The recent success stories of different crowdfunding campaigns have significantly increased the interest of the common man in crowdfunding platforms such as Indiegogo, Kickstarter, etc. However, the hard work putting together a successful crowdfunding campaign behind the scenes is often overlooked if even understood in the first place. Moreover, it is important to note that most people are not aware of hundreds of crowdfunding campaigns that end every day without even getting close to their funding goal. There is no denying the fact that it is possible to enhance the probability of success of a crowdfunding campaign by doing a few critical things. Similarly, it is also important to avoid certain mistakes that may prove to be too expensive at a later stage.
Being the first and the most well known crowdfunding promotion company in the crowdfunding industry, we’ve observed that the success rate is higher for crowdfunding campaigns that have one or more known personalities attached to the project. On a related note, we’ve seen several obscure crowdfunding projects fail to make any impact whatsoever. Always remember that if you’re a new crowdfunder you are completely unknown to everyone at the start of your project. This is why it makes a lot of sense to tie a crowdfunding project to a well known personality or brand whenever possible. If possible, you can further build trust by adding testimonials from well known personalities or industry heavyweights. Testimonials from ordinary consumers who have used your product or service and are very happy they did are nearly as powerful.
Your ability to clearly illustrate and explain the core benefits and value propositions of your crowdfunding project is critical to the success of your campaign. Many campaigns fail miserably in spite of managing to generate a substantial amount of traffic simply because people fail to understand the project; either its importance, benefits or both. You can avoid this deadly trap by preparing extensively before your crowdfunding campaign launches. Screening and testing of textual and multimedia materials and campaign pitches with the help of third parties can be a good alternative. It is also of vital importance that you understand your audience and the best way to connect online with them.
Thousands of crowdfunding projects are launched every day pitching every type of product, service, film or non-profit cause you can think of. Therefore, no matter how unique your project is, there are many similar projects already competing in the crowdfunding marketplace. Therefore, it’s extremely important for you to position yourself and your project uniquely by communicating your crowdfunding project’s unique selling proposition (USP in professional jargon) and core benefits.
We’ve also noticed that many promising projects fail because they fail to create sufficient consumer awareness. This mostly happens because of inefficient or inadequate social media outreach, marketing and/or PR strategy. In addition to press and social media, the superior crowdfunder will make use of exclusive/unique rewards, engaging videos, etc. to generate interest and awareness.
Be prepared to spend a lot of time to stay in touch with your backers and supporters through newsletters, project updates, and social media outreach. Inspired backers are critical to your success because they can not only help you spread the word, but also provide you valuable suggestions at key moments.
Finally, we come across many project owners who find it difficult to decide how much funding they to set as their target. Setting the funding goal is never an easy job. However, in general, projects with an unrealistically high target tend to fail. Therefore, stick to a more reasonable figure by trimming all your extraneous features, product right sizing, and focus only on the essential elements.
More often than not, campaigns can succeed and easily exceed their crowdfunding goal by setting a lower dollar amount than putting out a very high crowdfunding target that might well be impossible to achieve.