There is no denying the fact that crowdfunding is all about raising as much money as possible. However, it is important to note that more money can also lead to more challenges for the campaign owner. You are completely mistaken if you have the impression that only the multimillion dollar ventures raise astronomical amounts through crowdfunding. It has been observed that many smaller ventures tend to exceed their funding goal by many times after setting a modest goal. We here at Crowdfund Buzz have helped clients exceed their own crowdfunding goals by as much as 1000% (that was not a typo – we meant to say one thousand percent).
Raising more money is certainly great news, but be prepared to deal with some additional challenges if this happens to your crowdfunding project. Depending on how you handle this unexpected success, your campaign may head towards to a crisis situation or open up larger opportunities for you. Like most things in life, it all depends on how you look at it.
Success beyond expectation in a crowdfunding campaign is a double edged sword that can easily backfire. Regardless of the nature of their startup venture, most of the project owners look at crowdfunding as a platform where they can raise some money to run a pilot involving a few hundred enthusiastic backers. However, it can be an extremely daunting experience to suddenly have a few thousand customers. These types of situations can cause lots of issues for a project unless the team is extremely well prepared for unexpected high demand.
The biggest problem in these scenarios is the fulfillment of orders. Most campaigns tend to falter here as the process becomes more complex and larger. Managing the campaign itself becomes much more demanding as the number of backers increases. This will mean reading and responding to hundreds of private messages and wall comments. Doing all these things in a timely manner is never easy while doing the actual work relating to the project. It is a good idea, therefore, to have all these things handled by a designated person who can be your point man on your crowdfunding campaign.
In other words – delegate key tasks in executing your crowdfunding project so the workload is evenly distributed across an entire team of people all working towards the same goal.
As experienced crowdfunding consulting company, we often come across overfunded projects that find it extremely difficult to deliver all promised rewards without delay. Also, it has been observed that backers are often drawn towards a campaign by its popularity. You would be surprised to know that many of these backers do not even read the project details entirely and end up anticipating a reward or product that is better compared to the actual one. This makes it even more difficult to manage the backers efficiently. The success of the crowdfunding campaign builds its own momentum, in other words.
Therefore, all crowdfunding campaign owners must take a more proactive approach while managing projects that exceed its funding goal. It’s important to monitor the number of backers and be prepared to handle an excess number of crowdfunding backers. Sound communication can be an asset while dealing with this type of situation. Under any circumstance, it is your responsibility to ensure that your backers do not have any misconception about the campaign they are supporting. Keep your backers informed via timely updates if you feel there can be a delay in order fulfillment.
CrowdfundBuzz is one of the most efficient crowdfunding consulting companies run by industry experts with a wealth of experience in the industry. We provide cost efficient support to help you with any of your crowdfunding related requirements. Thanks for reading this post and please come back for more insightful discussions.