Crowdfunding, if you’re new to the concept, is a way to raise funding for a business, idea or project by letting your audience support you. It can be a great way to get the money you need, if you understand how it works. In this article we’ll get to the root of crowdfunding by explaining the psychology behind it, or as I like to think of it, crowdfunding with Cialdini.
Crowdfunding your project, venture or idea is a bountiful idea we can thank the “scale-free degree distribution” internet for. An obscure art project can find backers in exchange for a promise of something tangible (e.g. logo t-shirt) or intangible (e.g. name embedded in movie). It can be a long dirt road to raise funds using this method, but if done right it has tremendous benefits to you, your idea and your backers.
We have been on all sides of fundraising, and crowdfunding is the slowest and requires the largest amount of time (on average). You’ll need a great idea, a scalable network, a writer, a designer, a video and a high level of resilience.
Last, you’ll need knowledge in the psychology of persuasion. That’s where Professor Cialdini and his six principles of reciprocity, commitment and consistency, social proof, authority, liking and scarcity come in.