Finally, we get to the one, perhaps the most discussed topic among startups and growing business – financing, or where to get the money. Specifically, today we would like to talk about not a quite standard method (especially for mobile development) – about crowdfunding. Some of our clients in their time have wondered about crowdfunding an app too. Well, we hope that we will be able to lift the veil of secrecy and show that crowdfunding a startup app is not such a difficult task, as many might think.
No, we do not want to say that this method of raising funds is easy and fast, and can help anyone in everything. It may even be the opposite. But if you’re a young team of developers with a variety of exciting and revolutionary ideas – you can get everything because the attraction of investments is quite painful for many campaigns at the first stage.
For whom this article would be useful? Everyone who is planning to or have already engaged in business, creating or expanding their company. Perhaps you have wondered about the beginning of the campaign to raise funds, but were afraid to do it, or you have a shortage of information? Well, in this article we will touch on some issues related to this topic.
And now we are going to a fascinating journey into the world of questions “how to get your app crowdfunded”, which is full of wonders and non-standard solutions. So sit back and relax – we begin!
Read also: How much does it cost to make an app
What is “Crowdfunding”
In the broadest sense, crowdfunding is a mechanism to attract funding from third parties (or the masses) in order to build and release your product or for business support, culture, assistance to the needy, and much more.
What are the positive aspects?
This type of financing allows you to find resources with the little or even no bank participation at all, as a result, you can save some costs from bank expenses and from not hiring qualified personnel. The whole process becomes easier because not everyone can boast of economic education as a high knowledge in this area;
Support of the target audience. This point has a weighty significance because on many app funding platforms proceeds go directly from the people interested in your project. Those,if you create an ultramodern device or much needed in everyday life application and people like it, you have a chance to collect the necessary sum of money.
Available fundraising platforms
To avoid accusations of bias, we will publish a short list of the services on which you can try to collect the money needed to carry out your ideas.
In this article, we will build our recommendations on such platform as a Kickstarter, because this service is one of the first popular and probably the reference resource for the collecting money. The rest of the platforms have their own specific features, but Kickstarter is a middle ground between all the variety.
How to crowdfund an app
Well, you have decided on a bold move and you want to raise money, and you now have only one question on mind: “how to get an app funded?”! Let us talk a little bit about how to make your project successful in fundraising.
1. Make the right choice. That is, to determine right the category which would suit your project well. We believe that once you read this, the choice of the category was made, right?
Note: there are many different categories on the Kickstarter that expand over time and, depending on demand, grow. Over the past couple years have been rapidly evolving category of, “entertaining orientation” – music, movies, and games. But who said that other projects were less successful?
2. Create a “step-by-step plan”. Yes, we understand that the plan writing is the same step as “think up and justify the idea,” but! Do not forget, if you want to get an app funded – you have to work hard.
Read also: How to market an app
When you create (or at least designing) application you have already done some planning, because you do not just randomly undertook to write different modules, without thinking of the general structure of the program? In the same way like you rightly came to the choice of development tools. It all takes place in a similar way.
Planning – something purely individual, because the structural scheme will depend on the type and the “bulk” of your project. It is worth remembering that you need to consider to take into account not only technical but also time-economical aspects (such as time accounting to create\modificate your product, funds searching, planned income, and expenses).
Note: Keep in mind the fact that the sponsors prefer projects that are at (least) the development stage or when there is a working prototype. In this case, your chances are increased many times over.
3. Be open. Interact with your audience, represent yourself and do not be afraid of difficulties, in the end, we are all human and should understand each other. Start collecting all your materials and analyze them. Now repeat everything again and put away all other things.
It’s where the real fun begins – presentation and advertising. On fundraising platforms a lot of good (and barely not) projects, unfortunately lost, many of them lacking one thing – proper feed. You have to understand that no matter how is your idea unique and useful, without a proper presentation it’s hard to stand out. No one is interested in bare facts, blueprints, and Technical Specifications only. All this is necessary to emphasize with the right “design” and explanations.
Find or hire interesting bloggers to help you in writing articles which you will post on forums and blogs. Record small but logical and clear video with your product features and your idea of how it can change the world. Do not forget about the team, because people give their money to the lively and purposeful team, rather than a purely technical product. Make a couple presentations and visual materials – everything should be clear and fun.
4. Work hard. To crowdfund your app you need always work hard because fundraising – is only the first step on the path to success and implementation of the project. Many pitfalls can wait for you in the process of working on a project ahead and in wake. After all, you planning to sell your product, aren’t you? But this conversation has a different theme.
What should be added – offer rewards. Many of the projects implemented “money – development – product” scheme. Notably, you collecting money, making necessary research then producing the product
In order to motivate people to leave large donations, you can come up with a stepped reward system: larger the amount, greater the gift.
Read also: Pre-launch mobile app marketing strategy
The world knows a lot of examples of successful projects that have been born thanks to crowdfunding. Some of them managed to collect nearly $ 10 million – not every large company is able to finance a new project in such way. In our age of the internet and digital technology popularization, global trends leads to the fact that funding may soon be available to everyone because for many people today is nothing to invest $ 50 in a project that might turn the world upside down. Every year crowdfunding will melt more and more widespread phenomenon – maybe it’s time to try – no risk, no gain.