There are many Crowdfunding sites that help startups to raise funds. Unfortunately, many startups fail to meet their targets. For example, on Kickstarter 57 percent of campaigns fail to reach their funding goal. The successful ones have collectively managed to raise a total $1 billion.
If you want your Crowdfunding campaign not to fail, you need to avoid the following mistakes:
Assuming that donors and supporters are selfless
You family members and friends may contribute because they love you. But other backers need something to motivate them. They will want to get something in exchange for the support they are giving you.
Think of these people as people who are selfish. If they are going to give you money, you have to provide them with something they desperately need. Make it an interesting gain to them.
Anything that you offer as an enticement should underline the image of your brand; make sure it is consistent with your brand experience.
Don’t start off slowly
Alon Goren, the CEO and co-founder of Invested.in recommends that for you to hit your goal at the end of the campaign, you need to focus on netting 30 percent of it in the first two or three days. That is what research has shown about successful campaigns.
For you to achieve this, make your inner circle supporters to contribute immediately upon the launch. These may include your family, friends, close associates and die-hard fan.
This is the surest way of attracting donors. You don’t expect donors to put money into your campaign when there is nothing in it. You must show that things are moving and moving fast.
Thinking that Crowdfunding campaigns happen automatically
For your Crowdfunding campaign to be successful it requires an all-out effort. It is something that you can not place on an “autopilot” mode to happen on its own.
You need to hire experts to do outreach. Give it your time just like you would give running your business.
A one-day’s notice is not enough to mobilize bloggers to spread the word for you.
Before the campaign, figure out how to use search engine optimization and public relations to capture the attention of bloggers and other influencers. All these will require that you be active in social media.
Depending only on online campaign
Crowdfunding campaign needs you to use all available channels. Figure out any means that you can use to attract donors. You can consider press events, movie screening or a dinner party.
Think of anything that your target audience is interested in and use it to pull them to your campaign.
Forgetting to ask for donations
There are many people who are ready to donate to a project not because they need the product but as a sign that they appreciate the idea behind the project and also to encourage others to be innovative. These people do not expect anything in return.
You need to focus on explaining why your project is important and how you can’t achieve the goal without a financial donation. This will help you tap into people’s desire to be philanthropic. So, go ahead and ask people for donations.