Crowdfunding

Crowdfunding is an alternative example of a pre-sale strategy - more specifically for physical goods. This approach allows you to set a pledge amount you need in order to fund the production of the goods. If you meet the pledge goal the money will be released and you can start producing the product.

Measurable items

• Number of pledges • Average pledge amount • % of goal complete • Social shares • Conversions based on traffic source

Business model

Advantages

✅ Allows you to receive funding to create your product before investing time and money into creating the product before you know if anyone would buy it ✅ Provides great exposure, SEO and traffic to your site ✅ Save time and money creating the product before testing desirability

Disadvantages

❌ You need to ensure you can manufacture the product or at least create the product before asking for the pledge amount ❌ Expensive to pull off. The digital assets required can cost a lot - designed mockups, renders and especially the explainer video.

Useful links