Undoubtedly, crowdfunding is a revolutionary way to secure funding and to support and help innovative ideas to become actual products and services. Basically, if you are building customer-oriented business, crowdfunding is something, which you should seriously consider. After running a successful campaign, which has raised more money than the initial goal, the chances of securing further investment increase significantly.

When building the campaign, keep in mind that the whole approach is different than pitching investors, because you are communicating your ideas and business to a larger group of people. Along with the money, crowdfunding campaigns can bring additional benefits and here we will emphasize on three of them – attention, improvement and traction.

Attention

Well-crafted campaigns can bring tremendous results. Here the key to success is to know your target audience well, so you can properly and effectively market your campaign to them. By getting the attention of broader group of people, you are making your idea more visible. Unique campaigns get the attention not only of customers and potential investors, but also are recognized by the media. Getting press is difficult (not to say, almost impossible) for a starting company, but if you create powerful, engaging campaign that is widely shared on social media, you can’t stay unnoticed for a long time. Crowdfunding campaigns are great way to build brand awareness on a tight marketing budget, which is extremely useful for any starting company.

Improvement

Crowdfudning campaigns are extremely powerful way to receive feedback from potential customers. The community of people, which you are targeting, is likely to share their ideas and suggestions about the product and to highlight the weak spots that you’ve missed. The crowds look for quality products that can bring value to them. You are to receive valuable information, which often can help you to reconsider your whole approach to the idea, to make major changes or to help you focus on making the product much better and aligned with the demand of the market.

Traction

Building an initial customer network and establishing relationships with clients when your product is not ready yet, is extremely powerful. It is a great way to prove to investors and partners that your business has the potential to succeed. The higher the traction of a startup – the higher are the chances of getting the attention of investors. High traction proves that the concept is working and the opportunities can grow. As getting traction is extremely important part of the growth strategy of every starting company, crowdfunding campaigns can be immensely valuable and can help the startup to “get off the ground”, which is considered to be the hardest part.