Many entrepreneurs are confused about what Business Crowdfunding is, and how to use it. Some think it's for people whose businesses are tragically about to go out of business. Others believe if you have no money, then crowdfunding is a way to get cash for your business. They also think, “I have money, so I don't need crowdfunding.”
In 2018, Business Crowdfunding was a $289 billion business! People are missing the enormous potential of the marketing boosts it can bring to your business. For 95% of the people who raise $35,000 (USD) or more, they are not doing it because they need money, they choose business crowdfunding to grow their audience and test new products in the marketplace, while preserving their financial reserves.
Even large corporations are business crowdfunding to take advantage of the marketing aspects. One of my favorite campaigns is from Kentucky Fried Chicken or KFC as they like to be called now. Whether or not you eat meat or like their food, you have to admit their campaign is clever. The KFC campaign had five things being crowdfunded on the Indiegogo website.
The Story: KFC has an invention lab dedicated to bringing new ideas to life through crowdfunding, and gives people a chance to decide which of the products that celebrate the founder and company are actually worth making.
“Little Colonel Locator,” was raising $10,000. It was a tie like the one Colonel Sanders wore, but it could also be used to locate the person wearing it. It failed to raise the entire amount.
“Smart Cane Remote,” was a cane with the remote built into it. The goal amount was $195,052. The tagline was: “Stop shaking your regular cane at the TV and expecting things to happen.” It failed to raise the whole amount.
“Picnic with the Colonel,” was a cardboard cutout of the Colonel and a cardboard picnic table that could not get wet. It failed to raise $32,248.
“Colonel on Ice- Ice-Skating Show,” failed to raise $2,206,750. No one wants to see skating fried chicken legs.
But the “Kentucky Fried Hot Tub,” was a winner and raised $53,909.
It was described as, “a KFC bucket, but bigger and filled with soothing hot water instead of delicious fried chicken.” Strangely, it has zero backers, which means no one purchased a hot tub.
How did all that magic work? It's all about marketing. The campaign got covered by many outlets with extra time on those stations and shows or extra space in their blogs.
With more people talking about KFC, more KFC products would be sold. It's inexpensive in comparison to the publicity they received. Without having to pay public relations people, they got covered all over the United States. Exciting, entertaining and novel ideas get included in the media.
This campaign was not about trying to keep KFC's doors open. They explored a new way to get publicity and keep people talking about their products and services. You can use Business Crowdfunding the same way.
Not sure where to start with Business Crowdfunding?
Get the FREE Download “Crowdfunding Made Simple” at www.GetCrowdfundedNow.com and Learn How Business Crowdfunding Benefits thriving businesses like Yours!
* Dr. Letitia Wright is America's Crowdfunding Strategist and has helped Powerful, Purposeful and Profitable Founders raise money using crowdfunding for the last six years. Dr. Letitia Wright is a 2019 Nominee for 47th District of California Woman of the Year, Faculty of The Global Excellerated Business School™ for Entrepreneurs, teaching in Phuket, Thailand. In March of 2018, she was honored by the All Ladies League and the Women’s Economic Forum in Holland. She also teaches for the Small Business Administration in Los Angeles and Las Vegas as well as for California State University at San Bernardino's Summer MBA program.