4 Mistakes That Hurt Your Crowdfunding Campaign
January 22, 2017 Leave a comment
On some of the most popular crowdfunding platforms – such as Kickstarter, Indiegogo, and GoFundMe – less than half of the campaigns hit their funding goal. How do you make sure your crowdfunding campaign isn’t a failure? Here are four potential mistakes to avoid.
#1: Starting off too slow
If you want to hit your fundraising goal by the end of the campaign, experts recommend focusing on raising 30 percent of it in the first two or three days. That’s what research shows successful campaigns tend to do.
To make sure donors flock, get your inner circle of supporters—friends, parents, siblings and other die-hard fans—to contribute immediately upon the launch, experts say. You have to show there is some interest.
#2: Putting the campaign on autopilot
Many entrepreneurs think that viral crowdfunding campaigns happen on their own. Not so, say experts. Many of the most successful crowdfunders made all-out effort by a start-up’s founders or hired professional marketers to do outreach. Don’t expect to mobilize bloggers to spread the word on one day’s notice if you have not taken the time to cultivate their interest ahead of time.
Before you even launch a campaign, get active in social communities and figure out how to use public relations, search engine optimization and other outreach so you capture the attention of bloggers and other influencers. To make a very successful crowdfunding project, you have to figure out in advance who is going to spread the message.
In recent years, sites like 40Billion.com, which specializes in promotion, have made it easy to spread the message by broadcasting and promoting your crowdfunding campaign to its large network of several million users across the most popular social networking sites – including Twitter, LinkedIn, 40Billion, and even Facebook. Innovative services like tweet ads and promoted company listings were created for crowdfunders to tap into a growing, active network online without spending thousands on pay-per-click ads or traditional advertising.
#3: Forgetting to ask for money
Many crowdfunders put so much time into creating campaign materials, like videos, that they neglect to do something crucial: They forget to ask people for a donation or investment.
#4: Assuming supporters are altruistic
Crowdfunders need to offer attractive rewards to supporters to encourage them to tap into your idea. If people are going to give you money, you want to give them something in return that they really, really want.
Some of the most successful crowdfunding campaigns have functioned almost like an e-commerce store, taking pre-orders. One good way to revive a campaign that’s slowing is to add some new perks instead of hammering your supporters with the same old campaign materials. Any rewards you offer should underline the image of your brand that you want to create. Make sure what you’re doing is consistent with your brand experience.
Passing around a virtual hat to collect from friends and family members can feel awkward; instead, focus on explaining why your project is important and how financial support will help towards obtaining that goal. Successful crowdfunders tap into people’s desire to do philanthropic giving – even if those givers are motivated, in part, by the trinket they’ll get for supporting you.