Are you thinking about how and where to launch your product? Crowdfunding is an incredibly popular option for entrepreneurs and small businesses who want to get their products out into the world and also to receive great feedback before heading to retail.
Launching your product via crowdfunding, usually Kickstarter or Indiegogo, before retail can be a great way to test the market, build brand awareness, and generate capital for further marketing and development.
Here are five reasons why you should absolutely consider launching your new product via crowdfunding before heading to retail:
1. Reach a Wider Audience: Crowdfunding platforms like Kickstarter and Indiegogo have millions of users who are actively looking for new products and services. This gives you access to a much larger audience than you would have if you were just selling through retail outlets. Plus, these crowdfunding platforms usually have newsletters, social reach and other helpful marketing channels that you can leverage at a better ROI than if you were launching on your own site or retail from day one.
2. Receive Valuable Product Feedback: When you launch your product via crowdfunding, you’ll get valuable feedback from potential customers that can help inform future iterations of the product or service. This feedback can also help shape your marketing strategy and give you insights into what features customers find most appealing about your offering. These early adapters are also aware that this is the first time your product is hitting the market and are more willing to provide helpful feedback than criticism.
3. Generate Capital: Crowdfunding campaigns are a great way to generate capital for further development of your product or service. Not only will this help cover the costs associated with production and marketing, but it will also give you the resources needed to make improvements based on customer feedback or add additional features that weren’t initially planned for.
4. Build Brand Awareness: Launching a successful crowdfunding campaign is an excellent way to build brand awareness and create buzz around your product or service before it hits retail shelves. This can help drive more sales when it does become available in stores as people will already be familiar with it and excited about its release. Also, because of the excitement, a lot of backers will become your biggest supports, sharing the project to their social channels and becoming great ambassadors.
5. Test the Market: Finally, launching your product via crowdfunding before retail is a great way to test the market without having to commit too much money upfront or risk overstocking inventory if there isn’t enough demand for it in stores. This allows you to gauge interest in the product before investing too heavily in production or marketing efforts, which can save time and money in the long run.
Overall, launching your product via crowdfunding before retail has many advantages that could benefit any entrepreneur or small business looking to get their products out into the world quickly and efficiently while minimizing risk and maximizing potential returns on investment. If this sounds like something that could work for you, then consider giving crowdfunding a try!
This guest blog post was provided by Cid Carver, the President and Founder of CX4, a Boutique Crowdfunding Consulting Agency that helps new product creators launch their projects on both Kickstarter and Indiegogo. You can reach Cid here or visit her website – Crowdfunding | Cid Carver Consulting for more information.