Michael Lauchlan of Crowdfund King started with bamboo sunglasses and a dream. With a carefully plotted crowdfund, run from his dorm room, it brought in nearly $25,000. Since then, Lauchlan has provided the resources for hundreds of companies to earn the capital they need to launch by using crowdfunding.
For the highly motivated entrepreneur, Lauchlan’s Crowdfund King site has a crowdfunding e-course, a blog, and numerous guest spots like this one. We enjoyed getting some insight into how the crowdfunding industry has changed recently from Michael Lauchlan of Crowdfund King.
- What do you need before launching a crowdfunding campaign? You almost want to start you crowdfunding campaign as you’re getting your brand launched. That’s not the way to do it. You’ll need something of a name in your industry before you can really draw in your backers. So, start establishing connections, but get your presentation together as well. First impressions make a difference.
- What do backers look for in a crowdfunding investment? You really have to put yourself in the backers’ shoes. If you only had $50, for example, what would make you want to invest that in someone else’s project? Provide something innovative and unique. Then, fulfill the promise you’ve made to your backers in your campaign. So, when you’re starting out, set your campaign promises low. What can you give back to your investors?
- How do you create a successful crowdfunding story? The most successful crowdfunding stories usually come down to creative minds coming up with something extremely beneficial. In other words, make connections with the people around you and make your story personal. People will respond to that humanity.
- What is the best part of crowdfunding? I don’t want you to feel bad about wanting to be successful, but I have this to say, “It allows us to not just buy fancy cars and big houses, but to help others.” I funnel my earnings into Salvation Army every year since 2013 and supports their annual golf tournament. Aim to use your proceeds for charity, and you’ll truly be successful.
- So, how has the crowdfunding industry changed? It’s not a market for just anyone anymore. Backers are smarter now and know how to sniff out a faker. Campaigns that are filled with true passion and a clear strategy are more likely to gain funding because the investing pool is not as naïve as it has been in the past. So, on top of having a great idea, you really need the passion and marketing know-how to sell it. Backers now want to know you care about your product so they know they should care, too.
Even though the world of crowdfunding looks a little different these days, the Michael Lauchlan’s insights and advice provided above can help you navigate it. Be prepared to put in a little work, but you will have many more open doors when you take up crowdfunding to develop your dream.