From artists to entrepreneurs, the media has portrayed crowdfunding as a way for individuals like you and me to pitch our greatest ideas to the world in the hopes of securing financing, generating buzz, and building a foundation of early-adopter customers.
However, some of the most successful campaigns have been the result of businesses adopting the crowdfunding model as a realistic way to finance research and development expenditures for new products. Think Wasteland 2 by Interplay Productions, War for the Overworld by Subterranean Games & Rise, or TouchDome, with their latest luxury watch.
Unlike individuals, businesses have an existing customer base, brand presence, and the ability to spend money on marketing, advertising, copywriting, and video production services. Crowdfunding for products has become an increasingly more realistic option for existing businesses.
One such businesses is Hairline Illusions, who on Feburary 17th, decided to enter this new emerging market for funds with the launch of their Indiegogo Project, The World’s First Healing Cap® Cranial Prosthesis and the Disposable Healing Cap®. This product functions as a medical wig used to stimulate the scalp, aid infected sebaceous glands in the skin, and protect scarred tissue from bacteria, microorganisms-inducing extra collagen production in the scar tissue. Their product helps victims of chemotherapy, severe scalp burns, and alopecia.
Since 2006, the Company has offered it’s one for one program providing medical wig grants to deprived women and children.
“The Hairline Illusions one for one program was created from the concept when people look good, they have a tendency to feel good. Hair loss can be a crisis that’s hard for many to take. The right wig can make all the difference in the world – boosting self-esteem and the psychological healing process.”
I had the opportunity to speak with Egypt Lawson, the owner of Hairline Illusions to learn about the company and their approach to crowdfunding. I’ve included the results below.
Why did Hairline Illusions decide to start a crowdfunding campaign on Indiegogo?
At Hairline Illusions we were very excited about our new product The Healing Cap. We were looking for the most effective way to share the news about our new product. During our research we came across Crowdfunding from Indiegogo and thought this was a perfect way to spread the word and receive the financial backing necessary to help launch our new product.
It seems like you have a strong base of existing customers. What has been your marketing strategy for the campaign. Have you been reaching out to your existing customers?
Hairline Illusions has many loyal followers on various social media outlets. We posted the news about our campaign on Twitter, Linkedin and Facebook in addition to alerting relatives to let them know about our new product “The Healing Cap” on Indiegogo. News Releases were also sent to various media web sites.
Why did you decide to crowdfund on Indiegogo as opposed to other platforms?
We heard about the success of other projects funded through Indiegogo platform and felt this was the best way for Hairline Illusions to get the message out. Their secure website along with the ability to easily integrate your campaign through social media made Indiegogo our first and best choice to raise awareness of our new product The Healing Cap.
There are many individuals in the emerging crowdfunding industry that are considering going the consulting route. What kind of unanticipated difficulties did you experience that could inform some of our readers more about pain points businesses experience with their campaigns.
I would advise prospecting crowdfunders that diligence is crucial to a successful Campaign. Pre-promotion is the key – building up to the campaign is necessary for business campaigns – even if you have a strong following and customer base. We started promoting after the campaign launched and have noticed it is taking time for people to visit our campaign. You can not merely post it and forget it. You must constantly put the word out through social media mediums, you must send updates and constantly remind people of the goals you are trying to accomplish and why. This task requires a delicate touch, because (depending on your customer base) you may not want to come across too needy this can turn some people off. Also don’t be afraid to ask for advise from Indiegogo as well. Their expert staff are very willing to advise and help whenever possible. In spite of everything explained here, we have had thousands of people visit our campaign and thousands of likes and re-Tweets and we have still not come close to our fundraising goals, but we remain patient and optimistic.
Company Website: www.hairlineillusions.com
Indiegogo Campaign: http://igg.me/at/healingcap/x/
