Most crowdfunding campaigns fail, in fact, over 60% of campaigns do not reach their goals and actually get funded and while there may be many reasons for this, one huge reason stands out. Most campaigners fail to understand the components of a crowdfunding campaign and manage them properly.
Component one: this is the actual substance of the campaign. The product or service; how you envision this and why should anyone invest or donate to this project; your organization and team, do you have the resources to make this happen if you get funded; presentation materials, how you communicate this to audiences.
Component two: the crowdfunding platform you chose for our campaign. Is your platform known for your type of projects; what is the success rate of projects on your platform; what kind of audiences does your platform draw; what services do they provide as compared to other platforms.
Component three: this is probably the key to success but keep in mind it cannot be done successfully without the first two components. You must have a solid marketing communications plan. Do not make a mistake and think that “build it and they shall come” is a marketing strategy or that by listing on a platform droves of investors will be reviewing your campaign. Or that the platforms will provide you with marketing and help you build your investor audiences – they won’t.
The bottom line is that marketing, building an audience, reaching out to investors and ultimately the success or failure of your campaign is solely your responsibility. When researching platforms ask about marketing promotions and how they will help you promote your campaign – then plan to use what they offer for maximum effect. But then realize that solely relying on the platform listing and maybe inclusion in an email digest they send out will not be enough and research tools and strategies that will help you be successful.
Want to know more about building a successful marketing campaign for your project, follow the guidelines for a successful IPO and read the post here.