Is Crowdfunding Right for your Company?

Is Crowdfunding Right for your Company?A decade ago, independent-minded entrepreneurs might have scoffed at the idea of asking the public to fund their latest project. Today, more than ever companies are turning to crowdfunding sites like Kickstarter, Indiegogo and Fundable to help turn their start-up dreams into reality. These sites allow companies to connect with potential investors by making them part of the development process, whether they’re a tech start-up building a new product or a chef opening a restaurant.

There are plenty of benefits to crowdfunding, but it’s not necessarily the right choice for every company. Here are four questions you should ask yourself before embarking on a crowdfunding campaign.

1) Are you in it for the right reasons?

While the main goal of crowdfunding is to raise money for your project, don’t make it all about the money – it’s about more than just getting something for free. Benefits of a campaign include promoting your company and product, connecting with new customers and learning about their needs and wants. Savvy customers will sense whether you’re truly invested or just out to make a quick buck.

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Celebrity Marketing: Fantastic or Fail for Business?

Celebrity Marketing: Fantastic or Fail for Business?If events like the Super Bowl are any indication, celebrity endorsements are just as powerful a promotional tool now as they were when Babe Ruth first plugged Red Rock Cola. From Stephen Colbert cracking up over pistachios to Ben Kingsley’s ominous urge to drive a Jaguar, big business continues to shell out big bucks for associating well-known faces with their brands.

But is the long-term risk really worth the short-term gain?

When it comes to marketing strategies, celebrity endorsements are one of the biggest gambles a company can make. Should the star continue to appeal to both the company’s core consumer and increase sales to their target consumer, the celebrity’s contract cost will be a drop in the bucket compared to the profit increase. But if that star slips up, well, we’re all pretty aware of the consequences.

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