Over the last several years crowdfunding has become an increasingly popular for raising funds for any project. Many start-ups try to raise money by running a crowdfunding campaign, but unfortunately the majority of crowdfunding campaign fails to reach their goal. Crowdfunding may seem simple, but considering the fact that more than 60% of campaign fail. In Crowdfunding, around 30% of the campaign hit their funding goal and successful campaigns on Kickstarter have collectively raised more than $1 billion. But on the other side around 70% of the campaign fails to hit their funding goal.
For every successful crowdfunding campaign we hear about, there are many more that have completely failed to meet their goal. There are many challenges while running the crowdfunding campaign. There are many things that kill a crowdfunding campaign, even before getting started. Here are a few mistakes that kill a crowdfunding campaign to get successful.
Ignoring Social Media
One of the key strengths of crowdfunding campaign is its ability to leverage the power of social media to build widespread support for the project. Social media is crucial to the success of a crowdfunding campaign as it helps a campaign to go viral. While planning for running a crowdfunding campaign, make sure to focus on the social channels that will provide the most impact. There are so many social channels, but some of the main channels were Facebook, Twitter, Pinterest, Tumblr, Youtube, Google+ and LinkedIn. Make regular posts for your crowdfunding campaign, increase as much as followers or likes, try to get maximum reach.
Setting your goal too high
Many crowdfunding campaigns fail because of setting too high funding goal. But it is not the time to go too far about how high you’re going to set your goal. So to avoid the failure, set your crowdfunding campaign to minimum goal you need to raise so the fulfillment of your product is possible. The more reasonable the goal, the likelier fans are to believe it’s attainable and contribute. If people like your campaign and you have successfully reached your initial goal, then you can extend your goal to maximum such as stretch goals or in-demand campaigns.
Set a reasonable price for the product and also set different perks or pledges that will make backers choose their reasonable perks or pledge. Also search for similar projects and compare with them that what goal they have set and what different perks or pledge they have set that make their campaign success.
You Fail to Ignite, Engage, or Connect
There are many crowdfunding campaigns that fail to raise funds, and some of the main reasons behind were lack of awareness, insufficient or ineffectual public relations, marketing, or social media tactics. We’re taught not to ask for things, but while running a crowdfunding campaign try to get it out as many people as possible. If you don’t have a crowd, then how a crowdfunding campaign will be successful. So do as much as exposure for your campaign to reach people around the world that will help your campaign and make it reach the target goal. To get more exposure, don’t just look to social media, but also consider blogging, press release, email blast, team up with other creators, eye catching videos, and much more.
Whether you’re raising money for an innovative product, social cause, creative film idea, or any other reason, working with a team will multiply your network and help make your campaign successful.
Rewards or perks set by the fundraisers for the crowdfunding campaign make a difference in the success of the campaign. Perks or rewards help to set your campaign apart from the competitors and also raise the chances of success. There are many reasons for people to support a crowdfunding campaign, so a good reward often brings more backers to some campaigns. Perks or rewards are directly connected to your crowdfunding campaign, which let people participate in your campaign and support it. Having an early bird perks is a great way to build momentum. Early bird is a special perks for early supporters with limited number and high discount as compare to other perks. Whatever the rewards or perks are, they should resonate with your campaign.
Having no strategy in place
Running a crowdfunding campaign needs full time engagement. Most successful campaigners spend months planning their campaigns before the campaign goes Live. Most of the experts recommend at least 2 months before the campaign launch. You need to set or planned everything before the campaign goes live such as marketing strategies, emails list, social channels, decide how and when you’re going to give your backers updates, what if the campaign fails or reached its target. Whether you’re raising money for an innovative product, social cause, creative film idea, or any other reason, you must have a strategy that you need to take to launch and manage a successful crowdfunding campaign.
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