8 Tips for Successful Crowdfunding

Slava Rubin, founder and CEO of crowdfunding site IndieGoGo has these tips for inventors looking to seek funding from the Internet crowd:

• • Have a personal, engaging video. Donors give more when they see a human explaining why they’re passionate about what they’re trying to accomplish. A good video campaign will earn 122% more than a non-video campaign.
  • Set realistic goals. Do the math and figure out exactly what you need and why.
  • Set realistic deadlines – 30-70 days is optimum.
  • Have some incentives/rewards for folks who are funding. Something unique, not just something you can get anywhere.
  • Be proactive. Send emails and post social media updates so donors and potential donors know how you’re progressing. If you have 13 or more updates, at least one a week, you’ll raise 65% more money.
  • Reach out to influencers. Use Twitter hash tags. Access the blogosphere and corporate posters.
  • Find an audience that cares. No one funds anything if they don’t know who you are. You need 30-40% from your inner circle initially.
  • Be honest. If you’re doing an IMAX movie and you’re asking for $500, that’s not an honest goal. Conversely, don’t ask for millions if you’re starting a T-shirt company.