Thinking About Crowdfunding? Here’s How to Make the Most of Your Network

March 26th, 2015   |    By: The Startups Team

When beginning a crowdfunding campaign, it’s important to evaluate your network and establish exactly who will make up your base of support. The success of your crowdfunding campaign will largely rest on how effectively you communicate your launch within your various networks. Once you’ve identified a group of potential backers – it’s also important to structure your rewards tiers in the most compelling way possible. Take into account what is most interesting to your group of potential backers and structure your rewards tiers in the most compelling way possible.

Your network can be divided into four main groups: friends, family, customers, professional contacts, and audience.

Friends

Your friends include those you see on a regular basis.You can reach out to this group in a variety of ways. Try a combination of social media updates, emails, and personal conversations to leave no stone unturned.

Family

Your family members are the most likely to support your crowdfunding campaign. While many entrepreneurs shy away from pitching family members, it’s important to let your biggest fans know about your venture!

You can reach out to your close and extended family members through a combination of emails, personal contact, and social media updates. However, you’re much more likely to have a positive reaction through personal, one by one methods of outreach to family members.

Customers

Do you have former clients or are you conducting a crowdfund to grow your current business? Reach out to let them know how to support your new business endeavors.

You can let your current clients know about your crowdfunding campaign through in-store promotional items, redirecting website traffic to your crowdfunding profile (for product purchases), social media updates, and email blasts.

Professional contacts

Your professional contacts include former partners, co-workers, employers, supportive vendors, and any other people you had a significant business relationship with prior to beginning your startup. Please note that it is not appropriate to solicit employees for funds.

Business contacts will respond well to email blasts and personal contact with a specific ask. This means that in your messaging, you should include a specific dollar amount that you would like your contacts to pledge. Your tone should be more formal than the messages you send to family and friends.

Audience

Your extended network of Twitter followers, Facebook friends, and fans can be referred to as your audience. Your messaging should be more casual in tone, and mixed with other messages about your industry.

Also worth a read:

  1. The Anatomy of a Successful Crowdfunding Campaign
  2. The SEC JOBS Act and Title III Crowdfunding
  3. Does Crowdfunding Breed Angel Investors?
  4. 3 Ways to Make Your Crowdfunding Marketing Campaign a Smash Success
  5. How to Create an Effective Crowdfunding Video for Your Startup

About the Author

The Startups Team

Startups is the world's largest startup platform, helping over 1 million startup companies find customers, funding, mentors, and world-class education.

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