Crowdfunding is one of the most effective ways of getting needed funding for startup projects. Popular crowdfunding sites such as Kickstarter and Indiegogo help entrepreneurs generate capital by allowing users to donate to the planned venture.
Kickstarter has reportedly funded more than 117,000 startups backed by the contributions of an estimated 12 million people. These platforms receive thousands of startup campaigns every month. Each campaign competes for funding from users. So, how can you make your campaign stand out from the rest of the competition?
The power of video content
According to Kickstarter, 33 percent of campaigns are successfully funded without videos. But the percentage increases to 66 percent when the campaign includes an explainer video. That’s a significant success rate of 50 percent.
Indiegogo’s statistics on the use of video mirror the same conclusion. Campaigns that include explainer videos generate 114 percent more funding than campaigns without videos.
There shouldn’t be any surprise to any of these data because the use of videos for marketing and promotional purposes has been proven to have many quantifiable benefits:
- Videos transmit a large amount of information in a short amount of time
- 92 percent of B2B customers watch videos
- Conversion rates increase by 80 percent with the inclusion of videos
- 30 second video ads have a high 88.3 percent completion rate
- 81 percent of executives use videos as part of their online marketing strategy
A crowdfunding campaign is essentially an appeal to potential investors to place their hard-earned money on your startup over others. Videos are effective because they use sight and sound to deliver content in a way that emotionally connects with the viewer in a short amount of time.
But not just any video will do. It should capture the attention of a viewer so he or she wants to see the whole video. A video has to be intriguing, but still get the message across. It should be worthy to win any crowdfunding video contest and have a viral potential. When it comes to a crowdfunding video, its content must compel viewers to respond to your desired call-to-action: investing.
Here are five smart ways to create a great crowdfunding video that people actually want to watch.
1. Identify your brand and positioning strategy.
Before anything else, you should have an idea of how you want your product or services perceived by potential investors. Investors want to know:
- What is it all about?
- Who are the end users?
- How will it address the needs of the target market?
- What are the product or service differentiators?
- What is its unique selling proposition, or USP?
- Why should the market patronize it?
- Why should we invest in it?
The answers to these questions determine your brand and how you plan to position it in the market. Your branding and positioning strategy will give viewers an idea of your direction.
Related: A Successful Crowdfunding Campaign Needs a Video. Here’s What It Should Look Like.
Without that branding strategy, investors may view your venture as…