As crowdfunding continues to rise in popularity, so does the number of crowdfunding promotion services claiming to boost your number of backers in exchange for a fee. But that raises an important question: are these services worth their cost?
If you’re running a crowdfunding project, you’ve likely been approached by at least a dozen of these services. So how do you decide if you need to enlist their help?
What is Its Track Record?
Make sure you have an idea of the promotional service’s record before committing to paying for their services. If they say they have never worked with an unsuccessful project, that is highly unlikely and should raise some red flags. On the other hand, the company you hire should have a track record of success.
Additionally, search the Internet for reviews of the service. Find other project creators who have worked with them, and get their opinion. Crowdfunding forums are a great place to find reviews and recommendations.
How Much Does the Service Cost?
First, look at how much the promotional service costs. If it’s free, it can’t hurt to go for it. On the other hand, if it’s outside your budget, you’re better off doing some of these same promotional activities yourself.
Consider the pricing structure, as well. Does the service operate off a flat fee, or a percentage? It’s up to you to decide what works for you, but note that if they work off a percentage of funds raised, you are protected if they fail to raise any money for you.
How Does It Work?
Think about what services they’re offering, and what you can do yourself versus what you’re willing to pay for. If it’s something you can do yourself, it’s probably better to save your money and handle it internally. However, if it would cost you a significant amount of time or money to do what the service is offering, it may be worth it to contract with one of these companies. Ultimately, project creators must weigh the value of the service against the cost and decide what’s best for them and their margins.
Other Third Party Services That Help With Crowdfunding
In addition to the crowdfunding promotional services that are designed to directly help you get more backers and raise more money, there are other third party services that can be advantageous to use during your crowdfunding campaign.
Some of our favorite third party services include:
- Green Inbox – For a small fee, Green Inbox will send a direct message to all your connections through Facebook, Twitter, LinkedIn or your email address, telling them about your crowdfunding campaign and asking for their help or support.
- BackerClub – BackerClub is an exclusive club for serial crowdfunders. Project creators can submit their project to BackerClub in exchange for increased visibility in front of some of the people who are most likely to support their project. The service costs $379, but they guarantee at least that much in pledges. If you don’t earn $379 or more through BackerClub, you don’t pay for it!
- CrowdOx – CrowdOx is a post-Kickstarter fulfillment service that combines fulfillment surveys with an advanced checkout process, letting backers add-on additional products, meaning more money for you even after the campaign ends!
- HeadTalker – HeadTalker makes it easy to spread the word about your crowdfunding project! Just create a HeadTalker campaign and invite those in your network to join. When you hit your goal on your specified end date, your message will go out to all of their followers on social media.
- Cyfe – Measure the effectiveness of your Facebook ads with Cyfe reports! The dashboard reports on all the metrics you’ll need, including cost, impressions, clicks, click through rate, cost per action and more.
- Hyperstarter – Hyperstarter is a free tool that helps campaign owners and project creators identify problems on their Kickstarter page, and offers instant, free advice on how to fix them.
- The Gadget Flow – The Gadget Flow is a product discovery platform that helps you discover, save, and buy awesome products. It is the ultimate buyer’s guide for cool luxury gadgets and creative gifts, making it a great place to share your Kickstarter project. List your product.
- BackerLand – BackerLand is a community of crowdfunding super backers who are always looking for the next big project to support. In our experience, project creators who submit their project with a special reward for BackerLand members see the platform bring in an average of $1,337 with an average ROI of 453%
Keep these simple-to-use, relatively inexpensive tools in mind for your next crowdfunding project. We’ve found them to be incredibly helpful when it comes to creating and promoting a successful Kickstarter or Indiegogo campaign. If you want to enhance your personal efforts while managing your own crowdfunding campaign, consider using these tools in conjunction with consulting services from an experienced crowdfunding agency.
For more tips, subscribe to our crowdfunding podcast.