Every good entrepreneur must be able to notice differentiating elements of their product and communicate it to customers. This is the purpose of the value proposal. In the case of crowdfunding, an effective value proposal is needed that explains the importance of the campaign.

The value proposition is a declaration addressed to the masses, in which the product is explained and why it is innovative in the market. This explanation must be simple and easy to understand, so that it calls the attention of the large communities. This practice is used for the Business Canvas Model, a business planning strategy.

The aspects taken into account for a the declaration of entrepreneurship are: novelty, price, quality, design, convenience, among other factors. This is not far from what should be expressed in the message of a crowdfunding implicitly.

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Example Value Proposition. Source: Peter J Thomson

Even so, in the case of collective financing campaigns there are certain details that can not be overlooked, if you want to have an effective value proposition.

Value for donors

Here the differentiating element of your product or your campaign is expressed, it is very important that it is easy for the patrons to understand, since it is very difficult to sell a product that is not understood. In this section we answer the question: What do we offer the market?

For example: If your campaign is about a new toy: a remote-controlled helicopter that does not need batteries. In this case it should be said that this is the toy that would be flying through the air for an indefinite time.

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Solution to a problem

The solution to the problem or the need that satisfies is posed, here also the innovative element of the campaign must be specified. This item answers the question What problem are we solving?

Continuing with the example of the toy, with the helicopter it could be said that the innovative aspect is that it does not need batteries and that I could fly for as long as the child wants, I would not have to change batteries to continue playing.

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Rewards Offered

In previous articles we have talked about the importance of the rewards and that they are necessary for people to want to donate to our campaign. These rewards must be specified in the value proposal, for which you must answer the question: What are we offering our donors?

In a campaign about a toy like the helicopter, the most ideal is that the rewards are extra things of the product, that is, that from a certain amount the helicopter is delivered with another detail that attracts attention, could be an action figure or some toy customization.

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Satisfied needs

This part answers the question: What are the satisfied needs? which is closely related to the solution, but is more directed to the type of market or perspective to which your campaign is directed.

In the case of the helicopter, it is filling a need for leisure, because it is a recreational product. It should be noted that recognizing this type of need that satisfies facilitates the generation of attractive rewards.

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A good value proposition will guarantee the fulfillment of the campaign goal, in the form of advice, this statement should be shown to friends and family and see if they are able to explain the initiative in their own words. If the result is positive that means that the message is well formulated

If you want to help someone to create their crowdfunding campaign you can share how this entry is filled with knowledge about this type of financing.

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A crowdfunding with a wonderful value proposition!