As an inspiring entrepreneur and someone looking to successfully build a product based business (probably via crowdfunding if you are here), one inevitable question always seems to arise.
If Kickstarter has X number of backers and Indiegogo has Y number of users, why not run a campaign simultaneously on both – more backers, more exposure, more overall funding right?
This is an extremely common misconception, something founders frequently find themselves asking, and is worth looking into – I’ve had 3 separate prospective clients in as many days raise the question, so let’s tackle the truth behind this.
Thinking about running a crowdfunding campaign? Here’s what you NEED to know!
11 Reasons Simultaneous Kickstarter and Indiegogo Projects are an Awful Idea
1. Multiple campaigns splits your network
2. Smaller network means less initial funding from friends and family
3. Less early funding = less virality
Without going at least semi-viral and expanding upon mere friends and family contributions, your company can never succeed. For entrepreneurs, crowdfunding provides not only the funding but more importantly market validation, a future base and product ideas and suggestions, which will ultimately help your company grow and evolve over time.
4. Poor rankings mean less organic backers
Most backers browse ONLY the popular pages. These are the vetted products with social proof, the surefire wins for backers, and allow you to skip the junk, save the time and only encounter the coolest Kickstarters available.
To get in on these sales and really kickstart your business, you need to play on this level – you need to be on the popular pages and dominate.
Funding’s a flywheel, this is how colossal Kickstarter successes are created.
5. Mismatched marketing isn’t effective
Kickstarter success almost always comes down to marketing success which is largely determined by effort.
You’ll be pitching publications until your fingers tire, your mind fades and you fall asleep at the computer – anything to make it happen. One big blog post, one exclusive or product review, this can make a massive difference in funding and getting that kind of exposure takes effort, brute force effort.
Well, what happens when you split this time and energy between campaigns? Not only can’t you pitch both projects to journalists and bloggers, but even press finding your story will be a bit confused and put off by your disjointed goals.
6. More options makes things confusing
Most of your network just wants to help. Ask nicely and a nice portion will do anything within reason to help support your success.
Making decisions makes it hard though. They want to do the right thing, the best thing and impact your success as much as possible. Well unfortunately this desire freezes people in their footsteps. Which first, what do I do, is this what he meant…?
Simple sells, complex confuses – so make it easy and reduce stress for everybody.
7. Backer bias against being the “other woman”
Crowdfunding could best be described as company launching with a cool personal touch. Your story and mission are as much a part of your success as your product (game-changing technologies excluded).
Well, the trust and loyalty you seek and need to cultivate with backers is irrevocably damaged with a multiple-campaign approach. With two options, suddenly someone becomes just a source of money, rather than a meaningful part of the story and business.
People want to feel important.
8. More work, less results
There a new post coming soon on the disconnect between hard work and results and this certainly ties in nicely. Launching campaigns on Kickstarter and Indiegogo at once requires significantly more work than a single platform launch, and although I’ve not got the stats to prove it, I’m pretty sure would return a pityingly small amount more at best. Honestly, I’d expect much worse total results but these are mere biases and beliefs, so if you’ve done it yourself please add some insight in the comments!
80/20 – more is less and less can in fact be more.
9. Fulfillment’s a freaking nightmare
One of the biggest and most unexpected hurdles crowdfunders face following a successful Kickstarter or Indiegogo campaign is fulfillment, especially on-time delivery. From manufacturing mishaps, actually communicating with backers and getting shipments, labels and packaging perfect – it’s an enormous hassle.
Well, multi-campaign Kickstarters are infinitely worse. Suddenly you’re dealing with two different platforms, two different backer bases and the fight simply to stay afloat becomes much more difficult.
10. Extra rules and regulations
Indiegogo and Kickstarter are the undisputed champions of crowdfunding. Despite their success though, they are inherently different and competitive.
For you this means each platform will have different procedures, requirements and gate keepers to communicate and confirm with to make your funding fruitful. Double the work, increased odds of issues and more people potentially able to pull the plug on your project – sound fun?
11. Win-Win or Lose
Finally, the finishing blow, the worse case scenario of dual crowdfunding: What if your Kickstarter collapses but your IGG ignites? What do you when backers are raging, half your supporters are inflamed and you as the entrepreneur you need to find a way to salvage your startup and reputation?
This is the horror scenario, something I’d not wish on anyone. So before you bypass the advice and go straight to blast off, consider the crippling hell this type of unwinnable situation would put your business in.