Crowdfunding can be a great way to obtain startup funding. The only problem is that many have false assumptions about crowdfunding that cause their campaign to ultimately fail. Avoid these assumptions and you’ll have a better chance to meet your goals.
1. Media Attention Doesn’t Just Happen.
You don’t get media attention just because you send someone a press release. You might even know editors online and in print media and still get rejected. Many feel like their campaigns are worthy of news and it can be a shocking event to find out that no one but them really cares about the project. If something isn’t interesting, it isn’t going to be written about.
2. You’ll Lose Money If You Don’t Launch Right Now.
If you’ve got a good idea, then the next logical step is to start a crowdfunding campaign, right? Wrong. It takes months to get a campaign idea developed, marketed, and produced. If you’ve got something great today, then take time to develop it before presenting it. Take your time and do it right, this way you will afford yourself the best opportunity to succeed.
3. If You Post it They Will Come.
If a crowdfunding campaign doesn’t get at least 20% of their goal within the first week of it being live, it will usually not raise 100% of the funds it asks for. This means you need to bring your own supporters to kickoff your launch. It is very rare that a crowdfunding campaign is successful without creating pre-campaign awareness and gathering supporters to back their project before launching.
4. It’s Easy, Free Or It’s Really Cheap To Do.
Yes, crowdfunding is a very affordable way to bring your idea to market but that doesn’t mean it’s free and easy. To do it right, crowdfunding your idea can cost thousands of dollars to market. Then you’ve got the costs of rewards and platform fees. All in all, for small business ideas, crowdfunding might even cost more than it collects if your concept is not embraced by the crowd. It also takes a lot of time and energy to do it right.
5. Long Campaigns Are More Successful.
The bulk of your contributions will come within the first 30 days of your campaign. Studies have shown that most shorter campaigns (30-40 days) are more successful than longer campaigns (60+ days). The sweet spot seems to be between 30-45 days.
Crowdfunding can be a great experience. It can also be heartbreaking. Keep your expectations in check and do your best to succeed and it will be a good learning experience no matter what the outcome may be.