Using the AIDA Marketing Model for Equity Crowdfunding Success

4 Ways to Win Over Crowdfunding Investors

equity crowdfunding marketingEquity crowdfunding is a very competitive game. The key to victory is to market your campaign and win the attention of the crowd. This critical element of equity crowdfunding may be difficult for some entrepreneurs but you don’t need to be a marketing guru to achieve success. The great thing about equity crowdfunding is that all of the investors on your portal are already interested in equity crowdfunding. They signed up to find excellent opportunities (like yours) to invest in. This is huge for you – the heavy lifting is done. Now all you need to do is grab their attention, build interest, create desire and make them take action. The actions I just mentioned are part of a tried-and-true marketing model of consumer engagement: AIDA. The acronym stands for Attention – Interest – Desire – Action and has been around for over 100 years. The AIDA sequence of events is how you reel in a customer, or in your case, an investor, from start to finish. This philosophy is a direct match for equity crowdfunding and we are going to tell you how you can use it to your advantage. Here is an explanation of how the AIDA model can work for equity crowdfunding:


Equity crowdfunding portals are a bit different from traditional advertising, but the first step to success will always be to grab the attention of your investors. Whether they find you from a categorized search or your campaign is shared from a friend on their network, you will always need an attention-grabbing headline or blurb to raise an eyebrow. To do so you will have to factor in who your target audience is, what they would want to read and speak their language. After they click the link to your campaign, it’s ShowTime! Your headline and lead paragraph are the most critical words of your entire pitch. These sentences will not only attract but capture the attention of your audience and assure them it is worth their time to read the rest of your campaign. Please visit the following link for more great advice on this topic: how to use the AIDA formula to boost your content marketing strategy.


Once their attention is yours, the next step is to build interest in your product, company or campaign. For example, if your equity crowdfunding campaign is raising money for another location for your restaurant, start to highlight all of the research you’ve done. Describe why this new city has the perfect demographic, show reports of other successful restaurants in the area and so on. You need clearly explain the value of the equity being offered – this will build interest. One of the best ways to build interest with your audience is a cleverly crafted video. Last month we shared some tips on creating a successful equity crowdfunding video and you should definitely make yourself familiar with this advice. Short, informative and persuasive videos are the perfect way to entertain and influence your crowd. If you create the right video, their interest is all yours.


equity crowdfunding desire The transition from interest to desire is certainly interconnected. Of the four stages of AIDA, it is arguably the most important. You must create desire by making the investor “want it” instead of “like it.” It’s one thing to make your audience say, “Yeah, that’s pretty interesting. Wow.” It’s your duty as an equity crowdfunding issuer to make them say, “Wow, this is amazing. How do I get in on this?” One surefire way to create desire is to promote the projected earnings of your product or company. Equity crowdfunding pledges are investments in return of equity. Investors are giving you money so you can turn their investment into more money. Nothing is more desirable than to see reports and graphs of your projected earnings in your business plan. In fact, a skillfully written business plan can create desire in even the most disinterested visitor to your campaign page. We recently wrote a four blog series on how write a business plan, click here for the first chapter.


Now that you have your audience wanting to buy equity, it’s time for them to take action. The one exact trait equity crowdfunding and traditional marketing AIDA models share are call-to-actions (CTA’s). All good CTA’s are simple yet powerful statements that lead your audience into taking action right here, right now. If you have them in a state of desire you cannot let that moment pass. A quality CTA will let them know clearly and concisely, “click here and let’s close the deal now.” At truCrowd Texas we offer assistance with setting up your equity crowdfunding offering and can offer advice on your campaign as well. It’s our mission to have every single campaign reach its goal and our experts are ready help our issuers make it happen. Many entrepreneurs may excel at their particular industry but don’t know the first thing about marketing – don’t worry. Call us, send us an email or strike up a chat on our website and a truCrowd Texas representative will be happy to help. Thank you for reading and please leave your questions and comments below!

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