7 Common Crowdfunding Mistakes ? Avoid These Pitfalls

by | Oct 27, 2015 | Financial Services

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Not everybody is cut out to be an entrepreneur, and not every entrepreneur is going to excel at crowdfunding. Before you launch your first campaign, there are a few tips on what to avoid in order to help increase your chances of success.

Too Long
Your pitch video is really important for your campaign, but it is not a feature film. Keep it short, catchy, to the point, with a clear ?ask?, and keep it to no longer than 3 minutes. A two minute cap is better. Yes, you?ll find lots of examples of crowdfunding pitch videos that are 8 or 9 minutes long, but there?s almost never a good reason to go that long. This is a promotional exercise, not an educational one.

Too Confusing
Your campaign profile needs to be pithy, brief, clear, and to the point. Nobody has time to read a lengthy academic essay. If you?re having trouble writing concise copy, get professional help.

Too Solitary
You need a team to launch a product, brand, and crowdfunding campaign. Not just because it is a lot of work, but because you need to leverage the social networks of each and every member of your team!

Too Similar
If your campaign, or product, or pitch doesn?t differentiate you from all the other crowdfunders out there, you?ll have a hard time attracting supporters. Research similar campaigns to get ideas about what works, what doesn?t work, what rewards were offered, what the videos were like, and then set out to create your own unique campaign.

Too Quiet
Your supporters want to hear from you! You want to keep them engaged and informed about how the campaign is progressing. Don?t make the mistake of thinking that you?re bothering someone who has contributed to your cause.

Too Shy
This will kill your chances of meeting your fundraising goal before you get started. You must be able to flat out ask for money. You may need to ask virtually every single person you know, virtually everyone they know, and you may have to ask more than once.

Too Late
Forgetting to figure out fulfillment until after your campaign closes is a classic rookie crowdfunding mistake. Before you launch your campaign think through all the details of the incentives you plan to offer contributors. Coffee mugs? T-shirts? Samples of your awesome product? How much will shipping cost? What portion of your funds raised will go toward fulfillment and what portion to your project? Know your budget, and carefully plan all your logistics around fulfillment to prevent a problem post-campaign.

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