Before you even begin asking people to back your campaign, you need to dive into understanding why people would choose to do so. Why would people give money to someone they don’t know for a product that may not even exist yet?! You need to get in the mind of the people who are going to, inevitably, help you achieve your dreams before you start asking things of them.
In this episode, Nalin explains five potential reasons why people choose to back projects. If you’re an entrepreneur you can’t afford not to listen to this one!
Keep scrolling for a further breakdown of the podcast and helpful links.
[1:39]: The “What” and “Why” This Podcast is Critical to Your Crowdfunding Campaign:
The ability to see things from the perspective of the backer gives you leverage in your campaign to be seen as credible and increases the likelihood of people supporting you and your product.
[3:45]: WHY #1: The Excitement of a Cool, New Product:
Some people are just excited to see cool, new, and awesome products on crowdfunding.
[8:13]: WHY #2: A Better Solution to the Problem:
Maybe your product solves an existing problem better than another product already in the market.
[10:56]: WHY #3: Friends & Family Support System:
Some people back projects because a friend or family member is the one who created the product and they simply want to support them.
[14:29]: WHY #4: The Art of Gift Giving:
People love to give and receive gifts. Backing a new product and giving that as a gift not only helps a campaign but is also cool to give/receive in the future.
[16:12]: WHY #5: Being A Part of Something Bigger Than Themselves:
Everyone wants to be a part of something bigger than themselves. Sometimes it’s that simple desire that makes people back on crowdfunding. The idea of being behind the start of something like Peloton or Oculus would be really amazing, wouldn’t it? That’s enough of a reason to drive people to campaigns sometimes.
[17:17]: The Importance of Sharing Your Entrepreneurial Story:
The easiest thing you, the entrepreneur, can do is share your story. The rewards you reap from doing so is huge. This allows potential backers to connect with you and create a bond that makes them want to invest in your story.
[18:06]: Recap: The Five Categories:
Going over the five reasons people back crowdfunding one last time.
Mon, 7/20 12:40AM • 20:18
product, crowdfunding, campaign, backer, project, problem, people, contributing, solve, kickstarter, indiegogo, life, talk, crowdfunding campaigns, crush, launch, leverage, entrepreneur, backed, founding
This is the crush crowdfunding podcast, the number one place for people who want to launch on Kickstarter and Indiegogo. My name is Nalin and I invite you to join me for tips, hacks and insights to get you launched and fully funded.
Hi everyone and welcome to another session of The Crush Crowdfunding Podcast. I'm really excited to have you here today to talk to you about crowdfunding and how you can absolutely crush your goals on Kickstarter and Indiegogo.
Thank you so much for being here. I'm so excited to have you. And, I'm super super-duper psyched to dive into the topic that we're going to discuss today. Today, we're going to look at things from the backer's perspective. So, a little sneak peek of what we're going to be talking about is: the five different reasons why backers decide to back crowdfunding. We will discuss why backers decide to come to crowdfunding on Kickstarter or Indiegogo and actually spend money on projects that (1) don't even exist on the market yet and (2) on campaigns and campaigners that they might not even know. Your backer might be from a completely different part of the country or across the world and they're contributing to help make your idea a reality. You’ve never met them and the project doesn’t even exist yet! Today we're going to kind of take a look at things from the backer’s side. So let's get started.
As I mentioned, there are actually five reasons why people come to crowdfunding platforms like Kickstarter and Indiegogo and contribute money to projects. The main reason we want to talk about why people choose to back projects on crowdfunding platforms is so that you, as the entrepreneur and person in charge of the vision strategy of this entire crowdfunding project, can see things from the perspective of the backer. This way you’ll be able to make sure that your campaign is able to leverage all of these points to make your campaign seem attractive and really credible for people who are going to be contributing money for your campaign. We hope to do this by helping you gain an understanding of the mindset behind backers by understanding the psychology behind why people back projects and actually spend money on Kickstarter and Indiegogo. You'll be able to create an enticing campaign that tackles all five of these points which will convince people who come across your campaign organically on Kickstarter and Indiegogo to back you.
People will look at your campaign and think- “Wow, this campaign is blowing it out of the water! There's no way that I can't back this project.” That's why we're going through things from the backer’s perspective today. We’re diving into the understanding of why backer’s invest in crowdfunding so that you, as the creator, can fully understand why people back and spend money on crowdfunding platforms, as well as, understand how you can create a campaign that hits all these emotional and rational points so that people will want to back and support your campaign. So, let's dig right in!
The Excitement of a Cool, New Product
The first reason that people back on crowdfunding campaigns is because they're just excited to see cool, new, awesome products to crowdfund. They're excited to see cool and new products coming to the market. The people who are back projects on crowdfunding surf the internet and websites like Kickstarter and Indiegogo just to discover awesome new ideas, new products and new ways to solve existing problems. They're looking for different projects, different ideas, different products that tackle existing problems in a different and cool way. Sure, there's already canoes out in the world. Sure, there are already stand-up paddleboards out in the world. All this already exists. But, on crowdfunding you see canoes and paddle boards that are foldable like origami. Versions of these paddle boards that are made from futuristic materials that make it lightweight and extremely compact so you can put everything in the trunk of your car and head on out to the lake or beach. It’s a new and novel way to solve an existing problem. It's a new way to look at things that are already on the market.
Another example is drones. Drones were huge a few years back. Why did people come and back drones on crowdfunding even though there were tons of them out in the market already? Well, all these drones that were available on crowdfunding did a ton of cool new things. It was either the lightest drone, the thinnest drone, or a drone with the longest battery life. There's so many cool things that these drones were able to do that didn't exist on the market before. The people who surfed Kickstarter and Indiegogo were excited to see cool, new, and awesome products coming to the market that were the future market leaders. They were there and got behind the product before everyone else in the market.
But, 99% of the market has access to it. So with this information, what can you do? As a creator, founder, and entrepreneur you can take this knowledge that people are interested in and make sure that your product, story, and image are able to express that the information you provide (the gifts, the videos, the short little copy that you have on your page) is able to express the main idea. You have to be able to say - “Hey, we know this has been done before but guess what? - We have this incredible new way to tackle this issue. We have an incredible, new, more efficient way to solve your problem.” Even if it comes to things like board games like Apples to Apples. Apples to Apples has been around forever but when Cards Against Humanity came onto Kickstarter it took the idea of Apples to Apples, right? The fact that someone puts down a card and everybody puts in another card and someone chooses a winning answer - that's Apples to Apples! They took something that was tried and true in the market and put a different spin on to it with Cards Against Humanity. It's basically the classic card game of Apples to Apples but with a touch of dark humor. That dark humor was the “cool factor.” The reason people wanted to get it was because it's just a cool new way to spin a tried and true classic product.
So, I encourage you, when you're looking at your product ask the following questions: What does this remind you of? What is this similar to? How can you relate this to something people have already seen in their lives? How can you show the additional value of your product to these people? If it's a place to store your vitamins, how is your product better than anything else someone can find at GNC or Vitamin Shoppe? How is what you have able to convince someone to actually buy the product? How is it cooler? How is it more awesome? How does it better solve the problem than everything else that's on the market? That is my challenge to you. That is how you're going to leverage why backers back campaigns on crowdfunding and get them to back your campaign.
A Better Solution to the Problem
The second reason people back products on crowdfunding campaigns is because they found that your product solves their problem much better than anything else out there in the market. That is super key here. The reason that’s important is because crowdfunding is really about two things: first, your product. The fact that you know exactly what your product is, what your product does, and what your product solves. And, second, it's about the person, the community, the people, the audience behind the product. Those two things really come in to support this particular point because by having backers see that your product can solve their problem in a more effective way than anything else out there you'll be able to catapult yourself to the top of their awareness. Being at the forefront of their mind will lead them to want to actually buy and contribute money to your product.
People come to crowdfunding campaigns and platforms looking for solutions or looking for something cool. Maybe you figured out a new way to make headphones. You know all the headphones that people use are wireless earbuds. Maybe you figured out a way for those wireless earbuds to actually stay in your ears and not fall out when you're running or bending down or doing this or that. You figured out a way to solve that core problem. That's what people are looking for. So, the best way to leverage this knowledge as a crowdfunder is to really understand what problem your product solves and be able to clearly communicate it in three easy steps. What can your product do and how can it solve that problem?
If you can't explain what problem your product solves in three easy steps - it's too complicated.
People won't have the bandwidth to comprehend what you're trying to say. Because you've been working on this product for years or months, you know everything inside and out about this product. You have to convince them in a very short time that this product is exactly what they need to solve a problem that they've always had; that is your job as an entrepreneur. This is how you can leverage the fact that people come to crowdfunding platforms to find solutions for their problems. This is how you can leverage that to make sure that people want to back your project. You want to show them exactly what it is, how it solves the problem, and why this matters to them.
Friends & Family Support System
The third reason that people back projects on crowdfunding is because a friend or family member has launched a campaign. This is honestly one of the biggest methods and one of the best strategies that you can utilize as a campaigner. Leveraging this one particular point is huge. As I've mentioned before, 90% of the work in crowdfunding happens before you even press the launch button. On launch day, if you haven't done 90% of the work required beforehand then you're going to fall flat. There isn’t going to be anybody coming to your page or to your campaign and contributing money making that funding goal needle move up and up and up.
One core thing that you, as an entrepreneur and creator, can control is your own personal networks - your friends, your family, your acquaintances. That network is the only thing that you can control and it's honestly your job to leverage these personal relationships in order to help them help you. Write to a lot of people who you have relationships with because chances are they will want to help you out. You would probably want to help out your friend and your family whenever they need it too, right? It’s not too much to reach out and say- “Hey, this is a project I've been working on for a long time. It’s kind of my life's work and I was wondering if you would be able to support me on the first day? Would you be able to commit to supporting $5, $10, or $100 on the first day so that I will be able to take this product and meet a goal? Would you help me bring this product to life and solve people’s problems all around the world and bring to life a project that has ramifications that are much larger than myself!?”
As an entrepreneur, that's what you can do. You can make sure to leverage your personal networks be it - your friends, your families, your acquaintances, or maybe even the person that you haven't talked to since freshman year of high school. One of these people might have the same problem that you're looking to solve and your product is solving it. However, if you're afraid to reach out and talk to them, they're not going to come and support you. They're not going to know that you exist. Noone is going to know this is around until you've had to spend millions of dollars in advertising.
When it comes to a crowdfunding campaign I absolutely recommend you to reach out to people in your networks and do it early. Tell them what you're working on. Tell them your mission. Tell them your story. Tell them why you're doing this. Tell them that you want to make a difference in the world through the product that you're launching. I guarantee you that so many people will want to be involved. I know that to be true because that, right there, is a big reason why people contribute their money; because their friend or their family member is launching on crowdfunding and they just want to be there to support them and help them reach their dreams.
As someone famous once said (I'm not sure exactly who but I'm sure you’ve heard it before) - You miss 100% the shots you don't take. If you don't go out and ask people, you've already missed those opportunities. You will never know if it would have come to life or not. If you just went out to make the ask at least you'll know that you've done everything that you can in your power to get people to come and help support you on your campaign. This network of friends and family alone will start you off on the right foot when it comes to the next 30 to 60 days of your campaign.
The Art of Gift Giving
The fourth reason why people back on crowdfunding is because they want to give that cool thing to someone else they know - a friend or a family member. People just love giving and receiving gifts. What you can do is make sure that there are ways for them to provide this as a gift even before the product comes to life. For example, if you're launching a product close to Christmas, holidays, birthdays or something else celebratory make sure that you're able to provide people with something like a certificate that says - “Hey, Merry Christmas! Here's a product that I've gotten for you. It will arrive in three months.” Or maybe something like - “Here's a product I backed for you for your birthday. It will arrive in the next six months.”
So remember, people really like giving gifts so you want to be able to include this type of language and conversation for people. Something to keep in mind is that most crowdfunding consists of men. About 70% of Kickstarter and Indiegogo are men between the ages 25 to 35. If you're trying to launch a product for women it would be wise to actually market the product as a great gift for male friends, boyfriends, husbands, or what have you. This way males can still contribute to the campaign and offer this as a gift. There's always different ways to spin a product; just make sure that your product makes sense to the potential backer.
Being Apart of Something Bigger Than Themselves
The last reason why people like backing crowdfunding campaigns is because they just want to be part of something that's bigger than themselves. People want to be part of the founding story of a company, a product; the story of the next billion dollar company.
Imagine the people who backed Oculus, the VR goggles on Kickstarter! They were actually one of the people who helped make Oculus come to life and then Facebook came and gobbled them up for billions of dollars. Those people who backed the project were part of that founding story. How cool is that?! Another example is the Peloton. The people who backed Peloton (that’s the in-home bike with live video classes) were a part of building what it is today. How cool do you think that is now!? Because, right now they've actually IPOed in the stock market. They're worth millions of dollars now. It would be so cool to be in the founding story of a product like that! So, that's one more reason why people want to back on crowdfunding. They just want to be part of something bigger than themselves.
One of the easiest things you can do as a founder is to share your story. Share why you're doing what you're doing or why you got into making the product. You can also share why you became an entrepreneur, what you hope to do, why you dream to do what you’re working towards, what's happening behind the scenes, how you are figuring out which type of material to use for your product between material A versus material B, and what is actually going on. Maybe even tell them what your office looks like. There's so many things that you can do and say that helps make sure people feel involved in your project and involved in your journey because some people just want to be included in a story that is bigger than themselves. They want to be a part of a company’s journey that is larger than their own lives.
Those are the five reasons why people back on crowdfunding. One - because there are cool projects and they're really excited about backing something cool; two - the product solves a problem that they can't find solutions for anywhere else; three - their friends and family with someone who's actually launching the project on crowdfunding; four - they want to give this product to someone else; and five - they really want to be part of a founding story that is much larger than themselves and much bigger than their own lives.
So, with those things five categories and five reasons in mind, there are so many ways that you can make sure that your project hits all of these five reasons people back projects on crowdfunding. Through knowing these you can make sure that your project is presented in the most effective way for people to come and actually see your page. They’ll be inclined to say - “Wow, that's a cool product,” “Wow, that solves a problem,” “Wow, they're my friend/family and I want to back them,” “Wow, I want to give this gift to someone else,” and “This is such a cool story and I want to be part of this person's founding story and help them get to the next stage of their life.” There's so many things you as a founder, creator, and entrepreneur can do for your crowdfunding campaign. Just make sure to hit these five points!
Thank you for being with me here today. If you need a crowdfunding expert, feel free to get in touch. You can get started by heading to crushcrowdfunding.com. Lastly, I would be really grateful if you could leave a review for the podcast because it will help others who want to learn about crowdfunding more easily find out about the podcast. Thank you so much for being here with me, and for subscribing to the podcast and continuing to listen and be here with me to go on this journey to crowdfund your product and your idea.
I will see you guys in the next session.
Thanks for listening to the crush crowdfunding podcast at crushcrowdfunding.com. Tune in at the same time next week for more ways to crush your launch.
Sign up to receive email updates
Enter your name and email address below and I'll send you periodic updates about the podcast.