By Lizzie Weakley
Crowdfunding has become one of the best ways to achieve investment goals for an individual or startup. If it’s done properly, it can be successful. It might even go past your intended goal and reach a number you never thought achievable.
At the same time you bask in the success you also need to consider your post-crowdfunding tasks. Here’s a breakdown of what you should do after a successful crowdfunding campaign.
Thank everyone who donated
You can’t ignore all the individuals who donated to your crowdfunding campaign. They have to be thanked in one form or another. You might have to set it up via the level of donation.
Those at the lower levels might get a group thank you. Individuals that donate large sums to your crowdfunding campaign receive a personal email greeting and thanks. The largest donors may get a personalized letter sent to them via mail.
Make good on the incentives
The best way to crowdfund is to provide incentives for certain monetary levels. When your campaign is a success you must make good on those promises. If not, those who provided money may feel you were dishonest with them.
It’s best to have these incentives ready long before you start your crowdfunding campaign. Especially if it’s an ongoing situation. For example, if you crowdfund on Patreon you can get new subscribers at any time. If you don’t have the incentive ready for them, then they could withdraw their support. This is also why it is very important to know the company’s limits and make an accurate plan as to what incentives you can provide. Unforeseen obstacles can cause trouble, but planning for trouble can help you get everything done.
Keep you investors updated
Those who donate to a successful crowdfunding campaign tend not to be one-and-done individuals. They want to know how the project or business progresses over time. It increases confidence that their money was put to good use.
You can do this through a newsletter sent to the emails you collected during the campaign or you can update investors through the crowdfunding platform. Either way, don’t thank them and never let them know what happened. Even sharing small victories can go a long way to keeping the faith of those who have invested in your company.
Use the money for what it was intended for
Investors donate to crowdfunding campaigns because they like the individual or the products they want to create with the money. If that’s the case, don’t use the funds to go on a luxury vacation. That breaks the trust between you and those who gave you their hard-earned income. It can help to show what the even funds will be used for in each part of your campaign. Show how and why the money goes where it goes.
Use the given funds for what you mentioned in your campaign. Let everyone know that their donations led to the successful creation of the product or service and your business wouldn’t be what it is without them. Such transparency will help your crowdfunding, and your future business, succeed.
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Lizzie Weakley is a freelance writer from Columbus, Ohio. In her free time, she enjoys the outdoors and walks in the park with her husky, Snowball.
