Reward Crowdfunding as Business Confirmation

Reward-based crowdfunding has grown rapidly. But, despite what you think, its benefits do not stop at accumulating capital for a new business. Reward crowdfunding is a good way to test all or some aspects of your business. If your reward crowdfunding campaign is successful, you should endeavor to understand why it succeeded. Is there a strong demand for your product? Did your marketing approach pull in the money? Or maybe your entrepreneurial resume so strong that people just wanted to go along for the ride with you?

The bottom line is that you should use the feedback you received from investors and potential investors to shore up strengths and address weaknesses.

The same is true for unsuccessful reward based crowdfunding campaigns. A failed campaign does not mean your business can’t succeed. If your campaign was not successful, you should endeavor to understand why, by reviewing feedback you received. Another way to get information is to send an inmail on SterlingFunder to users who followed your campaign but never backed it. People generally want to help, so a nicely worded message asking what you could have done better, will likely get you helpful feedback.

Again, reward and even equity crowdfunding is not ONLY about raising money. It is about high quality interaction with friends and strangers, which you can use for market research to refine your business and your campaign. Keep that in mind as you move forward.

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