There are a lot of different reasons why crowdfunding has become a popular way to raise money for projects. According to Grant Lawson of InventureX, he believes that there are psychological triggers in particular that are really starting to grab the attention of others.
Psychological triggers are certainly nothing new, but how exactly are they used in crowdfunding? We were able to ask Lawson a few questions on that exact issue.
At InventureX, you are the chief crowdfunding strategist. What is your main focus during a typical day?
I really help with figuring out ways to not only market crowdfunding projects correctly but reach out to potential backers as well. Sometimes, it seems like an uphill battle at first to get people to buy into a new product. Other products simply sell themselves, so it is a little easier. Strategy is different with each campaign we work with.
For campaigns that might be slow to take off at first, what are some psychological triggers backers react to in a positive way?
Throughout time, people have always reacted well to feeling like there is a true sense of urgency. Anything that is labelled as a limited offer or something that only is going to be around while supplies last is a great way to grab attention.
There are a lot of people who are constantly looking at different crowdfunding websites, trying to find something that they feel really confident about early on. There are some people who really become driven by this focus on being one of the first to discover something revolutionary.
When are you most likely to use psychological triggers to help out a campaign?
They mostly come in the play at the very beginning and end of a campaign. That is because we are either trying to get something off the ground early on or meet deadlines at the very end.
A lot of people who invest in crowdfunding campaigns seem to react the same way. If a person is not super early getting on a new idea, they wait until the very end. Some people like to be that final backer that fulfil an idea, so it is almost a race at times.
How do perks help out when it comes to crowdfunding?
Perks are a great way to really encourage people to support a crowdfunding campaign. Maybe they are on the fence, but if they know only the first 100 backers are going to get the best deal and an added bonus, they are much more likely to jump on that opportunity.
Is there any way to create urgency after a campaign has been fulfilled?
There are always ways to customize the goals after the fact. Some people will create stretch goals that are great for those people who are late to the party. Nobody wants to be left out, so giving them a little bit of a perk can go a long way towards getting that extra money and support.
What is the secret sauce of InventureX that enables you to execute all these successful crowdfunding campaigns?
We’d like to keep it a “secret” and use it as our competitive advantage. But you can schedule a call with us to get a free consultation with our team of crowdfunding experts to discuss your business ideas.