5 Reasons Why Crowdfunding Campaigns Fail

We keep hearing more and more news about people who made their dream come true using Indiegogo, Kickstarter, GoFundMe or another crowdfunding platform. In theory, it’s very easy: you have a product or a cause that needs funding, you put online and people race to support you because you and your dream are so awesome. But things don’t always happen this way; there are millions of campaigns that never reach their goal and are soon forgotten about. How do they get there? Here’s a list of the top 5 possible reasons why crowdfunding campaigns fail:

1. The product or cause is no good. I know no one wants to hear that, but it is true; not all dreams are made to be fulfilled because not all products are meant to see the light of day. Irrespective of your marketing budget, if your product isn’t something people love, they won’t fund it. So, before you post your campaign online, make sure this is something people need/want. Ask around or perform thorough research if the budget allows it.
2. Your pitch is not strong enough. This is especially true for humanitarian causes – you need to make people believe that this is a worthy cause. In order to achieve this, you need to be passionate about it yourself. If your passion, dedication and hard work can’t tell a story to the camera, people won’t fall for it. This is not a product that backers can purchase, this is you asking them to help someone else, so make sure you are invested in it enough to make it transpire through a short video.
3. You don’t have a (good) video. This one is a no brainer – no video, no funded campaign. Your crowdfunding video should look professional and, no matter what you are pitching, should have a human touch, so don’t be afraid to show off your colleagues and the founders. People love to see who’s behind an idea they love.
4. You don’t have a good network. Yes, crowdfunding is awesome, but it has its shortcomings. For instance, on Indiegogo, projects that aren’t at least 5% funded in the first 48 hours will never make it to the top. Buried among hundreds of thousands of similar projects, they never have a chance. So, before you launch, let everyone know about your project and ask them to make contributions, as small as they may be. It’s the booster you need.
5. Your goals are unrealistic. Do you really need $200.000 to complete that project? And, if you do, are you sure people will pitch in that much? Think about the size of your perks; how many people will have to buy them, on average, in order for you to reach the goal? Do you think there are as many people that are simultaneously interested in your product and crowdfunders?

Bonus: your perks could use an upgrade. You need to offer: huge discounts from the upcoming retail price, advantageous packages of two or more products and…some emotion. Add a personal touch to each of your perks, otherwise people will never buy what you’re selling even if you’re doing it on a crowdfunding website where all dreams seem to come true.

Got a great idea and want to crowdfund it? Get expert advice to ensure your success:

Photo source: leardon.com