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How to Make Your Crowdfunding Go Viral? Growthink Reveal the 4 Keys to Crowdfunding Success

  (June 01, 2012)

Los Angeles, CA (PRWEB) June 01, 2012

The best product or service doesn't always win; usually it's the company who best markets their product or service that wins, according to Dave Lavinsky, co-founder and President of Growthink Inc., a leading entrepreneurial consulting firm who has helped thousands of entrepreneurs build successful business.

With the recent approval of the JOBS act by Congress, more and more entrepreneurs are looking to crowdfunding as a viable funding potion.

"Likewise, it's often not the best companies (i.e., with the best team or product/service) who successfully raise crowdfunding dollars. Rather, it's the companies who most effectively market their Crowd Financing raise to others who succeed," said Lavinsky.


So how do entrepreneurs use crowdfunding raise to get many people to fund them?

To answer this, Dave Lavinsky has revealed his 4 P's of marketing: Product, Price, Place and Promotions.

1. Product

"You always need the right product to get sales," says Lavinsky. "In the case of crowdfunding, your 'product' is 1) your company (what you are building) and 2) what your offer is to those who fund you."

Lavinsky advises business owners to make their offer compelling and creative.

"Some entrepreneurs have given crowdfunders cool rewards such as invites to attend their launch party, public acknowledgements to them on their websites, and some have even named products after top crowdfunders," he said.

2. Price

According to Lavinsky, "People will obviously be more prone to write you a $50 funding check today for a promise to ship you a $100 product later versus requiring a $75 payment today."

3. Place

"Place refers to where you sell your product. In the case of crowdfunding, there are several 'places' or crowdfunding platforms you can use. Three of my favorites are Kickstarter.com, RocketHub.com, and IndieGogo.com," said Lavinsky.

4. Promotions

"Here's where it starts to get really exciting," said Lavinsky. "Promotions are how you tell others about your crowdfunding raise so they fund you."

Whilst the easiest group to tell and convince about funding are friends, families and colleagues, Lavinsky believes that true crowdfunding success comes when thousands of complete strangers get to hear about what the company is doing and thus agree to provide funding.

One such approach that Lavinsky mentions is the use of social network sites like Twitter, Facebook and YouTube, as well as email and a website.

"But social networking sites are merely mediums with which to share information. The key is to have information that's worthy of being shared," he said.

So, what information is worthy of being shared? And what information do people share with others?

The answer is "viral" information, according to Lavinsky. Such information is defined as that which people readily pass to their friends and colleagues.

Lavinsky has highlighted a number of famous examples of viral information used by businesses:

  • Viral Offers: "Groupon has grown quickly and to a massive size by offering viral offers; offers that are so appealing that people spread them to others who might be able to use them."
  • Viral Unique Concept: "A few years back, Alex Tew created Million Dollar Homepage, a website on which he sold one million pixels for $1 per pixel. It was an extremely unique concept and people started talking about it and purchasing pixels. Alex generated over a million dollars from the venture."
  • Viral Cool: "The manufacturer of Blendtec blenders made a series of videos called "Will it blend?" Its videos test its blender chopping up various products including an iPad (over 13 million views), an iPhone (over 10 million views), a glow stick (over 8 million views), an iPod (over 5 million views), marbles (over 5 million views). It has also created videos blending Wii remotes, rake handles and more. Collectively these videos have resulted in tens of millions of views and millions of dollars in Blendtec blender sales."
  • Viral Inspiring: "Our friends at Grasshopper.com created an inspiring video called 'Entrepreneurs can change the world.' The video has been viewed over 800,000 times to date on YouTube," said Lavinsky.

According to Lavinsky, viral marketing can get thousands, tens of thousands and even millions of people to hear about a company and their crowdfunding raise "This can result in you raising tons of money and gaining tons of customers for your company," Lavinsky says.

Lavinsky encourages entrepreneurs to get their creative juices flowing for new and innovative ways for spreading their news virally.

"Once you come up with the idea, create the content and then market it by sending it to your friends via email, Facebook, Twitter, etc. and asking them to forward it to their friends," he said.

About Growthink:

Growthink, Inc. is a leading provider of business plan consulting services. Growthink has also developed several training products and tools for entrepreneurs, including a business plan template, marketing plan template, and strategic plan template. To learn more about Growthink's products and services, call 800-506-5728.

Read the full story at http://www.prweb.com/releases/crowd/funding/prweb9548360.htm.


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