Crowdfunding is a promising method to succeeding in the entrepreneurial endeavor. While crowdfunding is a great and innovative way to fund your new business, there are necessary precautions that must be followed in order to prevent someone else from copying your new idea. In our previous article, we presented the first 8 tips for combating copycats taken from Stephen King at Forbes.com. Below are the next 8 tips:
9. Instead of inventing something new, find a product that already exists but needs better marketing.
This concept is brilliant. It’s using crowdfunding as a platform for advertising and selling. Someone recommended trade shows in China as a great place to find such products. Look for a manufacturer that is already producing inventory, but doesn’t possess the skill or experience to reach customers in the United States.
10. Focus on building a unique brand. Stand out by being highly recognizable and synonymous with quality. For example, GoPro specifically targeted its user base of sports photography enthusiasts. There are plenty of fake GoPros out there, but also plenty of fans who will pay more for the real thing. Marketing and brand building are two things copycats will not take the time nor know how to do.
11. Make or design your product in such a way that the average factory won’t bother trying to copy it. The complexity of your product is a natural defense, Benjamin Joffe points out.This could be due to the use of specific raw materials, machinery or sophisticated manufacturing know-how. Plastic injection molding is easily copied.
Side-note: I came across at least one venture capital investor who argues that some companies actually benefit from copycatting because of the additional awareness brought to the original product. At some point, the thinking goes, the customer might be able to afford the real thing.
12. Register for trademark protection in China. China is a first-to-file country, meaning trademark protection will only exist if the mark has been registered with the PRC Trademark Office.
13. Make it extremely obvious that you are the original creator. Tell your story again and again on social media and elsewhere. Make yourself indistinguishable from your invention. At the same time, focus on building a great relationship with your customers. Great customer service is one of the best ways of protecting your business in general.
14. Monitor and stay abreast of knockoffs. Yes, it’s like playing whack-a-mole. But you should still do it. Make use of the limited tools provided by Amazon, like the brand registry system it updated last year, and Alibaba. Buy counterfeit product to discover what its flaws are, then publicly describe the differences between your product and infringers online.
15. Add value beyond the product itself. Can you create a better buying experience? Think of other ways you can reward your community. When I sold guitar picks, we always included a poster or a sticker with our shipments. We also ran contests to give out prizes.
16 Consider a technological solution such as Red Points. The Barcelona-based startup (which recently raised an additional $12 million in funding) fights fakes with its deep learning software, database of the 5,000 most popular marketplaces, and relationships with retailers. Its ability to automate and assist in the takedown process means that infringers are removed on average after just a few hours.
Given these 16 tips, we hope you will be able to now make an informed decision as to whether or not crowdfunding is for you. Copycats are everywhere, and the more precaution exercised when starting your new business, the more heart-ache you will save and success you will enjoy in the long run.
This article was written by Stephen Key and modified.
