9 Pitfalls of a Traditional Crowdfunding Campaign
Crowdfunding opens up a new world of opportunity to startups and individuals to raise funds for any purpose. Crowdfunding is convenient and has the potential to reach a wider range of investors and donors, but traditional crowdfunding is not easy. It requires much thought and effort. Most of the crowdfunding projects fail due to inadequate planning.
Following are nine reasons as to why traditional crowdfunding campaigns fail:
1. There’s Not Enough Buzz
When it comes to a crowdfunding campaign, you have to hustle to create the buzz around it, convincing others that people are really “hot” on your idea.
2. There’s Not Enough Incentive
No matter what your crowdfunding campaign is focused on, those contributing need some kind of incentive to give their money – product and/or service. They need to know what they will get out of the deal.
3. You’re Not Understanding Your Target Audience
Often companies feel they have a great idea but fail to test it out before creating a crowdfunding campaign.
4. You Have No Proof of Concept
An incredible pitch is crucial for crowdfunding and can make or break landing an investor.
5. You’re Not Showing Your Audience How They’re Connected
Beyond the list of takeaways for certain contribution amounts, most campaigns don’t really connect with their audience of potential investors because they never say what the product or service will do for them.
6. You’re Using Low Quality Video
Make sure your video is shot professionally, edited and polished. Stories are the best way to sell anything and the only way you can effectively do that on crowdfunding campaigns is to have the right video to deliver the message effectively.
7. You Fail to Build Trust
Most crowdfunding projects fail because the campaign doesn’t build enough trust. Be trustworthy in your video, be realistic with your claims, and make a quality campaign page with good images.
8. Your Product Doesn’t Solve a Problem
Let’s start with the No. 1 reason that crowdfunding campaigns succeed – your product solves a problem. If your product doesn’t solve a problem, you likely won’t succeed.
9. You Set the Wrong Goal Amount
In crowdfunding campaigns, image is everything. If, within the first few days, your campaign is not able to achieve its funding goal, reporters coming to your page won’t write about it because it will appear like a doomed campaign, and backers won’t back you for the same reason.
With our family of cooperative crowdfunding platforms you will not have to deal with any of these pitfalls. Our cooperative crowdfunding systems turn givers into receivers creating a Win, Win for all participants. Choose your platform and get started raising funds today.