Avoid These 7 Common Mistakes In Crowdfunding

By Guest Author | crowdfunding | September 15, 2020

For many startup businesses, crowdfunding has been a popular choice. And it’s not a surprise that startups would turn to crowdfunding to, at the very least, get their businesses off the ground.

By KRISTIN HERMAN

Now, while crowdfunding is a good idea for startups, it’s important to note that not every crowdfunding project is successful. Therefore, you should know the common mistakes made in crowdfunding, before you launch a campaign.

With that said, here are 7 of the common mistakes made in crowdfunding:

No Sufficient Research

“It’s not enough to have only the basics, when researching for your crowdfunding,” says Harry Jennings, a marketing blogger at Australian help and State of writing. “Just like you put a lot of thought into a business idea, you have to put a lot of thought into what you’re crowdfunding for. Plus, when you crowdfund, there are certain rules and regulations that you will need to follow, in order to make your campaign a success.”

In short, make sure you do your research, and ensure that you’re adequately prepared for starting a crowdfunding campaign.

Not Communicating With Potential Customers

When crowdfunding, you’ll have to do than just talk to friends and family about it. Plus, nowadays, word spreads quicker than just word-of-mouth.

Think of who your target audience is, and immediately reach out to them. When findingyou’re your target audience, consider the following:

  • Who would be interested in hearing my message?
  • Who would be interested in buying my product?
  • How can I reach my target audience?
  • How can I explain how and why customers will want to use my product? Or hear my message?

In other words, do your homework, so that you get a clear idea of who you’re marketing to.

Too Many Perks

Everyone loves getting perks. However, too many perks may do more harm than good. Unless you have a legitimate reason for offering so many rewards to people who donate to your cause, there’s no reason to reward that much to donators.

The key here? Start small.

Only offer a few perks. In fact, stick with 2 to 5 perks.

Plus, make those perks count. Opt for the most popular perks, or those that you believe people will gravitate towards, or those that you’ve heard people say that they’ve wanted.

To sum it up: don’t try to oversell yourself, or else you’ll scare off your leads.

The Wrong Platform

While sharing your crowdfunding campaign is essential to your cause, it’s still important to do so on the right platforms. Think about where your potential customers are. Think about where your industry is. Consider the parameters of your project, and be sure to choose the platform that’s best suited to your campaign.

No Set Goals

The truth is, you can’t start a crowdfunding campaign without setting some goals. When you set goals, make sure that they’re achievable; don’t limit yourself, and don’t opt for an impossible goal.

Your goals should involve the following:

  • A timeline
  • A budget
  • Checkpoints in your campaigns
  • How much you’re looking to raise in your campaign

No Digital Marketing Channels

“Nowadays, crowdfunding campaigns are showing up on digital marketing channels, so that they can stand out,” says Luke O’Dowd a business writer at Paper fellows and Boom essays. “That means promoting your campaigns on blogs, social media platforms, emails, and websites. If you don’t take advantage of digital marketing channels, then you might not stand out as much as campaigns that do utilize these channels.”

Not Listening To Feedback

At the end of the day, your customers are important to your campaign’s success. In fact, customers will be willing to send you feedback, whenever they feel they see fit. In other words, give them a reason to keep backing you and your product(s).

The last thing that you would want to do is refuse customer feedback. Refusing feedback will have you come off as arrogant and money-hungry. Don’t let that be you!

Therefore, whenever customers provide any feedback, you should listen to them, because not only will this help ensure your campaign’s success, but it could help you build a better product and brand that people will root for.

Conclusion

While crowdfunding can be a saving grace for startup businesses, it’s still imperative to know the common mistakes made, and learn from them. As you keep in mind these 7 common mistakes and avoid them, you’ll ensure that your crowdfunding campaigns are successful, and your startup business will thrive.

Kristin Herman is a writer and editor at Ukwritings.com and Academized.com. She also writes articles for online magazine and blogs, such as Essayroo.com. As a tech enthusiast, she blogs about the latest trends in technology and crowdfunding.