Crowdfunding would be the last place you would look at to get some quick lessons in people psychology. In fact, there is a college course dedicated entirely into it and an industry that aims to understand and explain how people are the way they are. It is a hard and long process for psychologists to understand even one person.
Social funding would not have a direct relation with the study of the human psyche but in order to succeed, project initiators need to make sense of what their market is thinking and how they would react to various offers, programs, pricing, perks and other project details they will put out. This will help them put together a more cohesive campaign with a high chance for success. But not all of the them are psychologists.
Do they hire psychologists to help them to put their crowdfunding project together to increase their chances for success? That might be a stretch but there are some long standing industry trends that can help them to put a quick assessment of their own market. It also takes a deeper understanding of their campaign and the people who would benefit from it to even have a sense of what to expect from their project.
Crowdfunding will force you to understand people
The crowd will play an important role in your success as you try and get the funding for your project coming in. Here are a few things that could help you along the way as you try to get into the minds of your target market.
- If people are backing it up, it must be good. This comes from the belief that the pricier an item is, the better it performs. Materialistic tendencies start to kick in because people want to either brag about what they have or to simply pick out the product with the best quality. In crowdfunding, one of the biggest factors is the risk and when your project is getting a lot of look Investment from people, it helps to soothe the questions of risk with potential backers. They are thinking that if there are a lot of people putting money in, it must be good. This is why you need to have a good start with your asking process and get a good traction to show other people how good your idea is.
- If it over promises, it must be a hoax. This is a double-edged sword because there are people who would snatch up the opportunity to get a lot of rewards from their investments. But there are a lot of people as well who would question all the perks and rewards that you are giving out and might even think that you are just trying to get them to invest and not follow through with the rewards. The best thing to do is to be consistent and make sure that you hand out appropriate rewards to investors.
- If it is new, it might be a shaky investment. Risk is a big factor in crowdfunding investments and this is one of the reasons why people are not too quick to back up a project. Startups possess the highest risk because they are usually carrying around an unproven business idea. The best thing to do is to be consistent with your presentations and let investors see the benefits and the returns on their investments with your project.
This article is written by the Crowdfunders Editorial Team. In Asia, Crowdfunders.Asia is a leading portal on providing news related to crowdfunding, start-up, property and business. It is operated by CoAssets.com. CoAssets is South East Asia’s first listed and largest real estate crowdfunding platform. If you have any Crowdfunding news or stories to share, please email us to [email protected]