Showing and telling are both essential elements in any rewards-based crowdfunding campaign. Nevertheless, without the show, you’ll never get to the tell — let alone the sell.
Crowdfunding is an excellent way for entrepreneurs to test the concept of their product or service and determine market need (or lack thereof). Rewards-based crowdfunding is a great way to get the upfront capital you need while providing backers with a unique return on their investment in the form of rewards, like a physical product.
While rewards-based crowdfunding isn’t the be-all, end-all of fundraising methods, it’s one of the simplest and cheapest ways to raise capital for your new business. However, not every campaign is guaranteed to be a success.
In fact, about one of every three crowdfunding campaigns is successful. Why? One reason is poor planning. Too many entrepreneurs set up a basic crowdfunding page and wait.