Crowdfunding Campaigns In The Year Ahead – What to Expect
Talk of crowdfunding campaigns on the eve of New Year’s Eve? Sure. Why not? Before you make your plans for tomorrow night or start your own new year’s eve party planning spend a few minutes seeing what’s next and new in 2017. And we’re talking way past CES in Las Vegas next week (Happy 50th birthday CES!)
#1 – Crowdfunders are Going to Get Smarter
Sadly, this is already happening the hard way. In the last few weeks, prospective clients have been contacting us with more or less the following “My crowdfunding campaign failed the last time around. I learned that without crowdfunding promotion crowdfunding campaigns are doomed. I’m planning a relaunch and I want to hire Crowdfund Buzz for crowdfunding PR….” Throughout 2016 we’ve seen hundreds and hundreds of campaigns fail because of one simple thing; a total absence of crowdfunding promotion. The answer is as simple as it is sad: The crowdfunder made no plans for promoting a crowdfunding promotion and had no budget to do so even after they realized their fatal mistake. The learning curve of crowdfunding is steep but it is rewarding; people are starting to see the light.
We can only wish that more people read this crowdfunding blog or even what Kickstarter and Indiegogo say themselves about crowdfunding public relations. Consider this quote from Kickstarter:
“Don’t expect magic. Chances are, you can’t just toss your project out into the world and sit back while everyone raves about it. Put in the work to let people know what you’re doing, and watch your efforts pay off.”
When Kickstarter itself makes it clear that crowdfunding campaigns need to be promoted you know it’s a fact not to be ignored.
#2 – More Crowdfunders are going to stop wasting money on crowdfunding marketing
Earlier this year we discussed the perils crowdfunding advertisers face with ad fraud and ad blockers and with this Wall Street Journal article published just yesterday – Best and Worst Ads of 2016: The Things We Can’t Unsee we see yet another example of how crowdfunding public relations is way, way more powerful and far, far less expensive than paying for crowdfunding advertising. When reading the article scroll down to “Marketer: J.P. Morgan Chase & Co.” to see how wildly successful they were in rolling out a premium offering and shattering all expectations in just two weeks — without spending a PENNY on advertising. Crowdfunding campaigns in 2017 need to study this success carefully so they can replicate the results.
#3 – Equity Crowdfunding is Going to EXPLODE
Reviewing crowdfunding trends in our PR firm, many more entrepreneurs retained us to promote an equity crowdfunding campaign in 2016 than ever. With all of the JOBS Act rules fully and finally established by the SEC coupled with equity crowdfunding platforms coming of age, we predict that equity crowdfunding will be a more attractive option to those wishing to raise funding when compared to reward crowdfunding. As a result, we see growth in reward crowdfunding slowing a bit as more equity crowdfunding projects launch in 2017.
#4 – Crowdfunding Fraud Will Diminish
With Indiegogo introducing new identity requirements and fiscal responsibility guidelines along with GoFundMe putting in place better vetting of fundraising projects, potential scam artists will be discouraged from launching “give me money” projects due to the higher likelihood of the campaign being pulled or the fraudster never seeing a penny of the money they’re trying to abscond with.
Prevailing professional opinion points to 2017 being the best year ever for crowdfunding campaigns of all kinds – which has been the prevailing trend since crowdfunding itself started.