Exploring the World of Crowdfunding

Your crowdfunding journey is all dependent on having the right market strategy and an engaged crowd behind the product.

Getting your market strategy right is key to ensuring that you are ready to launch.

Keep reading to learn more about the importance of market research and calculating your crowdfunding feasibility.

Validating your Crowdfunding Strategy
If you’re thinking about crowdfunding, crowdfunding itself is not a tool to validate your campaign. 

You should avoid sinking valuable spend into your campaign before you know that you are targeting the right audience and using the right messages.

A market validation phase at the start of a product journey is a great way to ensure that there is interest out there and that it aligns with…

• who you think your audience is
• relevant crowdfunding platform demographics

For example, you would likely not receive a lot of interest for a product designed for 50+ women on Kickstarter with the majority of their audience being younger male backers.

Whether you are crowdfunding a smart watch or an ironing board, it is essential to validate and research to ensure that you will have a reasonable return on investment.

If your cost per lead is too high or your audience is too small, you may struggle on a crowdfunding platform and an alternative route to market might be more viable.

At least a third of your desired number of backers should be in your database before you launch. A further third should come from your platform itself and the final third from your targeted campaign advertising and influencer outreach.

Market Research Parameters

In order to get a good gauge of your industry, focus on the following:

• Similar competitor strategies
• Popularity by location
• Market categories and crossovers
• Industry benchmarks
• Audience demographics
• Relevant keywords, hashtags and trends

The value of market research for your strategy is huge, giving you initial indication of your market and potential for success.

Speak with Us

Here at BrandRefinery, we are a UK-based Crowdfunding Agency who work on all things product launch. Crowdfunding is a fantastic way to build up an engaged and focused following of users who love what you do and want to follow your journey. 

As an experienced crowdfunding consultancy, we are aware that every product is different and so is every crowdfunding platform. 

We have worked on a number of different crowdfunding campaigns over the years, in both equity and reward-based crowdfunding. 

We recommend a validation phase to ensure that your product is viable before investing time and money in the wrong channels.

If you would like some support in your startup market validation, we are more than happy to help. Check out our portfolio of previous work here.