Why do People Ever Give Money to Crowdfunding Campaigns

Why would people give money to someone they don’t know for a product that may not even exist yet?! Try to explain the concept of backing crowdfunding campaigns to people who are not related to the concept and they won’t get it the first time.

So… to have backers, you need to understand their mindset. Before you even begin asking people to back your campaign, you need to dive into understanding why people would choose to do so.

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. (If you’re wondering how many people you need, head here).

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. 

So, here is my take on five potential reasons why people choose to back crowdfunding campaigns:

WHY #1: The Excitement of a Cool, New Product:

Some people are just excited to see cool, new, and awesome products on crowdfunding. And not only tech products, but around all niches you’ll find passionate people wanting to know and own the latest creation out there.

Think about a makeup or gaming influencer. These are people who are excited to know what’s coming, what the indie creators are coming up with, and to share it with their communities. Same attitude for their followers.

In every niche, there are people who just like to be on the loop for the newest crowdfunding rewards.

WHY #2: A Better Solution to the Problem:

Maybe your product solves an existing problem better than another product already in the market. Simple as that.

Imagine all the options for cat litter self-cleaning systems are expensive or just not practical and your product came to change that. People who need a better solution to their cat litter needs will definitely be interested in your idea.

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. 

As a creator, you must make an effort to share your idea with your personal network of friends, family, and acquaintances. Not only because you don’t know who would back you to support you, but also because you don’t know who would be actually interested in your idea or knows someone in their own network who would.

Never underestimate the power of people already in your life. 

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. 

Again, the power of networks. Perhaps a person that got reached by your marketing strategy doesn’t want the product for themselves but know that it would make a great gift for someone else.

Everyone enjoys giving a great gift, and what better gift than an exclusive and new gadget a loved one would like?

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 crowdfunding campaigns sometimes.

Consider this when you’re planning the places where you’ll be promoting your campaign.

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 are huge. This allows potential backers to connect with you and create a bond that makes them want to invest in your story. Don’t overcomplicate your launch.

Whatever the reason is for your backers to support your campaign, it depends on how well you communicate your message and connect with them.

Check how to get on the backer mindset and create a campaign that will get fully funded here.

Please share this article on LinkedIn if you liked it – would mean a lot to me. And since you’re already there, check the Facebook group for crowdfunding creators!