10 Crowdfunding Mistakes You Should Avoid
Statistics say that less than one-third crowdfunding campaigns are successful every year. If you try to figure out the reason behind those failures, you’ll know that it has nothing to do with the idea of your project every time. Like every other form of business, crowdfunding has its own strategies and a series of tasks that needs to be done. By failing to do any one of them on time might just be the sole reason for the pitfall.
Every single step in crowdfunding is vital. One aspect which is overlooked by many crowdfunding campaigns is proper communication. The more backers you contact, the higher your chances to have a successful campaign. Crowdfunding campaigns rely on word-of-mouth marketing to a certain extent. More than the idea, what’s important here is the way you showcase your project in front of the community.
Just to make sure you don’t miss out on anything, here are the 10 mistakes we think you must completely avoid in crowdfunding.
Never Rely Only On the Crowdfunding Platforms
Kickstarter and Indiegogo are the most popular platforms people choose for crowdfunding. They are a big community but relying only on that community is not a wise thing to do. Crowdfunding has turned out to be one of the many mainstream fundraising formats available on the web. There are a lot of people out there who are willing to back for your project but are not that active on crowdfunding platforms. To grab the attention of those leads, you need to branch out on the web. Use platforms like BackerClub, Kickstarter Forum as well as Gadget Flow to grab more attention.
Doing Social Media Organically is a No-Go
Social media is necessary for crowdfunding. In fact, you can use it for more credibility and make yourself more visible in the online world. But concentrating only on organic campaigns is not a wise decision. Since you have a short deadline here, make sure to use advertisements as much as possible. Just having a Facebook page is not enough. You need to spend on Facebook Ads to spread the word out faster.
Never Neglect Your Campaign Presentation
Whenever you get a lead for your crowdfunding campaign, they are going to be redirected to the corresponding Kickstarter or Indiegogo campaign page. So by neglecting the campaign presentation, you will be one step closer to being a crowdfunding failure. Make sure those videos, images, and description are perfect for drawing more attention from your potential backers.
Not Having Social Media Presence
The platforms you must consider are Facebook, Instagram, and Twitter. It’s not just for drawing more followers but also for increasing your credibility like discussed before.
Not Having Pre-Marketing Plans
Getting the word out before you launch your campaign always works. There are many online services like Gadget Flow, BackerClub etc. that can help you get the word out earlier. You can also use Facebook Ads to take up sign-ups and keep them updated with periodic newsletters. This will help you draw attention from your potential backers exactly on the day you launch your campaign.
Not Asking Help from Your Family and Friends
When you launch a crowdfunding campaign, you should be focusing on reaching your goal as fast as possible. To do so, you must make sure to ask for help from your family and friends in the first 48 hours. Reaching up to 30% of your goal in that time span is like surpassing the “Tipping Point” of your crowdfunding campaign. If you fail to ask for help on time, chances of reaching a high percentage of your goal in those first 48 hours become even more difficult.
Not Following Similar Crowdfunding Campaigns from the Past
Knowing about similar campaigns is necessary. By being able to do that research, you can make your campaign unique and different. You can also do comparison charts if you have enough data!
Not Replying to Comments
You need not just answer them but you have to answer them fast. In addition, make sure people understand that you are fully aware of what you are trying to sell. If you are confused with your product’s features, you may as well not consider selling it at all.
Not Following a Narrative Story Structure
You need to let the world know how you transformed an idea into a mainstream product. Go for an editor if you wish to but ensure your story is narrated in a unique way.
Not Going For the Right Tools
Additionally, there are many tools out there that can be of help. Here are our favorites –
- Campaign Monitor works great for newsletters
- Gadget Flow is ideal for pre-launch as well as during launch advertising
- Crowdox for managing your pledge rewards
- BackerClub for their backer community
- Facebook Ads for reaching more backers
- Buffer for social media management
- ClickMeter for tracking links
- Canva for graphic design
Have more to add to the story? Share your thoughts with us in the comments below.