Have you ever wondered how to validate and test your product or service idea without taking on excessive risks?
Look no further because crowdfunding may just be the game-changer you’ve been waiting for. In a recent episode of the B2B Breakthrough podcast, host Sharon Gai sat down with Will Ford, the president and co-founder of LaunchBoom, a consulting company that specializes in launching consumer products through crowdfunding platforms like Kickstarter and Indiegogo.
Together, they explore the world of crowdfunding and how it can revolutionize the way entrepreneurs validate and test new products with less risk. Will shares his expertise in crowdfunding, product ideation, marketing, and fulfillment, offering valuable insights and practical strategies for launching successful campaigns.
But what exactly makes crowdfunding such a powerful tool for product validation?
Table of Contents
How crowdfunding derisks product launches
A focus on pre-launch preparation
The evolving landscape of crowdfunding
The cost of crowdfunding
Will’s advice for people wanting to monetize their ideas
Wrapping up
How crowdfunding derisks product launches
Will explains how, around 2009, Kickstarter and Indiegogo emerged as crowdfunding platforms. He was fascinated by the concept of pre-selling prototypes to global backers on these platforms, so he immediately launched new projects. This approach allowed entrepreneurs to validate and test products with minimal risk by pre-selling and raising funds before manufacturing.
Successful campaigns could leverage economies of scale, placing larger orders with manufacturers at lower unit costs, thus increasing profit margins. Crowdfunding significantly de-risks product launches, benefiting both creators and consumers by allowing thorough validation and testing before production.
Crowdfunding is a smarter, safer, and more efficient way to bring a product to market. So why aren’t more entrepreneurs considering crowdfunding as a validation and testing method? Will attributes this to a lack of education and familiarity with the crowdfunding process.
A focus on pre-launch preparation
Will highlights that over the past decade, LaunchBoom has transitioned from an agency to a coaching and consulting model. Two years ago, they developed more consumer-friendly technology to affordably support product creators on Kickstarter and Indiegogo, enabling them to reinvest profits into their businesses.
Their new system helps clients micro-test pricing and identify their ideal buyers through a sophisticated pre-launch system with AI integrations. The company conducts market research and helps startups with product positioning and pricing strategies. With a database of over 10 million backers, they can create targeted advertising campaigns, significantly reducing costs and maximizing campaign outcomes for their clients.
The evolving landscape of crowdfunding
Sharon and Will delved into the evolving landscape of crowdfunding. They discussed how the early days of Kickstarter and Indiegogo offered entrepreneurs a golden opportunity to launch campaigns and raise significant amounts of money. However, as more entrepreneurs caught on to the potential of crowdfunding, competition increased, necessitating more strategic and targeted marketing efforts.
This is where LaunchBoom’s innovative approach comes into play. They focus on building a hyper-focused audience through Facebook and Instagram advertising, creating a reservation funnel that entices potential backers to place a $1 deposit for a special discount and early delivery of the product. By doing so, LaunchBoom can build a qualified audience of buyers even before launching on crowdfunding platforms.
The cost of crowdfunding
Will Ford explains that LaunchBoom’s coaching and consulting model has allowed them to offer their services at a fraction of the cost of traditional marketing agencies. This accessibility ensures that even small entrepreneurs with limited budgets can use crowdfunding to validate and test their products.
Furthermore, crowdfunding not only provides entrepreneurs with valuable market validation but also serves as a powerful marketing tool. Successful crowdfunding campaigns generate buzz and attract media attention, creating a snowball effect that can propel a product to new heights. This exposure can open doors to additional funding opportunities and partnerships, further fueling the growth of the business.
Will’s advice for people wanting to monetize their ideas
Will encourages those with new product ideas to take the leap and launch. Even if your idea is just a napkin sketch, LaunchBoom can connect you with product designers to create high-resolution 3D renders. Today, you don’t need a physical prototype to start a Kickstarter or Indiegogo campaign—just a high-res render for marketing assets. LaunchBoom can help you pre-sell units through effective Facebook and Instagram ads. It’s never been easier or more affordable to turn a product idea into a profitable business, requiring much less upfront capital compared to a decade ago.
Wrapping up
Crowdfunding has emerged as a powerful tool for entrepreneurs to validate and test their products. With platforms like Kickstarter and Indiegogo, entrepreneurs can raise funds, validate demand, and secure manufacturing partnerships, all while minimizing risks. LaunchBoom’s innovative approach and expertise in building a hyper-focused audience have revolutionized the crowdfunding landscape, making it more accessible and effective for entrepreneurs of all sizes.
So, if you’re an aspiring entrepreneur with a groundbreaking product idea, don’t hesitate to unlock the power of crowdfunding and revolutionize your product validation and testing process.
