Why do most crowdfunding campaigns fail? - iCrowdNewswire

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Apr 24, 2015 10:26 AM ET

Why do most crowdfunding campaigns fail?

iCrowdNewswire - Apr 24, 2015

You know the drill. While some people manage to raise millions out of a crowdfunding campaign, the sad reality is that most of them fail to meet their goals and eventually die in obscurity. And we are not talking about big money here. Some campaigns aim to collect just a few thousand dollars, but end up in the hundreds. Abysmal.

There are many reasons why a crowdfunding campaign fails, but all of them can be beaten with a very simple plan: getting professional help to build your campaign and to promote it, such as that provided by good professional crowdfunding advisors as well as promotional tools such iCrowdNewswire. We will, however, cover the three main aspects of failed campaigns.

  1. Lack of a good project: this is certainly the number one reason to have a failed campaign. People who are willing to dedicate time and money in crowdfunding campaigns want something that creates a positive impact on their lives or on the world around them. There are also some altruistic minds out there, whose importance should not be underestimated, who want to reward campaigns that turn the world in general into a better place. As such, projects with bold ambitions, that have the potential to reward people with a fairly good and innovative product or service that can make the world a better place, have more chance to succeed
  2. Lack of a good story: the world and its history is made of good stories (and we are not talking about the Hollywood ones). People are emotional. They want to be entertained and they want to give money to you if they think you are a good guy with good intentions. That’s true everywhere in the world and the crowdfunding market is not an exception. Remember that girl who raised money to pay for her tuition in Harvard? Or that ecological fish tank that can raise vegetables on top of it? Those are all good stories that catches people’s minds and hearts.
  3. Lack of promotion: build and they’ll come. The biggest fallacy created during the beginning of the internet still holds true to many people involved in crowdfunding as well. It’s not enough to just launch your campaign in a crowdfunding platform. You have to promote it. You have to have a good social profile in Facebook or Twitter to get in touch with your public and grow your audience. You must provide them with quality updates. You must have a good video that grabs the interest of your public. You must have a blog updated often, with helpful insights to your followers related to your campaign. Build trust and they will give you their money.
Via iCrowdNewswire
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