Is Your Idea “R.I.P.E.” for Crowdfunding?
The lightbulb, the television, paved roads – our modern world is built on a foundation of good ideas that were realised, then popularised. More importantly, these ideas were funded to be made in the first place.
That is, no money means no innovation.
Fortunately, we live in the 21st century and the introduction of crowdfunding – in itself, a technology-aided innovation of traditional funding – has remarkably lowered the bar of entry for investments into promising start-ups and projects. This essentially means that everyone has a good chance of seeing their ideas funded through the power of the crowd.
However, we all know that not every single crowdfunding campaign is or will be a resounding success. In reality, only around 35% of all campaigns reach their goals, and only a fraction of that goes on to become successful businesses afterwards.
“Now, many factors influence campaign outcomes. There are times when a good idea gets botched by a disastrous campaign or by poor marketing. However, most other times, campaigns fail because the ideas that fuel them just aren’t good enough,” says Elans Dimitrijevs, CEO of TFG Crowd.
“In order to turn an idea into success, we need to know what makes an idea good in the first place.” Elans, TFG Crowd.
Below, Elans shares a surefire method of telling whether an idea is half-baked or, as he calls it, “R.I.P.E.” for crowdfunding success:
Good Ideas are Realistic
A majority of campaigns begin with a gut feeling that this or that particular idea is good. While this is as legitimate a start as any, too many believe that they could go off of that gut feeling and run with it without doing the research or checking in with the facts.
It’s always best to do market research before launching your campaign to see if your idea already exists on the market, or if there is an actual demand for it out there. Relying on research can also help you determine whether or not your objectives, expenses and investor rewards are within your campaign budget and target.
Good ideas are always realistic: they rely on research, on science, on facts. Sometimes, it can be challenging to tell a good idea apart from a bad one, and the only real way you can distinguish is by seeing which one has realistic expectations and which one comports better with reality.
They are Incredibly Interesting
Most of the time, people look to crowdfunding and see it as this alternative money source that will make their dreams come true. Nothing could be further from the truth. Crowdfunding is no different from traditional investment schemes in that you have to put in the work and you have to have a fun, fundable idea.
Many are encouraged to find that a niche audience finds their ideas fundable at the outset, only to find that only that niche is ultimately interested in supporting their projects. Most crowdfunding campaigns are only able to reach success with the help of multiple backers. Ask your friends, do small-scale surveys. If you find that the majority of people don’t find your idea interesting, it may as well be dead from the outset.
They are Problem-Solvers
Good ideas are not always about original or ground-breaking products or services in the market. Most of the time, they are all about turning something good into something better, or solving a problem that people have had for a long time.
Often, ideas are called ‘good’ because they produce social or economic goods that improve the lives of everybody from production to consumption. In other words, they produce value, which brings us to the last point:
Good Ideas Have Equitable Results
This is especially true for equity crowdfunding. At the end of the day, what you want is to create value for you and for your backers. You need to make their investment worth it, or it’s not equitable. A good amount of failed equity crowdfunding campaigns never took off simply because the returns are not attractive enough for the everyday investor. Use the flexibility and the low overhead costs afforded to you by crowdfunding to make your ROI more equitable for your potential backers.
TFGcrowd is where investments go to be success stories. If you want to learn more, visit us at https://tfgcrowd.com.