Crowdfunding,  is one of the most popular ways to fund your project, small business or creative idea. Sites like RocketHub, Kickstarter and Indiegogo are sprouting up fast, but how can larger, enterprises use them to further their resources?

Increasingly big businesses use social media as a way to create a sense of community around their brand. Crowdfunding is quickly becoming an effective way for small businesses and enterprise level initiatives, to generate community involvement. Why? Quite simply it’s about the effective use of your most valuable and often overlooked asset; everyday people.

Why Should Large Companies Crowdfund?

1) Get It Out There: For starters, it’s an excellent way create a buzz around your product or service. If people are genuinely interested in what you’re selling.they will donate their time to your business. The good news, is that most online social software tools do not require financial commitment. They are put in place as a way to generate valuable data via platforms like Kickstarter and Indiegogo in order to get a better idea of what your audiences expect. It’s important to understand whether your concept is among the products and services that motivate people to take action. 

2) Pay It Forward: Your crowdfunding campaign supporters will get an exclusive opportunity to interrupt firsthand with your product or service. Not only will you generate advanced financial returns and encourage participants to become eager guinea pigs willing to test out your concept but you will also encourage potential funders to access special features that are otherwise unavailable. This is bound to keep investors happy and willing to spread the word about your newest invention.

3) Keep Them Entertained: Don’t forget to keep the momentum going. Both existing and prospective clients enjoy being acknowledged and praised for their efforts. One way to do that, is to frequently update them about the status of your project. You can also provide occasional previews of upcoming features and discussions related to your product. What you’re doing is asking people to opt-in and continue spreading the news. Some great examples of tapping into your community include BarclayCard and U-Haul Investors Club. 

4) Share Your Successes: People love knowing that they’ve contributed to something larger than themselves. Share your successes, talk about your failures and show your supporters the results you’ve been able to achieve as part of their contribution.

Crowdfunding is for everyone regardless of size or experience. When it comes to building a business community, it’s rarely just about cash flow. Enterprises often choose to do it in order to test market viability, as a way to garner support and secure the public’s commitment to the product or service and lastly and most importantly, to generate ongoing engagement with clients through shared successes.

Read more on the advantages crowdfunding brings to enterprises or visit us on twiiter @wizof_biz for more valuable tips and advice.

Mind Your Business,

The WizOf.Biz team.