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The limits of Crowdfunding: 10 Reasons on why your Campaign won’t work

The limits of Crowdfunding: 10 Reasons on why your Campaign won’t work

There’s widespread optimism for crowdfunding, fueled by the incessant campaigns by creatives and entrepreneurs alike. Campaigns reaching us are all amazing, from wild artistic projects to engineering feats by gadget inventors, from the Pebble Watch project to the Double Fine video game. Then, success stories with hundreds of thousands if not millions of dollars figures hit the web.

After following closely dozens of crowdfunding campaigns, plus also seeing statistics from major crowdfunding platforms, it’s important to stress that many crowdfunding campaigns are not successful. What’s more worrying is to stumble upon creative projects, with well-prepared campaigns, that don’t get crowdfunded. It’s puzzling, especially after all the positive press you might have been reading. It’s possible to see why though. Here are the top 10 reasons why your next crowdfunding campaign won’t work

Top 10 Reasons why your crowdfunding campaign won’t succeed – An infographic by the team at SeedingFactory

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NO CROWD

You jump on the crowdfunding bandwagon but have no crowd, and start a facebook page or a twitter account a week before your campaign. Do you think you can get a crowd’s trust that fast?

NO TANGIBILITY

You’re presenting a dream that everyone likes, but can’t offer anything tangible: no prototype, no pictures of someone using your product, no details on how it works.

NO REASON TO CROWDFUND

Doesn’t crowdfunding seem like magic? You publish any idea on a platform and you get a few thousands in your bank account. Well, sorry to disappoint, but you’ll get burned by the crowd. Crowdfunding campaigns are successful because there are specific reasons: a deadline, an imminent peril or success, or a very solid business case where the backer gets 100% of their money.

NO FUNDING EXPLANATION

It’s too easy to ask for $10,000 or $50,000, or another unsubstantiated figure. The crowd is not stupid! Have you done your homework? The funding goal should have a solid explanation

NO OUTREACH

Many believe that they’ll put their project on kickstarter and ride on the network effect. Did you know successful project creators brings in 20% funding from their friends and family; and also brings in 60% of the visitors traffic? If you’re lucky, Kickstarter or indiegogo might feature you in their newsletters, but that comes in at late stages.

NO PREPARATION

Here’s one tip: the more you work on your project before, the higher the chances of success. It’s not about starting a campaign to see if your idea or project has legs. It’s about starting your project first, and then using crowdfunding when you’ve got a working proof of concept, plus many fans believing heart & soul in the project.

NO STRONG OFFER

Crowds love to back projects that stand out. Did someone else did the same project before? Is there novelty worth sharing? Why would anyone care?

NO VIDEO

Statistically, a video doubles your chances of success. Voilà

NO STORY

A video is not a powerpoint. Understand what the video medium is: it’s about emotion, strong graphics, faces with expression, creativity, and much more than graphics.

NO PERSONAL WORK

Every day, I see campaigners copying & pasting text and documents from what they see successful campaigners. This is like copying’s someone else copy in exams. Every word should be come from you and be authentic. Don’t copy the structure, the headline, or anything else.

If you recognize yourself in a reason above, seek our crowdfunding advisory services. Sometimes, it’s just about correcting how you present your project. Sometimes, there is much more work to do, but in the end, it’s about respecting the principle of crowd and crowdfunding.

  • Lenny Tizaul

    I currently have a campaign on Indiegogo because I’m in Canada, and were not allowed onto Kickstarter. My campaign has received a big zero $0 in funding since it began almost 30 days ago.

    I could blame myself, but I have a video on youtube that I spent several days editing and making.

    Anyways, to make it blunt, I tried to browse campaigns and try to find mine, as if I were a person wanting to donate. There’s absolutely no way of finding my campaign unless a person knows the exact campaign name.

    You are only offered ‘Popular Now/ Final Countdown /New This Week/ Most Funded”. If you aren’t in those categories, you’re campaign is essentially non-existent.

    The whole idea for crowd-sourcing websites is so that it streamlined the process so you could get funding alot easier than doing it the hard way: selling cookies door-to-door, collecting used bottles, etc.
    It defeats the entire purpose if now people are expected to do a whole lot more work when these crowdfunding websites take a 4%+ cut.

    • brakotozafy

      Hello Lenny,

      I’m sorry for your campaign, what’s the link?

      I just wanted to highlight that for any campaign you’re supposed to communicate by yourself about it.
      There’s also a rule of thumb that says that 20% of your funding should come from your friends and family (i.e. your own network).

      Best,

      Bruno

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  • nothando

    Thanks for the information. i have a campaign on YouCaring and like Chocolatini my campaign is at $0 and it’s been 25days. The way i see it, my campaign won’t raise any funds. I don’t have a video yet. Another setback in my campaign is that i know i will not get the 20% funding from friends and family simply because most do not have access to internet. I also do not have a facebook page… Doomed from the start right?

    • P Kennedy

      I do have a Facebook page and have had it since 2010 (reference above reason number 1 “no crowd”) but I don’t have a lot of Facebook “buddies” who have any connections whatsoever with anyone who either has any MONEY or who gives a rat’s ass about either further training for ME or the Deaf needing ASL interpreters!! I don’t think I should HAVE TO make my campaign “personal” – it IS a cut-and-dried, across-the-board UNMET NEED. Kind of along the lines of the Hurricane Katrina victims!! Anyway, my point was, I’m still getting Goose Eggs in all three of my accounts. So don’t think it’s just because you DON’T have a Facebook page. Your Facebook page would have to be well-connected to a bunch of millionaires.

  • P Kennedy

    I’ve noticed that the SUCCESSFUL college-funding campaigns are from Hearing kids and for “mainstream” colleges – how the hell do I get funded to attend Gallaudet for Sign Language Interpreter certification status – I have THREE campaigns out, gofundme.com, gogetfunding.com and fundbackr.com. It isn’t that complicated an issue. There IS a severe shortage of ASL-interpreter fluent people and a very LIMITED number of very expensive places to GET training. What’s wrong with people – or do I have to specifically target DEAF billionaires for this?? I’m beginning to think I’m going to have to win the damn lottery to pay tuition, here!!