Are you looking to use GoFundMe to raise money for your business?
Think crowdfunding could be a good way to start or expand your startup?
In this article, we’re giving you some tips and advice for using GoFundMe to raise funds for a business venture.
These tips will help you to raise more money and perform better on the platform.
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As for now, let’s unpack some GoFundMe tips for you!
Should You Use GoFundMe for Business?
First and foremost, it’s important that you understand that GoFundMe is a charity fundraising platform. It’s primarily used to raise funds for personal expenses, but it can also be a strategy to acquire business funds from the crowd during the startup phase.
GoFundMe is best for non-profit businesses due to the charitable nature of the platform. It can be used for profitable ventures, but you’ll have to do a lot more work in storytelling (scroll down to Tip #2 to learn more).
Keep in mind that there are other methods of crowdfunding that might be a great option for you as well, especially if your company is using a for-profit model. To explore these, check out these helpful articles:
Now that you understand what types of businesses work well on GoFundMe, let’s give you some tips for running a successful campaign.
1. Consider ‘What’s In It For You?’
As a business owner, it’s pretty obvious what you get in return from GoFundMe — capital to start your non-profit business.
That’s why this tip isn’t geared towards you. It’s geared towards the people who will potentially back your campaign: What’s in it for them?
You have to be able to answer this question yourself and then communicate that to potential supporters.
Unlike with equity crowdfunding where people are given a stake in company products going forward, or traditional crowdfunding on platforms like Kickstarter and Indiegogo where backers receive product-based rewards for their support, GoFundMe doesn’t deliver any tangible benefits.
So you have to think outside of the box and trigger an emotional response.
Maybe that means promising jobs in low-income communities. Maybe it means a pledge to help the environment.
Or maybe your business means saving lives.
Whatever the case might be, make sure to play up the emotion behind your campaign.
The result?
People being willing to support your startup because they receive value in knowing that they are contributing to making the world a better place.
2. Tell a Compelling Story
When we look at GoFundMe campaigns, we typically see most donations coming from the creator’s friends and family. This is because they already know the person and want to support a major life event in starting a new business.
But you can reach strangers on the GoFundMe platform. And how do you do that?
Through storytelling.
It’s how you trigger that emotional response we talked about in Tip #1. You have to structure your story so that:
- It becomes familiar to people you don’t know: Remember that strangers know nothing about you. You have to demonstrate why you’re the perfect person to take on this challenge, what qualifies you to do so, and why it’s so important to the world at-large.
- It creates empathy: You have to let people know just how passionate you are, and give them an opportunity to step into your shoes. If you can make your mission feel honorable, people will want to make their own contribution through a donation.
- It shows the impact of your startup: When people can visualize how your company will change the world, they are more likely to take action and actually make a donation. Paint the picture for them!
3. Marketing and Promo
Here at CrowdCrux, our bedrock is the marketing of crowdfunding campaigns. We’re so passionate about it that we recommend every startup crowdfunder use marketing to achieve their goals.
Why?
Because it delivers results.
Your marketing strategy should include things such as:
- Using Facebook, Instagram, Twitter and other social platforms to get your message out
- Building of an email list
- Press outreach in your local community
This is how you are going to get strangers’ eyeballs on your campaign.
Once you’ve got them to the page, then they can check out your story and decide whether or not they want to back your startup. But you’ve got to get them there first!
A Resource to Execute Your GoFundMe Campaign
If you execute on the three tips listed above, you will have success in launching your business with GoFundMe.
But how do you actually go about executing that strategy?
It’s a tough question to answer, and there’s a lot to think about. That’s why we’ve put together this course:
In that course, we hold your hand as we go step-by-step into building a campaign that converts into a new business venture!
You’ll come away with:
- A complete marketing strategy
- Full understanding of building the campaign page
- Strategies for building a compelling story
Sound good? Enroll today!
And if you’re looking for more personalized advice, remember that you can always book a coaching call with CrowdCrux founder Salvador Briggman.
We hope that this article was helpful for you in discovering key tips for a successful business campaign on GoFundMe!
Good luck with your startup journey. And keep in mind, CrowdCrux is here to help if you need us!
