Why do some crowdfunding campaigns get funded in their first few days while others limp to the finish line without success? Getting pumped up for a great crowdfunding campaign will not guarantee your success. Almost 60% of all campaigns fall short of their funding goals, so the odds are already not in your favor. If you want your next efforts to be a stud instead of a dud, then avoid these five mistakes and you’ll increase your chances of success.
1. You Start Off Too Slow
Crowdfunding is essentially governed by mob rule. When you get a crowd, you’re going to get more of a crowd. This is why it is so important to focus on a fast start – one where you can achieve 30% of your overall funding goal within the first three days. You have to go beyond your inner circle of support by marketing to local prospects that might be interested in what you got to offer in order to make this happen.
2. Backers Think of Their Pledge As A Donation
Most backers are not giving money to a crowdfunding campaign because they want to back a charitable cause. They are doing it because you have offered them something tangible in return for their pledge. If you don’t follow through or have your products delayed, then your reputation will take a nosedive and you might be stuck with an unsuccessful campaign in the future.
3. There Is No Work Put Into The Campaign
One of the biggest mistakes by far is to allow a crowdfunding campaign to operate on autopilot. There will be questions that need to be answered and there will be prospects that need to be engaged. If you ignore these people, then how can you expect an investment from them? Stay active in your campaign throughout the entire process and in doing so, you will give yourself the best chance for success.
4. It’s All Online
Most of the work that happens behind a crowdfunding campaign actually happens off-line. The same networking efforts that have greased palms for decades still work to create interest for an online crowdfunding campaign. Hosting barbecues and sending out press releases are just as effective as sending out emails and creating videos when it comes to sparking an interest in certain demographics. As long as you can identify the communities of interest that you have locally, you will be able to find more funds.
5. You Stop Asking For Investments
So much work is put into all of different campaign materials during a crowdfunding effort that one key component is often forgotten: asking people for money. People are more likely to send an investment your way if you would just ask them for something. At the core of crowdfunding is a philanthropic effort and if this is recognized and encouraged, more money may be pledged.
Crowdfunding is a lot of hard work, but it can also be wildly successful. Just ask Coolest, who raised over $13 million – you can be successful, even if you have failed before. Avoid these mistakes and you’ll be ready for success.
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