As with anything, there are pros and cons to doing just about anything and everything. I know some people find the prospect of selling a product before it’s even a tangible thing, slightly daunting, but there are a lot of pros as to why you should consider doing so if you haven’t played with the idea already.
Validating the demand for your product, by obtaining money from a large pool of people, can make you more confident long term in delivering the promise you have essentially preached. Consider the last time you bought a concert ticket, months in advance from when the actual event was going to take place. Whilst you hadn’t perhaps taken too much of your purchase into consideration, you will have unsuspectingly been validating the market for the concert, despite the fact you wouldn’t be going for a good nine months. If not enough people buy tickets, that gives event organisers the freedom to either cancel the event or move it to a smaller venue; they are mitigating their risk up front- which is exactly what you should be doing too.
So we have devised 5 of our top reasons why you should consider crowdfunding
- Validating your idea
Often, we can get carried away with our ideas. It’s very easy to start thinking of life after the idea has gone into orbit as opposed to the hard graft at the beginning. So instead of thinking of your new diet of champagne and caviar on the reg, start looking at how many people will ‘buy’ into your idea before it’s even a tangible product yet. If people are willing to do this, then you know you’ve actually got something to work with; there is demand.
- Build a Tribe
If people are willing to buy into your idea then you have a golden opportunity to really connect with the people who believe in your vision. These are the people who will support you, rally around you and will tell more people about just what you are trying to do. They want it to work and you need them.
- Low Financial Risk
Whilst it would be marvellous to have a couple million tucked away for a rainy day, that unfortunately isn’t so for the vast majority of us. It takes a considerable amount of time and money to launch a new product into the marketplace. Crowdfunding offers a lifeline to those not wanting to use all their life savings or get a bank loan and if people don’t buy into the idea then not only do you not have a truck load of unsellable junk but you still have a bank account that isn’t totally empty.
- Time Is Ticking
You have a funding goal that has to be met within a certain time frame which creates a sense of urgency that is in fact needed to spur people into action. People are less likely to dither on whether to invest into your idea if they think they are running against the clock.
- Crowdsourced Development
You have your audience now listen to their feedback on your product. This community of people are invested financially into your product and depending on your brand story, some even emotionally so. Therefore, these individuals want to support you and give the most constructive feedback possible to you in order for your product to be the ultimate success.
Crowdfunding isn’t for everyone, but it can open a lot of doors. it can give you some clarity that your vision for your product isn’t just held by you alone and you move forward amongst a community of people who have allowed you to make your idea into a reality.