Crowdfunding In Nigeria: 3 Rules For Successful Crowdfunding

Crowdfunding In Nigeria: 3 Rules For Successful Crowdfunding

Crowdfunding is increasingly becoming a better option for many start-ups in the world. It is unfortunate that Nigeria is still backward in terms of enjoying the benefits of a successful crowdfunding.

We are very much interested in waiting for bank loans, investors, venture capitalists, and grants for us to start up that wonderful idea of ours. Sometimes, the loans and grants don’t work. It is in situations like this that we should adopt successful crowdfunding.

Crowdfunding simply put is a way of raising money for start-ups by getting small donations from a large number of people. Believe, the ripple effect of this can be awesome. What Pebble watch that Synchs with your smartphone did. They were able to raise over $10 million dollars on Kickstarter, a crowdfunding platform.

You too can do the same. You can have a successful crowdfunding venture and it can launch you to achieving your goal. Below are tips on how you can run a successful crowdfunding in Nigeria.

Tips On Successful Crowdfunding In Nigeria

successful crowdfunding

  1. You Have To Have An Intriguing Story

People will give you money if your story is touching. I know the Nigerian situation is a little messed up right now. That notwithstanding, people can still differentiate a true story from a false story.

You see, to build a successful crowdfunding venture, you have to reach out and build relationships. According to Meece, “Crowdfunding is built around relationships; It is a very human phenomenon.”

Prepare to put yourself out and connect with investors through any means necessary; videos, audio records or photos. You see, the potential investors will like to see your passion explained through your story and feel that they want to be part of whatever you have going on.

2. There has to be an existing Network

For you to have a successful crowdfunding, you have to work on certain existing networks. Crowdfunding process depends hugely on trust and reputation so you will need a core inner group to speak and vouch for you. They are to help you spread the word.

In the words of Meece, “Every successful crowdfunding campaign has an immediate first-degree network that jumps into that campaign.”

The implication of this is not that you need to have thousands of Facebook friends. All you need is a little group of dedicated fellows who will help you spread the word.

You see, “No one wants to be the first one dancing on the floor in middle school,” says Meece.  The truth remains that investors have the same sense of hesitation: they feel better donating their own money when others have already, too.

  1. Cool perks 

In exchange for their money, you’ll need to give potential investors a reward. This could be a sample, the ability to vote on how a product is designed or an opportunity get initial or early access to a product or service before it enters the regular market.

More so, you should offer multiple levels of perks to bring an incentive for a broader range of contributions. RocketHub’s most popular donation level is $20, but the average is about $75. And then there are the once-in-a-lifetime donations: “We have had strangers give $10,000 to campaigns. Crazy, absolutely crazy,” Meece says. “You have to have those higher price points there.”