Every day, several new products are launched in the market, some from start-ups. For product startup brands, if they want to get into large retailers like Best Buy or Walmart, it cannot be achieved unless they set a good base, meaning to have an established sales trend.
Crowdfunding is proving to be a viable way a product startup can get sales (and develop a baseline), test new concepts and even raise funds. Crowdfunding can even help a product startup to pre-sell its products before they start the manufacturing process. In crowdfunding, a great idea is presented to potential end-customers and if they like it, they will pre-order or even make monetary contributions to help transform the idea into something tangible. This is an avenue that product startups should adopt. Here are some reasons product startups should borrow from those who have successfully launched crowdfunding campaigns.
Presented with a Huge Marketplace
SimilarWeb estimates the popular crowdfunding platforms Indiegogo and Kickstarter attract more than 60k visitors every month. This is huge traffic, and given their vibrancy, any product startup should be thinking about how to launch their products on either or both platforms. Amidst this huge traffic count lie potential customers, people who are willing to back the project as it may align with their wants or needs. Also, there are those who are looking for discounted products or want to get a new product before anyone else. When you combine this with those who like the idea and want to be part of the journey, the potential presented by these platforms is huge and is worth every effort. A strong crowdfunding campaign will help a product startup not only raise the required capital but also sell the product early enough as well as market its products at a minimum cost.
Strong Foundation
Product startups struggle with building a customer base but with crowdfunding, this becomes a little bit easier. All that is needed is to present a good case and convince the backers and early users why they will benefit from this product. If you deliver as expected, these are the people who will market the product for you. They will be return customers as well as refer others. With this, you will have built a strong foundation such that by the time you are moving to retailers, the product is well known and you are not struggling to sell.
Selling to Retailers
Once you have fulfilled your backers and feedback has been good, then it’s time to decide whether retail is the next step. While some product start-ups choose to sell on their own e-tail site, many crowdfunded product start-ups choose to pursue the retail route. If your campaign was successful, you may have already gotten a few emails from interested retailers. However, many retailers know what product start-ups are ready to work with them and which ones are not. The ones that are not ready waste their time as well as the retail buyer’s time. You don’t get a second chance to make a first impression. Do your research and get prepared. If you don’t know how to get prepared to sell to and work with retailers, there are consulting agencies like Retailbound that can help your company get “retail-ready”.
If you are looking for help with launching your product on a crowdfunding platform, we recommend you hire a marketing agency that has a track record with helping product start-ups launch on Kickstarter or Indiegogo. There are several great agencies to choose from. Some of our favorites would be Launchboom, The Crowdfunding Formula, Enventys Partners, and The Launchpad Agency. Crowdfunding presents a huge opportunity for product startups and effective utilization of this tool makes all the difference when it comes to building successful business.
If you are looking for assistance transitioning from crowdfunding to retail, contact Yohan Jacob at [email protected] or call 630-246-4068 to get more information.
