When it comes to crowdfunding projects, there’s one hard reality hopeful entrepreneurs must understand: the majority of Kickstarter and Indiegogo campaigns fail. They don’t hit the target. They don’t meet their goals. They don’t get the money they desperately need to move forward.
The good news: there are still many projects that do hit the mark, raising hundreds of thousands and even millions of dollars. By learning from others, you can steer clear of common missteps and craft a campaign that’s more likely to bring you success.
Here are some reasons Kickstarter and Indiegogo projects fail:
The Creator Does Not Spend Enough Time Promoting the Crowdfunding Campaign Before it Launches
It’s true that the first 24 hours of your campaign will be critical to the overall success of your project. However, simply setting up an account on Kickstarter isn’t enough. Many people forget that the true beginning is long before the project’s launch.
If you don’t give enough attention to promoting your project ahead of time, you likely won’t get the audience you need on that first day. The pre-launch phase should be used to gather leads or collect email addresses of those interested in your project so that you can reach out to them as soon as you launch. To be as prepared as possible, make sure you have your audience ready long before the big reveal.
The Project is Not a Good Fit for Kickstarter or Indiegogo
Not only should you follow the rules, but you also need to make sure your product is a new and interesting one that people can’t get anywhere else. After all, if it can be obtained elsewhere, prospective backers would likely go there instead, rather than waiting months for you to ship your project rewards to backers.
A recent study strongly supports this concept. Researchers found that “a single claim of novelty increases project funding by about 200 percent; a single claim of usefulness increases project funding by about 1200 percent.”
The Rewards are Confusing
Be prepared to offer rewards and make sure they are something that people will actually want. It should be easy for backers to understand what they get at each level and how much they’ll need to add for shipping. Since rewards are often the most expensive part of a campaign, get creative with your offerings.
The Funding Goal is Too High
When deciding how much money you want to raise through the campaign, you want to be reasonable and set the right goal. You need it to be high enough that you can fulfill your rewards, but no higher. Remember, it’s much easier to get new backers once you’ve already hit your funding goal, so you want to hit it as soon as possible.
The Crowdfunding Project Doesn’t Seem Trustworthy
Put yourself in the shoes of a potential backer. If a campaign looks like a scam, would you invest? Not likely. Neither will they. As Kickstarter states, “Our community is built on trust and communication.” Thus, make sure you convey trust through your campaign everywhere on the page, including copy, images and video. Be candid and as transparent as possible when explaining the product’s specs and development process. Thoroughly explain your timeline, and be sure to complete the risks and challenges section of the page.
The Creator Doesn’t Interact With Backers Enough
Make sure you’re communicating with backers frequently through updates, social media, comments, email and any other way they reach out to you. People who are interested enough to put down their hard-earned dollar will want to know how things are going. Tell them your story.
No one wants to face failure. To get more tips for creating a successful campaign and how to avoid some of the most common mistakes, learn as much as you can. Subscribe to our newsletter or tune in to our podcast.
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