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Crowdfunding has become a popular form of fundraising over the last few years. However, many crowdfunding campaigns fail to reach their goals and falter without proper preparation. A crowdfunding campaign consists of many dynamic parts such as financial planning, time management, and social presence. This article is about the most common crowdfunding mistakes, and they are relevant to all types of crowdfunding campaigns. It doesn’t matter if you are planning to launch an IT, art, or medical treatment project, a video game, or a live dealer casino – whatever you are planning to do, some typical mistakes kill many crowdfunding campaigns.
One of the reasons why sponsors pass crowdfunding projects aside is that the goals of these projects don’t seem to be justified and realistic. If the fundraising goal doesn’t seem to be achievable for investors, the whole project also doesn’t seem to be worth investing money in. According to statistics, over 70% of crowdfunding campaigns don’t hit their goals. To make your crowdfunding goal achievable, set a clear budget for the project and analyze the audience size. Which minimum amount of money do you need to fund the project? Can it be raised in stages? Can you explain to backers where all the money will go? Try to keep the funding goal not too high and not too low, and compare it with another similar project in this field. The deadline for the launch should also be achievable.
Today the number of crowdfunding websites is high, and many of them are category-specific. Before launching a campaign, you should do research on different crowdfunding platforms and choose the one which is perfect for your needs and addresses your purpose. Publishing your project on a specific crowdfunding platform may increase your chance of success, so use multiple platforms for the launch of your project. So, choose several crowdfunding platforms for your project: for example, a non-specific one (Kickstarter) and one for medical reasons.
According to statistics, the first 48 hours of your pre-launch campaign are very important for the project. The strong, short, and informative pitch video about the project is the type of information that is easy to grasp. According to statistics, the “strongest” pitch videos are the ones that come in under five minutes and showcase the product of the campaign in the best way.
Your video must shed light on your project and answer the most important questions the backers and visitors can ask you about. Which people will benefit from your project and why? Why did you decide to start a crowdfunding campaign? Why is your product unique? To convey the essence of your project it is not enough to use texts: you will certainly need visuals to bring the idea of your project closer to the public. Think about hiring a professional who will be able to do it.
Accounts on Instagram, Facebook, Twitter, and other social media alike will help you tell your story, tell the story of your project, and grab extra attention from followers (they can turn into backers!) To use the potential of social media in the best possible way, think about an appropriate social media strategy and content plan. Make regular posts, start conversations with your followers, and collaborate with popular bloggers. You can also launch a pre-marketing campaign on social media. Moreover, even if you have already launched crowdfunding, don’t stop promoting your project. It is important to stay in contact with your backers and followers and get in touch with new people and bloggers.
Besides the emotional video don’t forget to invest your energy in creating a compelling narrative on social media and crowdfunding platforms you use. The text must be well-written, short, and have enough details and numbers. Why are you fundraising? What will you do with your money? And what does the project matter exactly to you? To gain n trust of people you should also tell them your story with strong text, video, and photos.
Summing up five common mistakes in crowdfunding campaigns, it is important to say that crowdfunding is a powerful tool only when used properly.
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