Investment Crowdfunding – Part 15 of 20+ Series – Promoting the Campaign
Karl Dakin
Capital Coach | Stakeholder Investor Campaigns | Design, Stage, and Manage or Support | Reduce Time, Money, and Risk of Raising Funding | Increase Probability of Success! | Opportunity Management
Most small businesses pick a number out of the air and call it their capital goal. They then default to an equity offering the potential to share in the future profits and nothing else. The promotional program amounts to spamming as many people as they can afford mailing lists who do not know the small business, do not care about the small business, and will never invest in the small business. The only two metrics used in determining the success of the campaign are the number of digital impressions created and the number of dollars received. Commonly the number of digital impressions is high and the number of dollars received is low or none.
?I received a pitch via a message on LinkedIn this morning promising to help me find the right franchise opportunity. As is my practice when receiving unsolicited proposals from people who don’t know me and did no due diligence on me, I stated ‘no interest’ and deleted the conversation. If the person had requested a Connection before spamming me, I will terminate the Connection.
?So, what’s the harm of promoting your capital campaign by sending out tens of thousands of untargeted emails, messages, or other digital communications to people I don’t know?
?This form of communication is disrespectful to the recipient. It may fairly be interpreted as “I don’t care about you. All I care about is me. I do not mind wasting your time. All I care about is me.”
?When I have brought this to the attention of some small business owners, they have shrugged their shoulders and provided a variety of responses:
·?????? I need investors
·?????? It was inexpensive
·?????? How else am I going to make people aware that I am raising money
Another new bad trend is businesses sending a personalized email that starts using my first name and then continuing as though we were previously in a conversation that had been temporarily interrupted. This person does not know me. The use of my first name is intended to get past my default rejection of their communication. Which it does. However, I now feel deceived. I am not just annoyed that someone just wasted my time, but they are trying to cheat me.
?Unfortunately, if I don’t respond to the above email, is get a follow-up email which is critical of me for not responding to the first email. This practice is call a ‘pitch slap’. Somehow, someone believes that insulting me will incentivize me to take action and buy something from them.
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Where these bad practices may work with selling products and services, they will not be successful in raising capital. A purchase of an investment is held to a higher standard. Because of the time between purchase and reward and the risk that the investment may be lost, investor candidates want to trust the small business. This is almost impossible with communications sent blindly to anyone who breathes.
?My three key factors to Instant Funding are: (1) the investor candidate is known to you, (2) the investor candidate has the capital resources you need, and (3) the investor candidate is motivated to place their money at risk. An unsolicited proposal to invest fails the first factor and likely reduces the third factor.
?Small businesses cannot afford to waste time pitching to anyone who will never invest.
?Motivated Money Half-Day Workshop
?Subscribers to the Instant Funding Newsletter are invited to attend a half-day workshop where I will present my Motivated Money Method to raising capital. Subscribers qualify for a 20% ($100) discount from the standard $500 price. Use the discount code: Instant Funding
?Thursday, February 29 - 9 am to 1 pm MST - Zoom Online
?The workshop will instruct on the Motivated Money Method of raising capital that targets investor candidates who are 'most motivated' to provide needed capital. Attendees will receive a workbook, templates, and a video recording of the workshop. A single organization may have up to three representatives participate for the registration fee.
??Successful Funding Show
?Join me tomorrow, February 6 at 8 am MST for the next episode of Successful Funding on LinkedIn Live. I'll be joined by Devin Thorpe, the champion of social good, to discuss the use of investment crowdfunding to create impact. Devin is the founder of SuperCrowd, an organization that operates an impact investment club and produces online programming and live events that bring together the leading experts on impact and investment crowdfunding. His insights and experience in the field are not to be missed! Don't miss this opportunity to learn and engage with us. Follow the link below to join us live. https://lnkd.in/gbNUEEqt
?The Successful Funding show will repeat weekly at 8 am MST on Tuesdays on my LinkedIn profile.
?Don Cohen
?I will be a guest again on Don Cohen’s show (Monday through Friday at 9 am MST) on Wednesday at 9 am MST. ?I engaged Don as a coach to help me set up the Successful Funding show on LinkedIn Live. He has been assisted by Kelle Steinecke (The Awesome Journey Show) and Harvey Tuck (The Franchise Show) who have been mentoring on the use of LinkedIn, the publication of the Instant Funding newsletter, Restream, and guest management.
Founded in FOCO
?I will be presenting a workshop on the topic of What is Your Funding Potential? on March 8 from 11:00 am to 12:30 pm in Fort Collins, Colorado at the Founded in FOCO event.
?SuperCrowd 2024
?I will be co-hosting the SuperCrowd 2024 event: “The Impact Crowdfunding Event of the Year” which will be held April 17th and 18th online.
?Subscribe
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Karl Dakin, the Capital Coach
Dakin Capital LLC
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Absolutely! Engaging storytelling is key, as Maya Angelou once said, "People will forget what you said, people will forget what you did, but people will never forget how you made them feel." ?? Speaking of making a difference, Treegens is proud to announce a sponsorship opportunity for the Guinness World Record of Tree Planting. It's a chance to be part of a story that leaves a lasting impact on the planet! ?? Check it out: https://bit.ly/TreeGuinnessWorldRecord
Capital Coach | Stakeholder Investor Campaigns | Design, Stage, and Manage or Support | Reduce Time, Money, and Risk of Raising Funding | Increase Probability of Success! | Opportunity Management
1 年Promoting your capital campaign must communicate to people you don't know in a way that builds trust.