Growthink Blog

How Freudian Thinking Allows You to Raise Crowdfunding

Print
Categories:

The influence of the crowd is a major factor in Crowdfunding, as psychology often plays a role in the failure or success of a Crowdfunding campaign.

Crowd psychology is a form of social psychology. Regular people are generally able to gain power by acting as a group. It has been shown through history that big groups of people have brought about sudden and dramatic social changes in a way that sidesteps traditional due process.

Social scientists have come up with a number of different theories to explain crowd psychology. In addition, scientists have also come up with several different theories regarding the way that crowd psychology is different from the psychology of the individual within that crowd.

Freud on Crowd Behavior

First, Sigmund Freud had a crowd behavior theory. He believed that people in a crowd act differently than individuals. His theory was that the minds of everyone in the group merged to form a new way of thinking. The enthusiasm of each member of the group would increase, and he or she would become less aware of the nature of their actions.

What this means for your Crowdfunding raise: Create a community around those who provide Crowdfunding to you. Use the community to make these people zealots. Encourage them to spread the word about your company so more and more people support you.

Communal Reinforcement

One amazing social phenomenon that happens within a crowd is communal reinforcement, in which an idea or concept is asserted repeatedly, even when there is limited evidence to support it.

As time goes by, the idea or concept becomes reinforced into becoming a stern belief in the minds of many people and can often be regarded as fact by members of the group. Imagine how persuasive you could be by actually showing them the evidence to support your promises (and you should)!

What this means for your Crowdfunding raise: When setting up your Crowdfunding platform and profile, choose a main message and repeat it over and over-in your headline, in the description, in your video, and in your comments. Repetition sells!
 
Social Proof

Online crowds come together virtually. They act and behave collectively, producing effects that would not otherwise be possible if they were approached by themselves.

But they need to see social proof. No one wants to be the first one to donate (except your mom), but if they see that others are doing it, they'll perceive it as more legitimate and will be more likely to fund you.

What this means for your Crowdfunding raise: Don't tell the masses about your Crowdfunding raise at first. Rather, start with your friends and family members. Then, when folks who don't know you come to your Crowdfunding page later, they'll already see a lot of others who've pledged their money to you.

Likewise show as much activity on your Crowdfunding page as possible. Let people see your comments as you answer questions and repeat your message. And make sure to publicly thank those who made donations and make sure people see the progress of your funding as you receive it.

When you raise money from sophisticated angel investors and venture capitalists, there is a lot of psychology involved. When raising Crowdfunding, it's even more so. So, keep this in mind and leverage it. And you will be able to raise Crowdfunding to start and/or grow your business.


Share this article:


Most Popular
New Videos

"Business Plan
SHORT-CUT"

If you want to raise capital, then you need a professional business plan. This video shows you how to finish your business plan in 1 day.

CLICK HERE
to watch the video.

"The TRUTH About
Venture Capital"

Most entrepreneurs fail to raise venture capital because they make a really BIG mistake when approaching investors. And on the other hand, the entrepreneurs who get funding all have one thing in common. What makes the difference?

CLICK HERE
to watch the video.

"Brand NEW
Money Source?"

The Internet has created great opportunities for entrepreneurs. Most recently, a new online funding phenomenon allows you to quickly raise money to start your business.

CLICK HERE
to watch the video.

"Old-School Leadership
is DEAD"

"Barking orders" and other forms of intimidating followers to get things done just doesn't work any more. So how do you lead your company to success in the 21st century?

CLICK HERE
to watch the video.

Blog Authors

Jay Turo

Dave Lavinsky