Did you know that the crowdfunding industry projects to raise $95 billion each year by 2025? Want to launch a successful crowdfunding campaign but unsure how? We’re here to help you!
Crowdfunding is a BIG business. You could win big, but you can also lose even bigger. Yes, it takes a lot of time and work and there are no shortcuts to achieving success here.
So how do you optimize your campaign for success? To get started, here is a compiled checklist of 5 common mistakes to avoid for successful crowdfunding.
Not Being Transparent
Whether you’re a start-up or an established business, you need to be transparent. You need to be completely honest about everything including:
- Who you are
- What your project is all about
- What your goals are
- What mistakes you make
Great crowdfunding starts with transparency. Remember, transparency enhances credibility. If you are transparent, people are more likely to reward you with trust.
Feeling uncomfortable now? Don’t be! We promise you, it’s worth it.
Provide as much information as you can about your business. Answer their questions and explain why you need their support. By doing so, your investors will feel more comfortable with your company.
Give them a heads up if there’s a delay or if you foresee a problem. Warn them about the obligations that you may fail to meet. Keep them updated on the project’s progress.
People don’t mind problems (unless it’s a problem with no solution at all). But, we also don’t like it when companies keep us in the dark. So communicate often and keep your people informed.
Avoid Ineffective Campaign Marketing for Successful Crowdfunding
Achieving success in crowdfunding means avoiding ineffective marketing. Do not under-invest in marketing. After all, it takes money to raise money.
It’s not enough to just invite your family, friends, customers, and clients to invest. You need to extend your reach. Use social media platforms such as:
Through these platforms, you can further boost your credibility with informative and relevant posts. You also want to respond to comments as fast as you can. This shows how dedicated you are to your campaign and to whatever product you are selling.
Manifest awareness and keep it alive throughout the campaign. Tell people that your campaign exists! And don’t forget to keep everyone’s interest so they will not only invest in it but also spread the word about it to others.
Invest in creating quality content, videos, and images for a successful campaign. Make a well-developed story, not a boring one. Share your enthusiasm for your project to the backers.
Write your video-script and do not ever give your target audience a low-quality video. You want it to look professional and visually appealing. Showing people what your business does will improve your success rate.
The same goes for your photos. Remember, the presentation is important. You want people to share your campaign, don’t you?
Not Paying Attention to Your Website
You need to have your website up and running at all times. Nobody wants to waste time on a slow and crappy-looking site.
Pay close attention to your website as it helps validates your legitimacy. Supporters want to see more about your company. So make sure you have your top quality content ready.
Remember, content is key. Make sure that your landing page contains all the information that your target audience wants to see. Tell them why you deserve their support.
The description of your project should be realistic. Be honest and straightforward. Focus on what makes you stand out from others.
Avoid Lousy Pre-Marketing Strategies for Successful Crowdfunding
Did you know that one company raised $1 million in 7 days? Sounds too good to be true? How’d they do it?
Aside from using one of the best crowdfunding platforms, you can also avoid lousy pre-marketing strategies and use effective ones instead. You can let everyone know about your campaign before its official launch by using:
- Gadget Flow
- Campaign Monitor
These tools can help you gain more audience before your launch date. We also recommend using Facebook Ads. By using this, you can get more email subscribers and send newsletters to those interested.
So, we recommend gathering as many emails as you can. More emails mean better a chance of success.
Do your research and find the best tool that you can use for pre-marketing. Make the most of these tools as they can help you reach more backers.
Another strategy you can use is to give your influencers a sneak peek of your campaign. You can never go wrong with teasers. Give them a glimpse of your crowdfunding video so they can start writing about your product.
Don’t Set Unrealistic Goals for Your Crowdfunding Campaign
So you want $400,000 and only raise $20,000. Don’t expect to get any of it. The money will just go back straight to your donors.
A higher goal doesn’t always give you more money. Setting a reasonable goal can give your family, friends, supporters, and followers more confidence. This happens especially when you reach it at an excitement rate.
Crowdfunding requires you to be smart and realistic. Avoid setting unrealistic goals! Set a realistic budget.
A realistic budget also means that you need to account for all expenses. Never forget the expenses involving the rewards you promised to your donors.
Launch a Successful Campaign Today!
Show your donors that you can effectively raise money. They will not only support you on your second campaign but will also spread the word to more potential donors.
Bear in mind that there are some crowdfunding sites that won’t even give you a cent if you fail to hit your goal. If you raise more money than you expected, that’s great. Always remember not to go overboard to the point that you don’t get of the fund at all.
When it comes to choosing you crowdfunding platform, don’t forget to pay close attention to every detail. Doing so will help you understand how their system and payout work.
If you want to learn more about successful crowdfunding, don’t hesitate to contact us and check out our blog.