Crowdfunding is a great way to secure funding for startups and small businesses. It might seem like an easy task, but it is far from simple. In fact, many crowdfunding efforts fail. The good news is that here we will talk about how and why crowdfunding campaigns fail and how you can avoid these mistakes so that your campaigns can succeed.
Reasons Why Crowdfunding Campaigns Fail
The Launch Time Was Off
Timing is everything, especially when it comes to crowdfunding campaigns. If you are using a platform like Kickstarter, the first day of your launch is important because if you get enough traffic on your page, you can be on the front page and have more eyes on your page.
It is best to research your target time zone and plan accordingly. Every time zone is different so be sure to figure out the best time for you. You do not want to launch in your time zone when everyone is sleeping.
Your Video Is Unclear
Crowdfunding platforms allow you to post a video that explains your product or project so people understand what your goal is and what they are contributing to. If you are inexperienced when it comes to creating video content, seek an expert who can take a hand on approach during the creation process to give you the best results possible. In this day and age, video content is very powerful so this would be worth the investment for your business.
If your video is unclear, people might not watch the whole way through or figure out what you are doing. It is important for people to understand your message and grasp the idea of your product or project. Remember that you are introducing your product and business to the world and asking for people to give you money to fund your business. This is why you want to the video to be clear and concise.
The Wrong Crowd
Look into the platform that you are using. Who are the backers? What are popular or featured campaigns? You want to make sure that your campaign appeals to the right crowd and that it is a good fit for that website.
The Content Is Too Complicated
It is great that you want to provide so much information on your product or business but be careful to not overwhelm people with all the information.
You might have the best intention to give them as much information as possible, but you need to not overwhelm people because they will not understand you or get bored with it. Do not try to explain every single detail. Instead, highlight the features that solve your customer’s problem.
Things to Do to Have a Successful Campaign
Launch at the Right Time
The day of the week that you launch can play a factor in determining how many early contributions you will receive. This of course depends on the platform you are using or if you have a specific date like a holiday that you are aiming for. Make sure you do your research on time of day, the day of week, time of the month, and season that you are planning your launch. All of these factors play an important role.
Know Your Audience
Sometimes the crowdfunding backers are not interested in what you have to offer. You will need to do research to determine if those same demographics are using your crowding platform of choice. If not, then it means you are looking in the wrong place.
Create an Impactful Video
Research and determine successful campaigns you want to emulate. Successful videos have a length of around two minutes and up to four minutes. Concise and straight to the point is key.
Test Your Content
Often people working at a startup are so close to the content they have created it can be all too easy to lose sight of whether or not it is the most relevant or clear information. Show the video of what you are considering posting before launch and see what people think. Be sure that they understand the message and like what you have to say. Adapt to any changes that should be made.
Connect with Backers
Before your campaign starts, focus on broadening your social reach to potential backers. When the campaign starts, let people know as personally as possible how excited you are that they have decided to fund your project.
The Bottom Line
There are no guarantees with crowdfunding. At the end of the day, no matter how much time you put into your campaign, if it does not work out in one platform then go to another one. There is nothing wrong with making a mistake as long as you see what went wrong and move forward.