Crowdfunding isn’t “Easy-Money”

Crowdfunding has become an immensely popular choice for individuals and groups looking to launch and build support for ventures they are passionate about. Even with the explosive growth the micro-pledge industry has experienced, the details and requirements of running a crowdfunding campaign can still be blurry to those who are interested in taking advantage of the opportunities it holds.

What do inexperienced Users think when they’re preparing to Launch

their Crowdfunding Campaign?

Illusion #1

“Running a Crowdfunding Campaign

makes your Project Unique.”

Thousands are Crowdfunding.

• Crowdfunding is exploding worldwide

• Thousands of individuals are doing exactly what you’re doing

• Friends and family won’t be enough to get to you to your goal

• Details, mission, and goal of your project are crucial to success

• You have to be different and convincing

Illusion #2

“There will be a ton of traffic coming to your

campaign page.”

You’re responsible for the Crowd.

• You must build a following before you launch your campaign

• Platform browsers probably won’t be enough to push you forward, so don’t depend on them primarily

• Users are interested in specific offerings, not just platform projects

• Your target customer needs to be discover, engaged, and directed to your campaign page after months of communication

Illusion #3

“Money will come flying in from all

of your supporters.”

Converting Traffic isn’t Easy.

• Not everyone in your Crowd will pledge your campaign

• Relationships and trust are key to conversions

• Aggressive marketing is necessary to continually bring in new prospective pledges

• Even without giving money, support can still come in the form of shares or feedback

Illusion #4

“Budgets aren’t as necessary as

Traditional Startups.”

You’re still spending Money.

• Crowdfunding and traditional startups share many of the same risk and investment characteristics

• Even though you’re raising money, personal investment is necessary

to get you campaign running

• Prototypes, videos, press releases, advertising, staff, and more will be out-of-pocket costs before you hopefully hit your goal

• It always takes money to make money, but hopefully you’ll break even or make a slight profit if your goal is met

Illusion #5

“Since there are no Investors, your background isn’t

as important.”

You have Hundreds of Investors.

• Great products sell, but emotional appeal converts backers

• Backers want to know who you are, who your team is, where your missions stands, and why you’re doing what you’re doing

• Most support will come from people that want to support you for your mission, not specifically for what you’re offering

Illusion #6

“The more platforms you launch on,

the better.”

You need to Concentrate your Efforts.

• You can’t handle more than one campaign at a time

• Even if you think you can, you shouldn’t confuse your backers with multiple campaigns

• Running multiple campaigns may sound smart but will absolutely segment and dissolve your marketing efforts

• If your project’s future relies on your crowdfunding success, all traffic needs to be heading to your campaign page

Review of CF Misconceptions

• It makes you Unique

• Traffic is Provided

• Backers are already Motivated

• Budgets aren’t that Necessary

• Backgrounds don’t really Matter

• The more, the Better

Understand the Reality

Crowdfunding is full of potential and could be the answer for your next venture, but make sure you fully understand the background details before diving in. Without a full understanding of all the moving parts and requirements for a successful campaign, you could wind up wasting a lot of time and money on a failed campaign, and could ruin potentially profitable relationships with your backers if you don’t deliver.

Do your Homework

Don’t let this warning keep you from exploring the possibilities of running a crowdfunding campaign, but instead as a look into the reality of the industry. Let it motivate you to do your homework on the crowdfunding industry, find out what works and what doesn’t, and push you to create and launch a successful campaign!

Get more content at Blog.Crowds.io

Join our Platform at Crowds.io

Interested in learning more about Startups and Crowdfunding?