30 Jun The Factors that Could Potentially Destroy Your Crowdfunding Campaign’s Success
Running a successful crowdfunding campaign is literally a full-time job. Approximately 60% of crowdfunders do not meet their monetary goal.
These factors play a critical role in projects not reaching their funding goals:
- Not enough time devoted to planning and promotion
- Project owner did not successfully engage their personal network
- Project owner did not develop and promote press relationships
- Campaign funding threshold was set too high
- No compelling video included in the presentation
- Project owner had little or no background to support their project
If you fail to plan, then you are planning to fail.
You didn’t jump into your business without ample research and you shouldn’t rush into your crowdfunding campaign either. In order to achieve the most successful start to a crowdfunding project, you will need to do some initial planning.
Here are a few things you should try to accomplish before starting your project:
Do Your Research:
Make sure to thoroughly research which campaigns are the most successful. You will need to crunch the numbers, evaluate marketing tactics and learn how to best utilize social media.
Define Your Goal:
Everyone that you are working with and pitching to should have a clear picture of your final vision. They will also need to know what makes you so passionate about your project.
Funding Goal Tip:
If possible, aim for a low goal amount the first time, so that your campaign is more likely to hit the 100% mark. Make sure your project goal is realistic. If your project is a physical product, be sure to factor in the cost to produce or purchase it, as well as the cost to ship it. Don’t forget to factor in platform fees when you are deciding on your budget and setting a fundraising goal.prepared
We cannot stress this one enough. Create lists for everything. Before you start your project, create lists for who you will contact (mailing lists, local newspaper, friends and family, neighbors, local businesses, interested customers, etc.). You will also need to create a list of perks/rewards that you are able to offer at each contribution level and a list of specific goals that you wish to achieve for your project with deadlines!
Know How to Get Popularity Rankings on Your Crowdfunding Platform:
It’s crucial that you understand how to get your campaign listed and featured using the crowdfunding platform. You need to know what factors will make it popular and use them to your advantage.
Your campaign begins at 0 Gogofactor when your campaign goes live. The higher your Gogofactor, the higher your campaign’s popularity rating goes up.
Help Getting Your Gogofactor to Go Up:
It’s estimated that roughly 50% of your Gogofactor comes from popularity generated via traffic. This includes any direct traffic, indirect traffic, referral traffic, and shared traffic that comes from social media. Your individual input and private traffic are also essential factors that will contribute to raising your Gogofactor. Make sure you can convince your private network to fund at least $1 each. This will help gain credibility in the community while raising your Gogofactor.
For Indiegogo, you have only one week once your campaign goes live to raise your Gogofactor higher than the average Gogofactor threshold at the time. If you manage to stay ahead of the average Gogofactor, your project will stay on the “Popular Now” list and you’ll have a higher chance of receiving direct traffic from Indiegogo and potential backers.
If you fail on the first week, you will need to work harder to receive the necessary backing and traffic to stay listed on the “Popular Now” list. If your campaign is not listed on the Popular Now list, it will not be visible to anyone unless searched by name on Indiegogo or seen in a referral link. You will only have one other chance to be visible on Indiegogo’s page via the “Final Countdown” list once your project is almost over.
Understand the Platforms Features:
Kickstarter and many other Crowdfunding platforms have similar systems. The key to success is figuring out how you can use these tools to your advantage.
This may be the most essential component of your fundraising project. Not only should you set yourself a detailed budget, but you should allow your fans and audience to see your budget. The more potential backers know about your project, the more willing they will be to contribute. Transparency is what makes crowdfunding great. Never forget, potential backers are investors, not shoppers. You are trying to sell your idea to investors for backing.
The length of the crowdfunding term can affect the success of the project. Generally projects between 30 to 60 days are the most successful. Shorter campaigns tend to lose out on potential traffic and backers, while longer ones tend to drag on and lose people’s interest.
Engage with Fans Early On:
Begin engaging with fans before the project even begins. Allow friends, family and social groups to know that you will be starting a project and where they can find it. A successful campaign needs a core group of supporters.
The Key to Success:
Don’t be afraid to venture outside of our promotion network. You never know who is willing to help you out. The key is to establish trust and seek out opportunities to pitch your campaign. You can get more visibility through your personal contacts.