A recent article in the Wall Street Journal entitled “There’s No Refunding in Crowdfunding” got me to thinking…
…is there chaos in crowdfunding?
Some would say yes. People running a crowdfunding campaign hit storms of chaos right from day one as a dozen or more crowdfunding promotion companies (like ours) get in touch with the managers of these new crowdfunding campaigns trying to persuade them to use their services so as to promote a crowdfunding campaign. Which one of the dozen or so companies do they choose?
Easy answer there – Crowdfundbuzz.Com of course. Our achievements and credentials speak for themselves.
But how can potential backers be nearly as confident if and when they decide to back a crowdfunding campaign?
The Wall Street Journal article talks about The Gobe, the Eyez Kickstarter project and the Scribble crowdfunding campaign on Tilt. All of them raised tons of money and all of them have failed to deliver.
In the interests of fairness this same crowdfunding article talks about the success of the Veronica Mars crowdfunding project, The Oculus Rift Kickstarter which led to Facebook acquiring the company for $2 billion.
This articles goes on to talk about the steps both Indiegogo and Kickstarter take to vet crowdfunding campaigns to weed out scam projects from those with integrity and every intention to follow through on all crowdfunding perks promised.
No matter how much effort is put into stopping crowdfunding scams, the crowdfunding platforms themselves couldn’t possibly stop prevent malicious crowdfunding projects of every stripe. Unfortunately, this crowdfunding trend isn’t going to stop anytime soon.
Questionable crowdfunding campaigns are everywhere and new ones pop up all the time. This creates a crowdfunding quandary; how can potential backers be sure they’re giving money to a legitimate project that will deliver on its promises? How does a crowdfunding project owner deliver the peace of mind more and more crowdfunders need before taking out their wallets?
Sit up and pay close attention to the answers to these critical questions…
If you’re running a crowdfunding campaign or plan to launch a crowdfunding project in the near future here’s your checklist to give your crowdfunding campaign authenticity:
The devil is in the details. Make sure your crowdfunding campaigns tells a complete story with plenty of verifiable information that can be checked on and verified. Are there any holes in your crowdfunding pitch? Are you easy to reach via email, Facebook or — even better – a proper and published website?
Show crowdfunders the money. Put your project on display in your crowdfunding pitch video and be sure to have plenty of pictures of the product or charts showing the service in action in the body of the crowdfunding project text and the gallery section. Don’t stop there. Post pictures of schematic diagrams, videos of working prototypes in action. The more people can see the easier they can believe.
There are several good reasons to keep a crowdfunding campaign up to date. One of the most important ones is that a commitment on the part of the crowdfunding campaign manager shines through consistent updates, timely replies to comments and ongoing engagement at every level.
Front-and-center testimonials pertaining to a real person using the product or service are powerful. What’s even stronger? The ability for potential backers to contact the person who made the testimonial. What’s even stronger than that? Celebrity endorsements. Go get some! They’re easier and cheaper to acquire than you think.
People are easily put off by products or services that sound too good to be true. Even if what you’re offering is a life-changing breakthrough in any given category TONE IT DOWN. It’s easy for entrepreneurs to get overzealous about their creations even if they deliver 110% of what’s promised. Keep it real and realistic to insure believability.