By Evan Vitale

This is the second in a two-part series on crowdfunding.

The key – and most important – part of seeking funds for your project via crowdfunding is the pitch (or presentation).

Consider your crowdfunding to be like a marketing event or like the television series “Shark Tank.” You need to make a huge impression on your viewers in order to persuade them to whip out the credit card and contribute to your project.

Here are some tips on how to prepare your crowdfunding presentation:

Plan your idea and your project. This includes your design; your team (if any) and your strategy. All of these things need to be in place before your create your presentation.

Create and build your marketing strategy. Even before you release your crowdfunding presentation, you can begin teasing your audience and creating some social media buzz. You don’t need to give away your million-dollar idea here, but you can make strategic announcements about your project, how it’s going to help consumers or businesses solve a problem, take pictures, etc. Release a little bit at a time and consider a crowdfunding countdown to the release date.

By doing this, you’ll immediately gain some social media fans and followers and that’s exactly what you want as these are the same people who are going to be funding your project.

Create a business plan. Yes, you need to do this. Your project should be treated like a business. What is the point of your project or idea? What will it do? Is it going to solve a problem, make money, etc.? How much money do you need to raise? What is the deadline for your financial goal?

As you are creating your presentation, think of all the questions that could (and probably will) be asked after your initial pitch. Then, be sure you answer all of those questions in your presentation pitch.

Remember, one of the best ways to generate presentation ideas is to review other presentations in crowdfunding websites. Review what projects reached their financial goals.

By Evan Vitale

You’ve probably heard the term “crowdfunding” many times, but now you’re thinking it might be a way for you to raise money for your business, startup idea, non-profit, special project, etc.

In a nutshell, crowdfunding is exactly what its name implies: the ability to raise money and finance a project by pooling together donations from many individuals.

Here’s how it works:

You create a free account on a crowdfunding website (Kickstarter for example) and post a video in which you explain your project, business, invention, idea, etc. It’s a pitch. You need to be interesting and your idea needs to capture as many pairs of eyeballs as possible.

Based on the amount of the donation, you are willing to give them something. It can be a gift, a product you’re creating or even a part of the business. Some music artists, for example, give a copy of their latest CD for a small donation or a t-shirt for a little bit larger donation. What are you willing to give as a gift for someone’s donation?

As your crowdfunding project starts, donors can see your profile, pitch, etc., as well as how close you are to your overall financial goal.

If you reach your donation goal, the crowdfunding website earns a royalty fee (usually around 5% or so) plus credit card processing fees. However, if you don’t reach your financial goal, no money is collected and the project ends. Be aware that some crowdfunding websites collect a small fee for failed projects as well.

If you’re considering a crowdfunding project, a good place to start is by visiting several crowdfunding websites, reading many project profiles and collect ideas. Make sure you’re aware of the site’s fees and how the website is structured before you submit your crowdfunding project.

I’ll have more crowdfunding ideas in the second part of this blog series.