Why crowdfunding campaigns fail – some thoughts

By October 5, 2017Crowdfunding

We help entrepreneurs and businesses to ask for the sale, which can take many forms – including crowdfunding. Over the years, we’ve worked on reward- and donation-based crowdfunding campaigns, to secure crowdsourced funds in campaigns that have raised between $70,000 to $359,000 on platforms such as Kickstarter and Indiegogo.

There’s a huge number of pieces that contribute to a successful crowdfunding campaign. But I feel that there’s a specific number of reasons why crowdfunding campaigns fail – here are some initial thoughts (there’s a lot more where these come from):

  1. A poor product or service. No matter how great your marketing efforts, sales records or campaign initiatives are, if you have a product that no one wants (or you can’t explain why they should want it or need it), you’re going to have an uphill struggle to get backers
  2. You have a great product or service but aren’t communicating its benefits clearly enough or consistently enough
  3. You haven’t spent long enough on your video – thinking about the script, ensuring your audio is really clear and being true and honest to the camera [hint: if you are a passionate founder or inventor, then show this on film and don’t shy away from being on film yourself]
  4. You’re not clear on which audiences you want to attract and engage with [Note: “everyone” is no one]
  5. You’re not leading from your vision and communicating that vision in a way that is clear and compelling – what do you want to change? Why?
  6. You need more swagger. Whether it’s how you position yourself, your team or your product, you need to share passion, enthusiasm and have a confident vibe
  7. You haven’t strategically engaged with relevant media. Please note that randomly emailing any and all press contacts you find is NOT good media relations
  8. …nor bloggers. You need to spend time understanding, targeting and communicating with relevant bloggers, and be clear on the differences and nuances between bloggers and journalists
  9. You don’t have a tribe. It’s incredibly important to build up a list of contacts, and then help these individuals to know, like and then trust you, your product or service and your campaign
  10. You aren’t sharing great content over social media that is relevant to your campaign
  11. You don’t want to ask -aka to “sell.” This can be because you have a misconception of sales, or the thought of asking people makes you uncomfortable. If your campaign is really stuck, then you need to think about how you can sell it – this is where you can take BIG action such talking to prospects by phone, holding a sales-based event, or partnering up with another business to sell can really transform a campaign.
If you are an entrepreneur planning a crowdfunding campaign and want to hear some of the things we would STRONGLY advise you avoid then please join us for upcoming webinar and free crowdfunding advice:  ‘Planning a rewards-based crowdfunding campaign? 13 things to avoid (so you don’t screw up your own success)’.

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