlines to get you going, and critique your ideas before you put them up for the world. See Web-Success marketing services division for web business planning, promotion methods, content writing and site critiques. See Web Business Tips informational pages (links on left).

Be sure you read Before you Begin a Business or even register a domain name, create a logo, chose a hosting company or begin to design your web site, talk to them, and read most of the Web Success pages.

10) Work at the Funding DAILY: You should work your friends and Followers hard the 3 days before the Funding. Get them going with a QUICK 1 question survey, etc.

Don't over do your link postings and spamming or Twitter etc will BAN YOU. Get help on this. Hire some touters to help you.

Offer to trade help with some project people who are starting their funding too. Post updates and graphics, images and videos. Talk about developments on the site. Talk about business or website progress. SHOW YOU ARE A WORKER, that you are getting it GOING. It all comes down to getting the first 8 days rolling well to keep a ranking on the Funding site. Then work to keep that momentum going. If you do that, you'll head into the end with some interest and ranking. Else it will fail.
If you are about 25% there at the half way point, GET BUSY and start BEGGING too. Do anything you can legally to get near 50% by 3/4 way through. if you do that and keep at it, the momentum will pick up again in the last week as You work HARD at it. The ranking will go up and it will show on the soon ending list.
Get your PR and promotion firm and their buddies to help you. If it is raising money, spend a little for help. Your project may get way more than you're asking with that kind of help.
That's the high points. Stick to one project at a time and work it. Don't spread all around hoping without work and essential preparation. Well GOOD LUCK

Helpful Pages" consumer and citizen better living tips are sponsored by Buyers Group and Business Standards Institute.

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