Why Content Marketing is the Driving Force Behind Successful Crowdfunding Campaigns

January 13, 2021
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In 2015, marketing zeitgeist Seth Godin famously declared that “content marketing is the only marketing left” and his immortal words ring true(r) today—particularly in the crowdfunding ecosystem. Content marketing is about educating your consumers and giving them the resources to believe you. Since the JOBS Act cleared a new path for raising capital, entrepreneurs and small businesses alike have been finding more success in the crowdfunding realm, because they can forge authentic connections directly with their audiences, while building trust. 

Slow and steady wins the race

When discussing Kickstarter campaigns, Seth expanded on “The Grand Opening” belief, which finds that having a splashy launch brings success. This may feel normal because of campaigns we see in the news, but actually, it’s the folks who devote themselves to building trust with their audience who ultimately meet their goals. What appears on the surface to be an “overnight success”, is in fact the tail-end of a dedicated effort to spread ideas, educate and empower their audience. Making a big splash without any substance is a short-term, hollow win, which serves only to erode goodwill. 

The social capital derived from trust is the most powerful marketing resource available. It can be harnessed most fruitfully in crowdfunding campaigns, where participants seek to feel a connection and support businesses that matter to them.

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Content is king

According to Entrepreneur, small companies witnessed “the highest return on leads when they blogged more than 10 times per month”, which highlights the efficacy of content marketing. In a world where consumers have unlimited choices, small companies have been ravaged by the pandemic and digital giants gobble up advertising dollars, sharing ideas is the antidote. By investing in content that inspires and educates, crowdfunding campaigns avoid competing with the behemoth advertising budgets of monster companies like Nike, and instead, carve out their own enthusiast audience. There’s no need to fly to Silicon Valley to impress angel investors, when it’s possible to have meaningful connections, serve your audience and raise money via crowdfunding online, from anywhere across America. 

Believe in me

Whether you’re an entrepreneur with a large social media presence, or have strong community ties, content marketing makes it possible for the 99% to gain traction, collect investment dollars and make their dream a reality in the crowdfunding space. It’s likely not a coincidence that in 2020, the average success rate for companies raising money via crowdfunding was 63.7%, compared to 2% over in venture capital. 

It seems crowdfunding campaigns understand the repeatable ‘magic’ formula of putting in the work of educating consumers, providing them value, and earning their trust through exceptional content. Who woulda thunk! 😜

2021 is shaping up to be a banner year for crowdfunding. If you’re curious to learn more about investing in and via equity crowdfunding, check out TruCrowd’s online investment portal

Connect with us today to learn more: info@digitalamn.com

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