Psychology

In the end you’re selling to the brain of your customer. Understand how it works , how to best get your message across and get people to take action.

Psychology of crowdfunding

Crowdfunding is painful.

With standard conversions, people receive value immediately. They buy your product. Then they receive your product. Done and done.

That’s not crowdfunding. With crowdfunding, the end product doesn’t even exist. You need to convince people to give you money for something that they won’t receive for months (and possibly longer).

Sure, you can use perks and rewards to entice people. But the majority of donations come from people’s generosity. How to get more funding? What are crowdfunding best practices?

I scoured the academic research on crowdfunding, philanthropy, and helping behavior to understand when and why people donate money (and how you can use those principles for a successful crowdfunding campaign).

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How Creating a Sense of Urgency Helped Me Increase Sales By 332%

A few years ago, I launched a kind of “Groupon deal for musicians.” I gave away $1,250 worth of products, including recording time, iTunes distribution, and a guitar-string endorsement deal for just $69. The deal was good for only 100 hours, and there were just 5,000 packages available.

I had invested a lot into the campaign. Not only had I spent four months putting it together, but I had also put a significant amount of my personal savings into ensuring that this campaign was everywhere during those 100 hours.

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burger king bundle

It’s the early 1980s. You’re in charge of a fledgling ESPN, and you have two choices:

  • Add more college basketball—you’re highest-rated programming—to the schedule.
  • Stick with the skiing and billiards you’ve aired for years (because you couldn’t afford anything else).

Which creates the more profitable programming bundle?

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