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Monday, September 24th, 2012

The Top Reasons why Crowdfunding Campaigns Fail

 

Crowdfunding is growing in popularity. There are always stories in the news lately about a campaign that struck it big and raised a ton of money. However what you don’t hear about are the campaigns that weren’t successful, the ones that completely failed to reach an audience and their funding goal. Kickstarter, the largest crowdfunding platform online, has launched 70,850 projects to date and only 43.88% of successfully reached their funding goal. So what distinguishes the successful projects from the ones that flop? There are many factors that lead to an unsuccessful campaign, however below outlines the top 5 that arise again and again. So before you start your campaign, take these into consideration:

#1) Nobody knows who you are

The best thing to do before you set up your campaign is establish a following. Start your Social Media campaign, email marketing, in person marketing before you launch. This way when you do launch you will have people that know who you are and (hopefully) care about what you are doing eager to put in their dollars.

 

#2) Nobody knows what you are talking about

It is critical for any campaign to have a clear and concise explanation of what their project is about. Ensure that in your messaging (including your social media promotion, campaign video, and campaign text) states why your project exists, what you are trying to do and why, and how you are going to go about it. Keep it as simple as possible!

 

#3) Nobody sees how you differentiate from your competition

What makes your campaign unique against all others? Is it your passion for a cause? Your creativity in communicating your message? Is it your personality? Whatever it is, make sure you leverage it to stand out.

 

#4) Nobody is “moved” by your project

What higher human ideals are you tapping into? The most successful projects tap into people’s emotions, are humorous with heart, are sincere and authentic. Communicate this through all aspects of your marketing, particularly the video.

 

#5) Nobody sees you caring about your donors

It is very important in the crowdfunding process that you view (and communicate to!) your donors that they are the hero. Without them your campaign would not be possible and because of this you want to make them feel valued and included in the process. To keep them connected, share regular updates throughout your campaign. Show your human side. Be grateful. Update them on the project’s progress. This goes a long way!

 

Before you start your campaign, be sure to take the above into consideration. Crowdfunding has a lot of potential if you are well prepared and play your cards right. If you are looking for tips on how to run a successful campaign check out The Top 10 Tips to Successful Crowdfunding.


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