Why crowdfunding campaigns fail – some thoughts
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):
- 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
- You have a great product or service but aren’t communicating its benefits clearly enough or consistently enough
- 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]
- You’re not clear on which audiences you want to attract and engage with [Note: “everyone” is no one]
- 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?
- 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
- 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
- …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
- 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
- You aren’t sharing great content over social media that is relevant to your campaign
- 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.