How Crowdfunding Can Help Market Your Business
You already know that crowdfunding can be an awesome way of getting the money you need to grow your business, but did you know that it can also be an invaluable marketing tool for your business? For small businesses, getting the word out about the business is everything, but marketing is also one of the most difficult things that entrepreneurs deal with. Read on to find out how exactly running a debt crowdfunding campaign can help you market your business to your current customers and to new ones.
Running a debt crowdfunding campaign is new and exciting
Most people have heard of crowdfunding in the sense of rewards crowdfunding - platforms like Kickstarter and IndieGoGo. While they might be aware of that kind of crowdfunding, they probably don’t feel too strongly about it one way or another. That’s because there’s really no incentive in donating to a rewards crowdfunding campaign.
Debt crowdfunding, however, is a new opportunity for most people. It’s only been legal since 2017, with the signing of the JOBS (Jumpstart Our Business Startups) Act, after all. If your business offers the public an opportunity to invest in a debt crowdfunding campaign, it can indicate that you’re on the cutting edge of business financing - after all, the potential to receive a return on your investment is a whole lot more exciting than donating $50 that you’ll never see again to a business.
Inviting customers to invest can strengthen your customer loyalty
Another important element of marketing is continuing to reach your current customers and build up their loyalty to your business. Running a debt crowdfunding campaign is an incredibly effective way of strengthening your customer relationships and building new ones as well!
When you invite customers to invest in your business, you’re basically saying, “I value your business so much that I want to pay you to be a part of our growth.” It gives your customers, who already love your business, another reason to love it, and an opportunity to tangibly express their interest in you in a way that gets them a return.
We call the change in customer dynamic after they invest the shift from customer to “brand advocate.” Brand advocates are more likely to come back to your business time and again and become regular customers. They’re also going to tell their friends about your business (and your investment opportunity), bringing you more customers. Furthermore, having a deeper relationship with your customers could potentially bring you more professional opportunities - maybe a collaboration you didn’t expect, or the opportunity to put your products in an investor’s store.
Honeycomb campaigns get more press mentions
Remember what we said about debt crowdfunding being new and exciting? That means that businesses that run debt crowdfunding campaigns are also more likely to get press mentions. Newspapers and local magazines are always looking for interesting opportunities in the community, and showcasing a local business’s growth and an opportunity for the public to make a little money is a pretty big scoop!
Honeycomb campaigns get on average 80% more press mentions for their business when they run a campaign. This is especially true when they’re a business that’s in a city that has never had a Honeycomb campaign before - first movers often get more attention!
You get the chance to tell your business’s story in your own words
Another marketing advantage that you get when you run a debt crowdfunding campaign is you have the opportunity to promote your business and your growth in your own words. We work with you to shoot a promotional video for your campaign, as well as write your campaign page where you can tell your story. This kind of marketing material is priceless to businesses, and you can use it for your own marketing beyond the Honeycomb campaign, if you’d like.
You can reach a national network of small business investors
While our whole thing is that Honeycomb campaigns are fantastic for building up community wealth, helping you get the money you need to grow your business from investors in your neighborhood, we do have a secret weapon: the national network of Honeycomb investors.
There are investors who may not live in your community, or even your state, but will take an interest in your business and potentially invest in it. If you’re trying to reach a national audience, running a Honeycomb campaign might be one way to start that launch.
One example of this is Noble Pies, a bakery in upstate New York, who ran a $91,850 campaign to open up a second location of their bakery. Their next goal is to ship their pies nationwide using the QVC network, and their campaign was a great way of marketing this new offering to a national audience.
Marketing + Growth Capital + Strong Customer Relationships
This is the formula for what makes Honeycomb stand out from the other crowdfunding platforms. No other platform will champion your business as hard as we do, or get you the attention you deserve. Learn more about running a Honeycomb crowdfunding campaign by filling out the form below: