social media how toDo you need to raise funds to get your idea off the ground?

You’ve got a brilliant business idea, but your bank lacks your vision. (Or perhaps you lack the collateral.)

Maybe you reached out to friends and family, but you know they lost their shirts when your brother-in-law’s salmon-flavored energy drink flopped. Is this the death of your nascent business?

Not. So. Fast.

Social media is changing more than the way we market and communicate… It’s changing the way we raise capital.

Crowdfunding websites are popping up that connect entrepreneurs with investors, producers with patrons, and causes with contributors.

What is crowdfunding?

Crowdfunding builds upon the idea of crowdsourcing: “the act of outsourcing tasks, traditionally performed by an employee or contractor, to an undefined, large group of people or community (a “crowd”), through an open call.” (Wikipedia)

Crowdfunding pulls together a community—tightly knit or disparate—to fund a project, business or cause, usually via the Internet.

How does it work?

Although the rules differ from site to site, generally people (or businesses or charities) pitch an idea, set a fundraising goal and set a deadline for raising funds.

Potential patrons can review the pitches and decide if there are any they’d like to support. On most crowdfunding sites, people are not investing in the project or business; rather, they are funding it. They are rewarded if the project comes to fruition, but don’t end up owning any part of the business or project.

This is in part due to U.S. regulations currently under review by the SEC, so this may change in the near future. However, different sites have different rules, especially those based outside the U.S., so make sure you review the terms and conditions carefully!

To launch your own project, I’ll focus on Kickstarter—one of the most popular crowdfunding sites—as an example.

You start with a pitch: you describe your project, specify what rewards patrons will receive if the fundraising is successful and create a funding goal and a timeline.

If you don’t reach your funding goal by the deadline, no money changes hands. As Kickstarter says, this “protects everyone involved. Creators aren’t expected to develop their project without necessary funds, and it allows anyone to test concepts without risk.”

Pledges are made with a credit card; if you’re backing a project, your card won’t be charged until the project is successfully funded.

How do you get your projects noticed… and funded? A quick look at the active projects on Kickstarter or IndieGoGo will show that you’ve a lot of creative competition out there.


Here you can see that it's a competitive marketplace.

To catch the eye of potential funders, you’re going to need to stand out, engage your community and close the sale.

Here are 11 tips to help you secure funding:

#1: Choose the right crowdfunding site

Although there’s plenty of overlap in many of the crowdfunding sites out there, each caters to a specific audience.

Are you a creative? Be sure to check out Kickstarter or IndieGoGo.

Looking to start more of a traditional, albeit entrepreneurial, business? Head over to ProFounder.

Does your idea have a social bent? You might do well at Buzzbnk or 33needs.

Non-profits can fundraise at sites like CauseVox or FirstGiving.

In the no-niche-too-small category is AppBackr that focuses exclusively on mobile app businesses.


Choosing the right site can make all the difference.

#2: Know your target audience(s)

Anthony Kaufman recommends identifying your target audiences, like Jennifer Fox did while raising money for her film, My Reincarnation.

Fox had two built-in niche audiences to target: fans and followers of her primary subject Tibetan Buddhist Master Chögyal Namkhai Norbu, of which there are many worldwide, and the estimated 7,000 people that Fox cultivated during the grassroots release of her last film, 2006’s “Flying: Confessions of a Free Woman.”

Focusing on a passionate niche can help, too. Many of the successful projects on crowdfunding sites target a specific, narrow audience. The target audience might be focused in a geographic area, religious in nature or share a common background. Graphic novels and music tend to do well, too.


Targeting an audience is key to your success.

#3: Plan ahead

According to John T. Unger, an artist and designer who has successfully funded a project on Kickstarter:

The best advice I have is to plan ahead. A Kickstarter project can go by really quickly.

The vast bulk of backers seem to happen at the very beginning and very end of a project, according to Kickstarter’s own data. That makes sense… it’s exciting when it’s new and it’s exciting when it’s down to the wire.

In the future, I’ll be sure that I have emails written specifically for the beginning, middle and end of a project so that I can keep it active. When a project does take off it can be kind of overwhelming to respond to everyone quickly enough, so FAQ-type emails that are pre-written help a lot too.

Craig Mod, who successfully raised $24,000 on Kickstarter reiterates this idea of the reverse bell curve of patron interest in his excellent article Kickstartup – Successful Fundraising with & the (re)making of Art Space Tokyo.

“People engage things: a) when they’re brand-new, or b) when they’re nearing a deadline. We lose interest in that middle space.”

john tunger

Planning ahead and preparing email blasts can be the difference between success and failure.

#4: Passionately pitch your project.

You’ve heard the old saying, “you only get one chance to make a first impression.” Well, it’s even tougher on popular crowdfunding sites where there are 30 other projects simultaneously trying to make a first impression on the same page.

new passion

Your project name, graphics and description all play an important role.


Create a compelling name, description and an image as part of your project to help you stand out. A video is critical, too. (See #10 for more on that.)

#5: Have a plan for spending their money.

No matter how cool your idea is, most people want to know that you’ve got a plan that will get you there. Ricebowlproject suggests that you “give a detailed explanation of how exactly you’ll be using their money and keep all costs transparent. This will build trust in you and credibility in your project.”

new money

People like to invest in a solid plan.

 #6: Leverage your social networks.

It’s important to realize that most of your audience may not be familiar with crowdfunding. Chances are you’ll need to use social media, email marketing and other communication tools to drive your community to your project at a crowdfunding site.

Unger says:

[Crowdfunding sites aren’t] “much different from any other launch in a lot of ways—so to get attention, I used the same tools as usual: email to the list, Twitter, Facebook, etc.”

Yet again, the importance of list-building and networking can’t be overstated.

Do you need help leveraging your social networks? Social Media Examiner is filled with hundreds of helpful posts, including:

#7: Break up bigger projects

None of your potential patrons are likely to drop $100,000 on your next big thing. If they were that flush, they’d probably be investing with Bernie Madoff. (Hmmm… Maybe they were.)

Your project has a better chance of reaching its funding goal if you break the project into smaller, bite-sized pieces. You might break your video into filming, editing and distribution. Rather than trying to raise enough to start a business and make payroll for two years, start by raising enough to build a prototype of that solar-powered toothbrush you’ve been dreaming about.

small bites

Break your bigger project into smaller, fundable pieces.

People like to feel like their contribution is going to make a difference. Fifty dollars makes a bigger splash when you’re raising $1,000 than when you’re raising $10,000.

Smaller requests seem more attainable, and people want to feel like they’re on a “winning team.”

#8: Create compelling rewards

Kris White offered plenty of rewards for patrons of his graphic novel The 36. Some were fairly standard, including a PDF copy of chapter 1 for pledges of $1. However, four patrons who were willing to pledge $1,000 each could get their name and likeness “immortalized” as a supporting character in the story.


Being immortalized in a comic? That's super, man.

#9: Treat your crowdfunding like a campaign

Pitching a project is the beginning, not the end, of your work. You need to continually drive people to your project page. Many crowdfunding sites use traffic and early success as indicators of which projects to feature. IndieGoGo states that 50% of deciding who gets featured comes down to “pageviews, number of funders, % of goal completed.”

#10: Tell a great story… and ask for the sale

As Jeanie Finlay says in her post, Adventures in Crowd Funding, “when I launched the first campaign, I simply put up the trailer and we raised about 10 pence… I made a new trailer with me pitching the film… it made a world of difference. I now believe that people invest in the filmmakers as much as the project.”

#11: Promise—and give—credit where credit is due

People love to be acknowledged. Whether it’s on the liner notes, film credits or etched into the wall in your retail space. Let people know how they’ll be credited and follow through. It gives you a great story to tell and builds your base for your next crowdfunded adventure.

Takeaways Tips on Crowdfunding

Successful campaigns require passion, a clear vision and a strategic plan that can be executed. You’ll get the most activity at the beginning and end of your campaigns, but you need to be working for your goals throughout.

Have you financed a project through crowdfunding, or are you planning to do so in the near future? If so, please share the details (and links) below. If you have your own tips and tricks not mentioned above, we’d love to hear about those, too. Leave your questions and comments in the box below.

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  • Don’t forget our crowdfunding site which is dedicated to entrepreneurs – Crowdfunding works – and we will help you! Don’t let your dream venture die on the vine – go make it happen with the support of your community!!

  • Great suggestion…will have to check it out.

  • This is an awesome article.  You’ve really summarize how Crowdfunding works / should work. This will be a great resource for later use.

  • This is good info…I like working with small crowds of familiar people…Any friends interested in volunteering for such a project with my Not for Profit should check out my “Events” at Facebook @ Lezah Rous Edwards.  That reminds me I haven’t added this to my blog or here at ‘Twitter”.   I better get busy….Thanks for sharing

  • Sounds like you’ve got a hot entrepreneurial idea. 🙂

  • Nice work here. I’ve been following crowdfunding more and more recently – seems to be exploding.

    You should also note – they had a ton of big hits as well (including a recent $100,000+ project – and have established a more incubator model with next step opportunities.

    Also a slightly different but important one is – not pure crowdfunding but there are some similar elements.

  • Or go direct and do it yourself. 🙂 I just raised over $16k in 7-days for my new book series, on my own.

    You can use those sites mentioned here, and you should, if they accept your project. Remember though, they don’t take everyone (Kickstarter only wants “creative projects”), and they take a cut.

    Either way, you SHOULD do it. I’m living proof, it works.

  • Deathbyzamboni

    I recently posted a Kickstarter project to help fund my second novel. I managed to make my total in half the time, two weeks instead of a month. Here’s the link: think that creating a very entertaining and high quality video made a huge difference for me. Also, making sure the video highlights some of the most exciting parts of the project. I also think showing your personality, the creators personality, contributes a lot to interest. Finally, I would say that having a truly intriguing project makes a big difference, pitching something that isn’t typical in the category.- David David Katzmanauthor of Death by Zamboni and the pending A Greater Monster.G+ at:

  • Deathbyzamboni

    Sorry – that link got messed up. Here it is:

  • Michelle Ellen

    Crowdfunding is great… I look after an artist called Ben Semmens
    ( and we funded his new album through the website
    Pledge Music which is great for artists/bands… It was slow at first
    but then everyone started pulling together cheering everyone else on…
    It really was moving, and the great thing is that he will now be able to
    record the album without being tied into a label… We fly from the UK
    to Georgia next Sunday…. Exciting times!

  • KerriL

    I am curious how your ideas are legally protected with crowdfunding?

  • Jay

    I just came back from the Toronto Film Festival and filmmaker Gary Huswit spoke.  Afterwards, I had a chance to speak with him – his is financing his filmmaking career through crowdfunding, very exciting and very successful.  My wife was in the film Solomon Grundy which also made more than their goal on Kickstarter ( 

    One piece of advice: have a ‘dutch uncle’ ready. The ‘dutch uncle’ strategy means that you have someone who can lend you maybe 10%-20% of the total money you are trying to raise.  This way, if you reach 8K on a 10K campaign – you simply apply the additional money from your lender, get the entire campaign fund, and pay back your lender.  So you don’t lose your hard-earned campaign fund at the end.  Kickstarter requires you to hit the full amount before you get anything at all.


  • Deathbyzamboni

    You bring up an interesting point, Jay…it points out the potential illusion of the funding really being crowdsourced. It’s a logical strategy, but it does violate the spirit of Kickstarter, which “prevents” you from adding money to your own project. Believe me, I thought of that approach, but I was fortunate that mine was a popular project without resorting to something sneaky like that. If you don’t plan to have a “Dutch Uncle” then you have to be really strategic about how high to set the bar.

  • Joan, good points. I couldn’t get to all of the great sites. I had looked at when I first looked at crowdfunding sites, which became a segment on my local evening news program. You can check out that here:

  • Kudos, Jim! Of course, these sites can help introduce you to new people looking to fund ideas.

  • That’s a great story! Thanks for sharing, Michelle.

  • Great tip, Jay! (Assuming that it doesn’t run afoul of the crowdfunding platform, as Death By Zamboni (probably not his real name) notes above.

  • Deathbyzamboni

    Lol, no, my name as identified in my first post with the messed up formatting is David David Katzman. Death by Zamboni is the name of my first novel, My second novel is the one I put up on Kickstarter explain my name in my video…making it personal can also increase interest for an art project.

  • Deathbyzamboni

    Dangit. My computer doesn’t like this interface. For some reason it keeps adding random characters to the end of my links. And when I was using my iPad, it wouldn’t post a message repeatedly. 

  • Stefano Bianchi

    great article !
    You should also have a look at the brand new “Crowdbooks” which is specifically targeted for photo / art books !

  • GayeMiller

    I have used These are investors, angel and vc, from around the world. The site has just been upgraded this week, so bare with it for a few days. 

    They have over 600 Angel Investor groups, 35000 credited investors and 150+ venture Capitalist firms. 

  • I plan to put my project up on  It’s a fairly new platform for social good campaigns.  Wanted to get Start Some Good on your radar.  I like their model. Nice blog post. 

  • M. Sharon Baker

    There is one crowdfunding site that gives you equity for your investment. It’s called Microventures, and CEO Bill Clark has successfully funded three companies, raising sizable amounts from people all over the country.

    You can learn more at

    (Full disclosure, I’ve done some work for Bill.)

  • To me having an interesting project is key.  After that having really cool rewards entice someone to support you.  Rewards are sort of a way of preselling your product so that you already have a market ready and they just happen to be supporting you on the promise of a good product to come rather than seeing your product ready made and buying it.

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  • Hey Rich – Vlad here from RocketHub. I think you’ve put together a great resource together here. But I do believe that you’re focusing a little too heavily on the concept of “strangers.”

    We’ve done thorough analyses of successful projects and successful projects on the other platforms. The myth of: “if you building it, they will come/give” – is one of the biggest misconceptions surrounding crowdfunding. No matter how good a project is – without a core network of 1st degree supporters, very few projects get off the ground.

    Many projects do hit a tipping point where support goes beyond their network and involves strangers – but that is not the majority on any of the platforms.

  • Love all the tips and reality check on what it takes to be successful using fundsourcing sites. We’re set to launch our new mobile site, The ChangeMob, later this month (Sept). It is set up to help fund non profit projects $1.00 at a time. The beautiful thing is that unlike CauseVox, FirstGive, or StartSomeGood, who charge a range of fees, there is no charge to the non profit organization. 100% of each dollar contributed goes to the cause.

  • Rich thanks for writing about this – it’s a subject I don’t have any experience in at all and it fascinating!

    Vladimir, I really appreciate here. They add depth to this introduction to crowdfunding.  It’s obviously not easy for everyone to pull off, but I want to follow more of the successful stories.  I think they’ll teach us more about being social online.

  • Thanks for the reference!

  • Thanks, Jennifer, we’ll check it out.

  • Hey Rich,

    Thanks for writing about us and providing such great tips on crowdfunding. I like your tip about planning ahead. We’ve seen that the nonprofits with well thought through plans and communication strategies being able to raise more funds than those without.

    Also, we recently published the 7 Habits of Effective Personal Fundraisers, a tip guide for nonprofit fundraisers. A couple of your tips really reflect some of the habits that we wrote about too.

    -Rob Wu, CauseVox

  • Vladimir,

    Good points. Like with any initiative, seeding your project w/”1st degree supporters” (love that term!) is critical.

  • This is really neat. It comes real handy especially when funds are real low and the needs are very high. The suggestions are so great. I would really try to check this out and see for myself.

  • This is really neat. It comes real handy especially when funds are real
    low and the needs are very high. The suggestions are so great. I would
    really try to check this out and see for myself.

  • Thanks Rich – and I want to see RocketHub in next post 🙂

  • Hey Cindy – at RocketHub we run a purely free educational arm –

    Feel free to check that out for more info on success.

  • RadoTheDugIn

    Hi, thanks for sharing us really good tips on crowd-funding.

    This is the one of many ways on how to fund money for project. At the beginning of every project you need to somehow persuade people that this is really worth of it. All this could be done by catchy promo video or by blogging, something that is many times liked, tweeted i.e. shared. 

    In the world of social media are users get used to “Click” likes and therefore I would recommend also take a look on this project Is your project worth to flattr it?

    — Rado

  • Really good information ..

  • Mirko Schueller

    Do you have some sites for Nonprofits internationally?
    We are in Germany, Europe where these dont work.


  • Nicolas Reis

    Hey Mirko,
    you can check out: for Nonprofits in Europe. 

    Good luck!


  • It is a really good idea to implement on new projects which are short of funds. I hope it works for me 🙂

  • Soeren Andersen

    We just launch our site for crowdfunding in Denmark. It’s called crowdfunded and its run as a non-profit site. Any creative person or entrepreneurs can pitch their projects here. Though the language is in Danish only for the time being. Feel free to drop by our website, facebook profil, twitter profil crowdfundeddk. 

  • Ben.

    Hey Mirko, is a good site for Nonprofits in Europe, but I would also check out PleaseFund.Us. It’s quite new but they really helped me. They even assign you a ‘community manager’ who works with you and your project from start to finish. Good luck, Ben

  • This is an excellent articles about crowdfunfuding which I think we need more of. Yesterday we launched HelpersUnite is the first crowdfunding platform that combines creative and business crowdfunding with charitable giving.

  • Great read! A friend just told me about this crowd funding concept. I lost heart because I tried kickstarter, but it’s only for creative-type projects. Mine is about supporting military families through personal finance, small biz startups, career and other issues unique to service members. It’s called GI Money I’ll check out some of the mentioned sites. Thanks!

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  • Cathye

    How can I contact you by email?

  • Cathye

    How can I contact you by email?

  • Cathy

    Or, can someone help me with how to embed a video in a Crowdfunding letter? I am relatively new to this and although I know what I want to do, I am not always sure of the steps. Thanks!

  • Cathy

    Or, can someone help me with how to embed a video in a Crowdfunding letter? I am relatively new to this and although I know what I want to do, I am not always sure of the steps. Thanks!

  • Thanks for all the great ideas! I learned about kickstarter, but was turned off because my ideas are more non-profit and social based, and didn’t really fit.  Also appreciate all the comments that direct me to other organizations better suited for me. A little light at the end of the tunnel…

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  • SS World Media

    Great detailed post on getting funding – it’s essential that projects are well thought out to maximize your efforts.

    We wanted to give you the heads-up on our crowdfunding site that is launching within the next few weeks. It’s called Go Get Funding ( and is dedicated to life-events, projects & causes. From travel adventures, personal crisis situations and more.

    Thanks again for this post and we hope to connect soon 🙂

  • Thanks so much for this post! I finally launched my own Indiegogo project. I couldn’t use kickstarter, because I’m not an American. I could have partnered with a friend, but I figured it was easier to try Indiegogo. I like it a bit better anyway, because even if we don’t raise all the funds we still keep all we made. Posting the project is the tip of the iceberg for me. Now it’s time to pound the pavement so to speak and start reminding people all the things I’ve done for them 🙂

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  • I launched my first kickstarter project this week.  I’m psyched and trying hard to get backers.  We’ll see how it goes.  Thanks to this article, I see that I’ve done some things right and need to add a few other things.

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  • I know how frustrating it can be to be say 30% funded and the campaign to feel like it has gone quiet. My only advice is to think about niches that would be interested in your product. Perhaps the networks of new mums online would be a great place to start. Become part of those networks, contribute, and then put the call out for support. It’s important to contribute, because otherwise you’re just spamming people. Lets face it tho, being part of those communities is going to be a must for future endeavors with your product anyway, so you might as well start now before the product is even a reality.

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  • JJ

    Thanks for helping me organize my effort! Your advice can also help those of us attempting to fund more personal situations like adoption. See link below:

  • ProFounder is shutting down, there is an article on their website 🙁

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  • It’s just crazy how much the whole crowdfunding scene has taken off in the past few years with no signs of slowing down. It’s becoming a widely popular trend more each day. Still, there are many people who haven’t necessarily heard of it or understand how crowdfunding campaigns work so articles like this are incredibly useful. Great job, lots of wonderful tips!

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  • Good article. We have one about crowdfunding posted on our site as well. We have seen a large rush of entrepreneurs seeking our help in putting together a business plan for their crowdfunding venture. As the sites get more and more competitive it appears that providing solid due diligence materials is becoming important. Best of luck to everyone

  • Hoping my business is as lucky as others that got funded through crowdfunding.. Need to figure out how to promote my page 🙂

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  • Hello, I’d like to ask if there any crowdfunding sites that support startups in West Africa.

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  • Rita

    I’ve written a book, had it copyrighted, and have been doing some editing. It took me over ten years to get to this point. I’m retired and live on a fixed income. I’ve researched the costs to get my book published and don’t know how I can afford it. Do you have any suggestions? I’ve done a YouTube video asking for assistance, but no luck there. I’ve also done a ‘GoFundMe’ campaign as well, the same results – $0!! I don’t want to wait another ten years to get this book published. Many people who have read the synopsis think it might be the next ‘Love Story, Ghost, or Gone With the Wind’. I hope they’re right! What else is out there to get the help I need? Thank you for any viable suggestions.

  • Darius

    Great post, I tried and they really helped my campaign reach its goal.

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  • Great tips here, and timeless. What worked backed then, still works great today. Has anything changed that you can think of?

  • Dave

    Is there anything taboo about pitching the same project on several crowd funding websites? Or illegal?

  • Great tips…but, Vladimir is right. Your community and crowd of people are going to be your main supporters. Unless you have that amazing campaign that goes viral, you need to secure your position within your immediate crowd.

  • Would anyone of you consider building a personal funding website, with all the pages and trimmings (remember onemilliondollarhomepage for example) rather than using a well know platform like the ones listed above?

  • Tim Ely

    Just curious. I have an idea and know it will take time to develop but I need to know how to best protect that idea from someone with more resources to develop it quicker? I know patients help with that but once again that takes money and to properly pitch an idea for the money, I still want the concept protected.


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  • Ivan Pavlovic

    It’s very true when they say you should already have established your network and target audience well before the campaign gets under-way. Think also about how to present yourself and making your content understandable, don’t confuse people coming to see your campaign. Bigger websites such as Kickstarter and Indiegogo surely give you an advantage because they have people already looking to contribute.

    Business Developer at Thrinacia White Label Crowdfunding

  • Ammy Wilson

    This is a great article. You cover all perspective points of crowdfunding.