Contemplating On Using A Celebrity To Endorse Your Crowdfunding Project? Read This First.

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If you are a project initiator trying to manage a crowdfunding project, there is a good chance that you are looking for ways to get noticed by your investors and market. If there are anything movies and tv has taught you is that celebrity endorsement is usually a big help. The product gets noticed by a lot of people when there is a famous person telling them about it.

This is a strategy often used by big companies to be noticed more especially when they have new products in the market. You are often bombarded by television commercials in between your favorite tv show. You also get to listen to them on the radio telling you how great a product is. While scrolling down your social networking page, you see their ad. Even while you are playing your favorite mobile game, you see their ads in between.

You remember the product because a famous person is telling you about it. Their celebrity status is used as a pedestal to bring awareness to a product. If you are running a crowdfunding campaign, you dream of being able to do that. But using a celebrity as an endorser of your project might not always end up as you intend it to be.

Getting celebrities could adversely affect crowdfunding project

It might be surprising but here are a few instances where getting a celebrity to endorse your campaign might do you more harm than good.

  • Not the crowd you want. Each celebrity is famous because of the massive following he or she has. This allows them to have a wide network and puts them in the best position to endorse to a wide network. But you need to look at the crowd that they are able to draw and if they are in line with what you are offering. If you are trying to promote a revolutionary product that is used by adventure goers, it might not be a good idea to ask the services of a celebrity known to be a home buddy.
  • Negative publicity ripples out on your project. The upside to getting a celebrity to endorse and let the public know about your project is the fact that a lot of people will instantly know about it. However, the same thing happens when the celebrity you contracted does something that is bad for publicity. It attracts a lot of attention and can affect your project as well.
  • It can set you back financially. One thing that makes celebrity endorsements viable is because the result is almost always positive because of their pull. This is also one of the reasons why they can demand a high talent fee from the companies that are getting their services. This is an amount any multinational company would have in their marketing budget. The question now is where will you get the money to pay for celebrity endorsements when you are still crowdfunding the initial stages of your business?
  • Investors might think the money will just be used as talent fee. Even if you get a celebrity to agree to do the work for free or even for a fraction of the cost, people could have the impression that a big chunk of the money you are raising would just go to paying the endorser. This leaves a sour taste in the mouth and could even make some investors turn their backs and look for other crowdfunding campaigns.

 

This article is written by the Crowdfunders Editorial Team. In Asia, Crowdfunders.Asia is a leading portal on providing news related to crowdfunding, start-up, property and business. It is operated by CoAssets.com. CoAssets is South East Asia’s first listed and largest real estate crowdfunding platform. If you have any Crowdfunding news or stories to share, please email [email protected]

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