May 13, 2014
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Crowdfunding is still a new phenomena in e-commerce. Recently, crowdfunding website Kickstarter celebrated its 5th anniversary. In 5 short years crowdfunding has become a compelling financial force that funds both startups and existing businesses alike. So my question is, what is crowdfunding doing in the world of business and e-commerce?
Learn from crowdfunding
Many of you may remember a little project on Kickstarter called Pebble Watch. If not, look up “most funded” on Kickstarter. There in the number one spot, with over $10 million raised, is the Pebble Watch. Pebble proved the immense untapped potential there is online. As a business, it’s important to recognize the resources available online when large groups of consumers are mobilized behind a single cause.
Below are three ways your business can duplicate the success of crowdfunding:
1) Share a compelling cause
This comes with a brand culture or identity.
2) Create a sense of urgency
Make the consumer want to buy NOW, not next week, not next year. Generation Y and millennial consumers are willing to buy if you can convince them they NEED a product or service.
3) Create a sense of exclusivity
Nobody likes to be commonplace. Even if they can’t afford it, people gravitate towards new and exciting trends. Especially in the technology space, distinguish your product and service from the clamor of competitors.
As a business leader, keep an eye on crowdfunding and learn from it. It might be the next move for your own business!