Thinking of your startup/idea/campaign every day and night, but not actually being pragmatic and following the realistic steps towards meeting your goal, could bring about your campaign’s failure.
You might say:”I just didn’t see it comin’.” You didn’t, because you didn’t know which are the most common mistakes for a campaign.
According to crowdfundingAcademy “a high percentage of crowdfunders (about 60%) do not meet their monetary goal.”
I think this is highly due to the lack of knowledge of what could go wrong. Many campaigns have what it’s worth for success, but they just aren’t sensible enough and don’t take many details into account.
So, let’s see what could go wrong for a crowd-funding campaign.
This is a major mistake often being made, because people are not careful enough what to choose, and they don’t identify correctly their product, the market of interest, the buyer persona, so there’s a lot of confusion at stake.
Giving us 5 crowd-funding mistakes to avoid Salvador Briggman puts an emphasis on the importance of this choice.
You can opt for a more “flexible crowdfunding” platform, like Kickstarter or IndieGoGo, but you should also consider opting for a niche one. (Look at the benefits of addressing a niche market and draw a parallel).
So, before selecting your platform, decide on your type of campaign, your audience and market.
Me: Tarzan! You: Jane! Now you understand?
Another problem is when people don’t know what your crowdfunding campaign is about.
Scott Steinberg explains in his post for Mashable, that “there are too many examples of campaigns that have generated good traffic and awareness, but have failed to monetize it because customers don’t understand the project or key sales points.”
Try and illustrate what you are doing: key values, major benefits offered, what’s at stake, your aims. You can do this by putting a lot of questions beforehand and answering them. You need to prepare more before you launch your campaign, test and screen campaign pitches.
An idea is to present your materials to a third party, which can give you feedback. You can also do a search online whenever you are unclear of your target audience, the benefits of your product and so on.
Error! Error! Campaign not found.
Another great problem is not developing an identity, so that you aren’t that easily discovered and found online.
If you remain obscure you can’t reach success. This happens because you don’t build trust, so although you might engage audience, they won’t return to you.
What’s even worse is not stirring awareness, so not many will know about you and invest their money in you. What you can do is to address to a certain niche, fan base and to create a personality for your product.
Scott Steinberg gives you the advice to recruit testimonials from well-known industry celebs, who can endorse your campaign, so that you’ll build trust and awareness.
This is what Alon Goren, CEO and co-founder of Invested.in said. He created a fundraising portal hoping that people and businesses could get to crowdfund campaigns independent of major platforms.
Elaine Pofeldt writes for CNBC that if you want to reach your aim, you shouldn’t start off slow. Alon Goren believed that if you raised 30% of your goal in the first 2-3 days, you would reach your goal.
I think this is true, as you can see from one of my previous posts: 5 projects on Kickstarter that were funded within days.
So, you should make sure that you have already established some connections that will quickly invest in you, so as to stir awareness: friends, relatives, fans. As Goren said, you’d also show people there’s some traction.
So, you’re saying you’re who?!
Being one of the many existing campaigns out there won’t ensure your success. People won’t be impressed and compelled to invest in you if you’re just yet another crowdfunding campaign.
So, you need to be unique and show them how important and vital your campaign is. Scott Steinberg advises you to communicate this in all supporting messages and assets.
Be with us, not without us!
You need to connect to your target audience, create your fan base and constantly engage them, don’t let them forget about you!
You needn’t only concentrate on public relations, marketing, social media tactics, press mentions, but also you should try to be innovative and unique when it comes to connection and socialization.
You could offer exclusive rewards, promote your brand by an eye-catching video, and team up with celebrities to endorse your product.
Listen and respond to your feedback. Your fans want you to be with them, not without them.
Beggars can’t be choosers
Don’t shoot for the moon!
People won’t credit you and you won’t establish trust if you ask for too much money. You need to be very sensible and rational when you think about the fund your crowdfunding campaign wants to reach.
You need to put into balance all the costs of your campaign and to be fair and honest. By promising your donors rewards and that you’ll show them the results of their investment, you’ll also appear trustworthy.
Ever thought that without your backers and supporters you’d be a nobody?
So, remember who you are. You need to keep a running dialogue throughout the campaign with your audience.
You can do project updates, newsletters and reach to them by means of social media. Outreaching them, as Scott Steinberg suggests, should be done on a daily basis.
Also, when thinking of your backers’ rewards, don’t be skimpy. Offer them useful and real value. They will appreciate your effort and honesty.
You can also let them have a say in the final project, and this will also help towards creating a community around your campaign. You need to make them feel involved and valuable for your campaign.
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Here at Squirrly we are very preoccupied by all the news stirring in the startup eco-system. And we want to help you get all the juicy details of how to fund your business!
These are some of the most common mistakes made by crowdfunding campaigns. Have you been doing them? Tell me in the comment section below!
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