Many well-established brands have access to R&D and production capital, market research and a vast network of expert advisors, so the idea of creating a crowdfunding campaign seems like an unnecessary step. What they’re missing is that crowdfunding is as much a marketing engine as it is a source of development capital.
Crowdfunding (Kickstarter, Indiegogo, private pre-order setups) has become a common way for entrepreneurs to float their ideas for the world for support. If the idea has merit, it gets funded. If the idea falls short, no funding. That’s how it works, right? Nope.
Everyone knows someone in their personal or professional circle who was or is incredibly talented, but can never seem to get the work or recognition required to hit their full potential. Same thing with crowdfunding: it’s unrealistic to think that a great idea will automatically succeed on its own merits.
What separates a massive success from a total flop in crowdfunding is the marketing, not the idea.
This is bad news for solo inventors who are passionate about their invention, but don’t know where to begin. This is great news for brands that have a marketing story to tell, and the means to do it.
But everyone – small and large – can activate a hungry marketplace, grow awareness of their brand, provide a time-sensitive focus to their marketing efforts, expand their directly-reachable audience and do so in an extremely social media-friendly environment.
This is why everyone – including established brands – can benefit from exploring the crowdfunding model. It’s about engagement and awareness that goes far beyond revenue.