WHAT IS CROWDFUNDING?
A fast way to get your startup, small business, or side hustle off the ground.
Crowdfunding means raising money, usually in small increments from lots of people, on the internet. Most of your funding will come from your network of people: friends, family, industry folk, social networks, who want to support your idea. You owe your funders nothing in return – except succeeding – and then paying it forward to the next woman coming up.
WHO WILL FUND MY PROJECT?
Most of your funding will come from your FFFs.
Friends, Family, and Followers. The majority of your funders will be friends, family, followers, current clients, and business partners, and your curated audience of people on social media.
Before your launch your project, it's mission-critical that you have a tribe of FFFs who believe in both YOU and YOUR IDEA. You need to pre-sell your rewards to buyers who you know will be interested in the product or service. You will need to be armed with an email list to use constantly. You want your FFFs to contribute within the first 48 hours of a project's launch, to build momentum, and to give your generous FFFs the most amount of time to spread the word to their FFFs - and so on, and so on.
If you are reading this and thinking "Oh gosh, I don't have a big network of FFF's", then you are not ready to crowdfund your project. But, it's OK! Don't be discouraged. You now know what you need to do for the next 6 months - start networking and building up your FFF network who will support you when you are ready to launch your idea. And remember, FFFs include current business connections who are already buying your services.
WHAT'S THE DIFFERENCE BETWEEN FIXED FUNDING AND FLEXIBLE FUNDING?
There are different approaches to funding, and making the right choice is important.
Flexible Funding means you keep whatever you raise, even if you don't make your goal. Flexible Funding is a good idea if your product scales, and any amount of money will help you get off the ground. Be careful with Flexible Funding, because your funders will expect you to show business results, even if you don't hit your goal. This is not charity. This is seed funding for your business, and your funders will be tracking your success.
Fixed Funding means your campaign is "all-or-nothing" – you only get your funding if you meet your goal. Fixed Funding is a smart choice for products that you need a specific amount of money to produce, and if you don't reach your goal, you can't make your product. For example, if you are manufacturing a robot who makes school lunches, and the parts and labor for the prototype cost $50,000, you should do Fixed Funding and raise $50,000.
HOW MUCH MONEY SHOULD I RAISE?
Only as much as you need to launch or grow your company.
Create a budget spreadsheet, and list out the core expenses that you will incur in launching your idea, making sure to include expected taxes and fees.
The best pricing strategy is one that guarantees that you can complete your project, but not too high that you cannot successfully reach your goal. Do your research. Find other similar projects, and how they are priced. If you have more questions, email us at firstname.lastname@example.org
HOW LONG SHOULD MY CAMPAIGN BE?
Shorter is better.
During your iFundWomen campaign, fundraising will be your job. It will be an emotional rollercoaster full of high-highs and low-lows. As such, we recommend a short time span in which to dedicate your life to this. Think 30-45 days max.
IMPORTANT: Start planning your campaign 6-8 weeks before you launch it. You will need sufficient time to strategically plan your fundraise including creating a short pitch video, designing your project page, building up an audience of FFFs, via an email list and social followers, and pre-selling your rewards to supporters who will back your campaign within the first 24-48 hours.
WHAT ARE REWARDS?
Rewards are incentives to get people to fund your project.
Humans love stuff – tangible stuff that rewards us for good behavior. The research show that rewards increase pledge amounts from your funders.
Here are the rewards that drive the most dollars:
- An exclusive pre-order of your product, at a discounted rate
- Selling your "side-hustle" services at a discounted rate, such as video production, blog writing, graphic design, babysitting, dog walking, book keeping, potion mixing.
- Branded merchandise like notebooks, mugs, tote bags, or apparel - items priced at $25 and $100 will be your best sellers.
HOW DO FEES AND TAXES WORK?
All crowdfunding platforms charge fees.
iFundWomen takes a 5% fee on the funds you raise, but you can feel good about that because we pay forward 20% of our profits from standard fees directly into live campaigns on the site. #PayItForward
In addition, credit card processors charge approximately 2.9% + $0.30 per transaction.
You get a 20-minute FREE crowdfunding consultation call, no matter what. If you would like dedicated crowdfunding coaching to help you launch your campaign, or crowdfunding video production, we offer those services at various rates. Remember, these services are all optional. You can stick with the standard 5% and still get your free 20-minute coaching call.
We are not tax professionals, however income from your crowdfunding campaign may be subject to income taxes, so please check with a tax professional to make sure your bases are covered.
You should factor all taxes and fees into your fundraising goal.
WHAT IF MY CO-FOUNDER IS A DUDE?
Awesome! Multi-gendered co-founder teams perform better.