by Skystar » Tue Jan 07, 2025 7:01 am
I included the following thoughts in an analysis I presented to a startup several months ago. Jessiec has included most of them in her excellent response above but I thought you might find something of interest in a slightly different pov.
1. Provides Validation - allows creators to gauge interest in their product before it hits the market. If the campaign reaches its funding goal, it’s proof that there’s demand for the product.
2. Audience Engagement - a successful campaign creates a community around the product. Backers often share feedback, ideas, and even become early ambassadors, spreading the word to their friends & networks.
3. Lowers Financial Risk - crowdfunding allows project leaders to fund production costs and reduce risks of overproducing an unproven product.
4. Marketing Awareness - crowdfunding platforms are also promotional tools. They expose a product to a large global audience, giving it visibility from the moment the campaign launches.
5. Media interest - successful campaigns often attract media attention, boosting brand awareness even further.
6. Early Feedback and Iteration - through interaction with backers, creators can receive feedback on the product's design, features, and usability. This helps fine-tune the product before mass production, making it more aligned with customer’s desires.
7. Proof of Concept for Investors - a successful crowdfunding campaign demonstrates to investors, wholesalers and distributors that there is real demand for the product.
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