Crowdfunding campaigns can be a great way to receive financial support for your company, project, or product. But when it comes to knowing how to crowdfund successfully, there are a lot of things that can potentially harm your chances of achieving your financial goals.
There are some pretty obvious mistakes to avoid, like aiming way too high with your funding goal and not having a clear and compelling description of your campaign, but what are some pitfalls that people don’t often think about? Let’s explore a few crowdfunding mistakes that can be detrimental to the success of your campaign.
Failing to Grow and Engage Your Audience Before Launch
One of the biggest mistakes people make is not building and engaging your audience/ potential investors prior to starting your campaign. It’s essential to have as big of an interested audience as possible (leads) before you launch in order to achieve and surpass your crowdfunding goals. If you launch your campaign without engaging at least some audience upfront, you’re going to be in trouble for a few different reasons.
First, you need to attract as much attention as possible at the very start of your project. In doing this, you can ensure you’ll get a good amount of money as soon as your campaign launches. And secondly, crowdfunding campaigns have a limited amount of time to reach their goal. So if you have to wait for your audience (in this case your investors) to start pooling in, you may not reach your goal by the end of the campaign.
According to Indiegogo, 42% of crowdfunding contributions are made within the first three days of a campaign and the last three days. So by securing leads before you even launch, you’re ensuring you’ll get money right from the start. Once other potential contributors see you are already successful in the first few days of your campaign, they will be more apt to give. So do not launch your campaign without securing leads first.
Length Of Crowdfunding Campaign
This point might seem self explanatory, but it is certainly worth bringing up as an important piece to the overall crowdfunding puzzle. Without the proper thought given to the time frame, you might be making some avoidable mistakes that could jeopardize your campaign. Choose too short of a length and you won’t have time to drum up enough excitement and engagement from your fan base to reach your goals. If it’s too long, you’ll run into another potential problem, as if there is no sense of urgency, your audience will think they have plenty of time to give, then forget to do it. The optimal time frame for a crowdfunding campaign is 30-40 days. This sweet spot gives your audience enough time to familiarize themselves with the campaign while still keeping it top of mind with its sense of urgency.
In fact, statistics show that lengthening your campaign past the 30-40 days doesn’t guarantee results, and it actually starts to lessen your chance of success. In addition to the urgency component, keeping the timeline shorter allows for you or your team to maximize efforts in the mid-part of the campaign.
Some additional things to keep in mind as it relates to the length of your campaign. In the prep phase of your campaign, make sure that any important dates in your campaign are not lost to a holiday or any other kind of long weekend. If it’s a seasonal product, make sure to launch it at the right time of year.
It goes without saying, but with the majority of funding on the first three and last three days of a campaign, make sure to have your team available for the initial and final push.
Not Utilizing Social Media
Perhaps one of the biggest mistakes people can make when creating their crowdfunding campaign is failing to realize the importance of social media. Through social, you can reach a whole new audience of potential contributors. And did you know that 98% of crowdfunding contributions through social come from Facebook?
If even just a few people share your campaign, it’s going to reach hundreds of potential supporters. And better yet, advertising on social media platforms can be a great way to promote your campaign to your followers and a whole new targeted network in a cost-effective manner.
While advertising your campaign costs money, Storyblaster’s One-Click Paid Promotion has gotten off-the-charts results with as little as a $50.00 spend. With our effective built-in strategy, you will reach a much larger audience and increase the number of potential contributors—increasing the chances of your campaign being successful. With our data-driven approach to storytelling and story selling on social media platforms, Storyblaster has taken a scientific angle to help you achieve your fundraising goals.
When done right, crowdfunding can be an outstanding strategy for gaining financial backing. But that doesn’t mean crowdfunding is always easy—just like all other business strategies, crowdfunding campaigns require commitment and thought in order for them to be successful. So when you’re creating your crowdfunding campaign, make sure to avoid these three mistakes for your best chance of success.