The four P’s of crowdfunding: how to get people to commit to your idea
"You want to offer people the chance to create things through you"
Very interesting blog over at our German colleagues of meinstartup.com. Alexander Prokop of Carefree Internet (sorglosbox) crowdfunded their “carefee router” solution, and explain in detail how exactly they went about. The blog is in German, but I’ve translated the main points:
How do you reach people commit themselves? Our goal was collect € 5,000 in cash within 4 weeks. This amount would help us design and develop sorglosboxprototypes and create a professional website. Our first step was to motivate friends and family, but of course we also wanted to get complete strangers excited. To do that, we found that you need to address the 4 P’s of crowdfunding
- Passion (Excitement)
- Perks (“Thanks”)
- Pride (pride)
These four aspects are the most common reasons why people invest in a crowdfunding project. It’s your passion and enthusiasm for your own project that inspires other people. That’s why making a personal video is so important, because then your crowdfunders can look you in the eye and see the passion there.
It’s also clear that you get more campaign supporters when they are rewarded with their original “thank you perks”. This could be a discount for a future product, a free sample pack or a preliminary test of the future service. Perks are often very individual and depend heavily on the subsequent product or service.
It is important that the supporters are actively involved in the project, and it’s crucial that you make it clear that success can be achieved only through them, because that’s where they derive that other P from: Pride! Imagine if you can say : “I was there and I believed in the idea of the founder and have made the project possible! “. In a sense, you give people the chance to participate and create something – albeit through you and your project.
That’s why we might want to add another “P”. It says: People (people). People never invest just in a product. They invest in the people and the philosophy behind it.
Since I just launched, I can warmly support everything Alexander Prokop writes here (you can follow Alexander on Twitter). It reminds me a lot of the so called “know why” that Simon Sinek talks about in this TED video, and that I would recommend to anyone working on a startup right now:
Talk to us!
Tell us about your crowdfunding successes and failures at firstname.lastname@example.org
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