Starting up a crowdfunding campaign is very easy. All you need is to put up a video and backers will begin to throw in their money. It has a reputation as an easy way to finance a startup business. As easy as it may sound, pulling off a successful crowdfunding campaign is far from easy. For every success story of a viral video, there are millions more that never got to see the light of day. Why crowdfunding campaign may fail or succeed is highlighted below as narrated by entrepreneurs who have taken a shot at it.
1. Wrong timing
If you happen to launch your campaign at a time when a lot of others are doing so, there will be a stiff competition for audience which will greatly lower your chances at placing tops on the platform (e.g. kickstarter). Have an idea of the time zone of your target for a chance to get the highest possible traffic. The best time to launch a campaign is in the morning.
2. Wrong audience
Failure to target the right crowd is like shooting yourself on the foot. You have to make your campaign appeal to the crowd. NYC Vanity’s Brandon Kelly once ran a crowdfunding campaign for their product called The Palit. In the end, they found out their backers were only those that they know.
3. Unclear video
Crowdfunding platforms have a section for campaigners to post a video that explains their product or project so that backers will have a sense of what they are contributing to. An entrepreneur once hinted on how their campaign video was viewed by over 20,000 people but only about twenty-nine percent finished watching because they could not grasp what the video was talking about.
4. Complicated content
People often make the mistake of thinking that keeping their videos complex will impress their audience. Complicated videos often happen when the campaigner is feeling very enthusiastic about his or her business. Keep your video simple without trying to explain every technology. Focus more on the features that will solve customers’ problem.
There are no guarantees with crowdfunding
The success rate reported by entrepreneurs using kickstarter crowdfunding is currently placed around forty-four percent. As a startup business, the percentage may be high enough to worth a shot. However, startup businesses should realize that there are a lot more funding sources out there. They should weigh the other alternatives when their crowdfunding campaign fails rather than wail.
It is not a crime to make a mistake in business
Making a mistake is not a crime in business if you sit back and take stock of what went wrong. Every successful entrepreneur must have made a mistake in their business at one point or another. What they usually did after the mistake is to go back to the drawing board and re-strategize till they meet success. More emphasis should be laid on taking stock of mistakes because that is what makes you wiser.
There are several ways to turn the dice around
As an entrepreneur, what will you do if your crowdfunding campaign fails? Fold your arms? Definitely not. The best option will be to try again. The various ways you can make the odds go in your favor includes:
- Getting the timing for the launch of the campaign right
- Having a defined audience and aiming at them
- Creating a video that is concise but makes an impact
- Have a trusted advisor test the content of your video
- Connecting with your backers
- Crowdfunding campaign can be started easily using crowdfunding platforms.
- The best time to begin a crowdfunding campaign is in the morning.
- Crowdfunding videos should be simple and appealing.
- Define your audience before starting a crowdfunding.
- When crowdfunding, focus more on how your product or service will improve the life of your customer.
- Your crowdfunding campaign can fail.
- The success rate of crowdfunding is forty four percent.
- Every entrepreneur has made a mistake at one point in their life.
- Startup businesses always have a hard time raising funds.
- Crowdfunding video should be of high quality.
Bookmark This Page (Ctrl + D)