Crowdfunding Success Factors – They Work When You Use Them and You Fail if You Don’t
Crowdfunding success factors in 2018 are pretty much the same they were last year. The sad thing is, almost nobody pays attention to this so the campaign fails.
The key crowdfunding success factors are:
Tell a good story. Let your potential backers know how your product or business idea can benefit them. Tell the world who you are, what you’re planning to do, how you came up with your idea, why you need the amount of funding you need. Show your passion and commitment. Show the world you’ve actually put some thought into the idea, which helps prove the legitimacy and credibility of your project (more about that below). Leave no doubt in anyone’s mind that you have the right idea, the right suppliers and the right business model to produce, package and deliver.
Offer Irresistible Rewards. People will back your project if they think it’s worthwhile and a big part of that is what the backer gets for giving you their money. Be realistic with your pricing and your timeline and make your perk something cool, ideally something they can’t get anywhere else or has never been done before.
Keep Backers Updated. Keep your backers in the loop with what’s hot and happening with your campaign. If your backers only hear crickets they might back out and cancel their pledge.
Tell the World About Your Campaign. Crowdfunding campaign promotion is where most crowdfunders fail. Even if they get everything else right they get this wrong and fail. You can’t keep your crowdfunding project a secret. No serious amount of people are surfing Kickstarter and Indiegogo looking for cool things to buy. Over the years I’ve found that most crowdfunders are afraid of wasting money on crowdfunding advertising that doesn’t work or work well enough. Marketing legend Dan Kennedy has talked about this extensively over the years and makes it simple; business owners might advertise a dozen different ways and never be totally sure which ones work better than others yet they know they must do them all to make the sales they want to make. Every crowdfunding campaign manager is a businessperson. If you’re not promoting a crowdfunding campaign you’re not serious about it or your business. I’ve said this before and I’ll say it again; if you don’t do proper crowdfunding marketing you will fail. Proper doesn’t mean spamming crowdfunding groups on Facebook or Reddit or paying for unproven services from companies without a track record or proof of work.
The crowdfunding success rate is so low as to be sad as too many crowdfunders have the mistaken view they can slap up together a crowdfunding project in about an hour, launch it and then fire off spam and then wait for the money to roll in. That never, ever happens. Crowdfunders, ignore the crowdfunding success factors at your own peril.
Here’s an example:
This is an example of a crowdfunding campaign that did everything wrong. You won’t find any of the crowdfunding success factors in play. This crowdfunder reached out to me on Quora for help. This is exactly what I told him days ago:
You’re asking for $ 1 million which is A LOT of money for a crowdfunding campaign to be seeking.
That’s not a problem in and of itself Your campaign is the problem.
Your Indiegogo project is way too short, contains no details about the food, the ingredients, the preparation and cooking process or what you will do with the $1 million you’re trying to raise.
What little is said is done with broken English and bad grammar.
You also don’t list the shipping method, you don’t talk about the assurances of receiving fresh food or anything.
Your campaign needs to be overhauled and re-written from the ground up before even thinking about the kind of promotion you need to attract enough backers.
Otherwise you have no chance at all of raising any serious amounts of money.
Did he take any of my advice? Nope. Will he have campaign success? Nope. In fact, I’ll be surprised if he raises even $100. He, like too many people, ignored all of the crowdfunding success factors which makes his campaign an inevitable crowdfunding fail.