So you’ve managed to successfully launch a fantastic crowdfunding campaign for your product. Your page is trending, mastered storytelling your product, feedback is more than positive, partners have approached you, press have discovered you, influencers love you and the whirlwind of success goes on. Fast forward a few weeks in, your sales have slowed despite the continued positive feedback and media has shifted to second tier publications. Fast forward a few months further and sales have declined for the first time. You’re competing against copycats while you begin considering launching a new product despite having an amazing first product. This is not an exact depiction but with the advent of crowdfunding on popular platforms (e.g. Kickstarter, Indiegogo) together with product discovery networks (e.g. ProductHunt, Gadgetflow), they have effectively commoditised the product launch ecosystem.
There is now a playbook of sorts within this ecosystem that, if it is abided, a successful launch is achieved. The ecosystem has grown so much so, that the upfront requirement of campaigns has become an absolutely necessary, involving significant investment into marketing, design, time and effort. This was not true when these platforms began however as the platforms grew, social media and digital marketing became more sophisticated, new methods and channels emerged to drive traffic.
These developments led to the ecosystem we have today but it is somewhat incomplete. There is no single or defined way to sustain the growth of product once launched and, even worse, beyond the timeframe of a campaign. Sure, the ecosystem can publicise your product again or it disseminates into the press or is picked up by influencers. But these do not necessarily convert into growth in sales revenue whether monthly or yearly. The conundrum is certainly not limited to the product launch ecosystem. This rapid route to market places additional pressure on the founder or founding team to find ways to sustain growth, preventing a crash and burn of what could have been a solid business.
If you want to launch a product successfully post-campaign, more needs to be taken into consideration. The current ecosystem is limited in support beyond the initial weeks of the campaign. Paid digital marketing has become the conclusive method to advertise and promote. Especially to grow beyond a product launched via campaign into a viable business. However, few entrepreneurs have a sizeable digital marketing budget or the know-how to convert their budget into actual sales. To sustain growth, entrepreneurs tend to recruit digital marketing expertise or outsource to an agency. Both of which require significant capital to achieve results. Capital can be sourced by sacrificing equity or a loan could be raised, however early stage businesses and startups will find stringent terms terms for debt capital. With these difficult decisions, growing beyond a campaign presents much of the age-old challenges of all businesses and commercial ventures.
Our approach with the Velocity Program is a hybrid one, where we fund digital marketing spend for entrepreneurs. By doing this, you can acquire more customers and increase sales. Entrepreneurs can override the average campaign trend and grow consistently into the future. This is a unique and practical alternative that addresses the needs of early stage businesses that have the hunger to grow into a fully-fledged business.