5 Things You Should Know About Launching Your Product with Crowdfunding
Crowdfunding is a lucrative way to finance a new product without shelling out a fortune from your pocket. Startups and established institutions alike are launching products with crowdfunding to generate no-risk profits and acquire customers.
This is not our first rodeo, as we have run 5 of the top 16 most-funded crowdfunding campaigns in Indiegogo history. As experts in the crowdfunding field, we share some insights into why crowdfunding may benefit your next product launch.
- Gain visibility with a reputable platform.
- Kickstarter and Indiegogo attract millions of visitors every month. Backers and creators are proactive in supporting this platform due to their experience. According to Statista, over 6.3 million people had backed more than one project on a crowdfunding site. Meaning individuals who are familiar with this platform are most likely to pledge another project again. The cost per acquisition of customer is seen to be very minimal compared to traditional CPC campaigns. The conversion rate on crowdfunding platforms is notably higher than other mediums such as e-commerce.
- Gather consumer feedback.
- Formulate the best outcome with guidance from your consumers. The data received from the pre-launch campaign will provide valuable insights on how the product or positioning can be refined. During the launch phase, it is natural to receive inquiries on your product that will spark an idea to improve your offer further.
- Use pre-orders to get the right inventory.
- Get a better prediction of your inventory. This removes the need to stock up as you’ll have a set amount of what is required to be produced. This data will also provide insight to institutions on how to structure their post-campaign system.
- Upsell more add-ons.
- Crowdfunding platforms allow creators to include additional accessories to enhance the consumer experience. If you’re planning to test out which accessories would best complement your main product, this would be a great avenue to capitalize on.
- Capitalize with venture capital fundraising.
- Continue to expand your business through other mediums of funding. A great example would be our client, Olive Union, who secured $7M in Series B funding after their massively successful crowdfunding campaign. Your crowdfunding campaign results may serve as a portfolio for VCs to discover your innovation and consider investing in it.
Ready to start your journey to crowdfunding success? Submit your new project application with us and we’ll unlock data-driven insights to formulate your best crowdfunding campaign.