We all know there’s no 100% success guarantee in crowdfunding, but there’s, for sure, something you can do to optimize and get your project funded as much as possible.
In our last blog we’ve shared tips on how to amplify your crowdfunding campaign: https://bonuship.com/en/blog/crowdfunding-fulfillment/how-amplify-and-promote-your-crowdfunding-campaign-top-secrets-revealed.
Today, we decide to go the other way round, digging into the situations that are likely to associate with the failure of a crowdfunding campaign
– and we’re happy to help with problem-solving!
Unrealistic funding goal
Evaluate your target audience and do an accurate estimate
The higher, the better? There’s no standard recipe for setting a funding goal.
Research has shown that campaigns that raise 30% of their goal within the first week are more likely to succeed (Source: Fundly).
Before you launch your crowdfunding campaign, you should consider the financial ability of your backers, how likely and how much they would invest.
Smashing a promising percentage of your crowdfunding target in the first few days gives your backers confidence and intention to catch on with your project.
Learn from your competitors, and find your niche among similar campaigns
Keep your backers close, keep your enemies closer.
Date back to as early as you ideate and plan your crowdfunding campaign – You should have an in-depth understanding of your competitors and look at how they’ve performed, so you get a whole picture of the competition ahead.
Here’s to build a foundation that serves to:
(1) identify your strengths and weaknesses;
(2) create unique selling points (USPs) based on your strengths and your enemies’ weaknesses;
(3) prepare your product to be capable of enduring the fierce competition; and
(4) find a niche with fewer alternatives and direct competitors.
Unclear value proposition
Tell your backers what to expect
We all wish to have someone who supports our dreams for no reason, but that’s beyond ideal. To backers, there’s no point investing in a project of others or if they can hardly foresee how they can be benefited from their investment.
While your backers may doubt and ask ‘why should I fund this’, you should convince with a powerful value proposition statement that answers the question. You can soft sell by telling them:
- How your project helps them achieve something that they couldn’t
- How groundbreaking your idea is compared to other ideas in the same niche
- How your project fills a gap that is yet to be explored
- __ (Your USP) __
- __ (Your Brand Story) __
At the end of the day, it’s to articulate why your crowdfunding campaign is worth investing in.
Lack of incentives
Reward your backers
Same mentality, different approaches. Who doesn’t like to get something in return?
As part of your promotional push, developing a reward program incentivizes backers to invest for a foreseeable future return, which altogether creates momentum to retain and acquire investors.
To illustrate, an early-bird incentive not only rewards early backers but also encourages people to invest at the early stage. You can also create a sense of urgency by running flash sales, or a sense of exclusivity by offering limited perks and deals.
Absence in community
Convey a sense of ‘We’
Use ‘We’ instead of ‘I’. Use ‘Our’ instead of ‘My’.
Give your backers a sense of involvement. There are plentiful measures that can be taken to build your community.
Establishing a pre-launch page is prevalently the very first step at which you can share everything about your idea to draw people’s attention and interests.
There follows social media - the all-time killer - where you can network and keep backers engaged with inspirations, relevant information, and the latest updates, thus addressing their concerns.
While you build your connections, you can utilize online analytic tools and lead magnets to build a list of ‘potential investors’ that helps you narrow down your target audience.
It’s all about turning ‘passersby’ into enthusiasts - ultimately investors and advocates.
With the global crowdfunding market projected to almost triple by 2025 (Source: Fundly), this is gonna be the next big thing that is worth exploring for your eCommerce business.