6 Crowdfunding Mistakes to Avoid

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The modern systems that are in place to support crowdfunding can make it seem effortless. However, it would help if you never lost sight of the fact that, whenever people are vying for money, there’s likely to be very steep competition.

Don’t fall into the trap of assuming that asking for money to support the launch of a great product or service is a walk in the park. You will need to develop and follow a clear strategy to secure the funds.

Take a look at these top six crowdfunding mistakes and make sure you avoid them at all costs.

1)   Not Selecting the Right Platform

There are many different crowdfunding platforms available, and they all have different things to offer. You need to make sure you choose the platform that is aligned with your needs. Consider the campaign that you hope to implement. Consider which of the platforms that are available offer functionality that is aligned with your objectives. Choosing an unsuitable platform will undoubtedly lead to failure.

2)   Failing to Use the Right Marketing Messages

Too many entrepreneurs fall into the trap of focusing their marketing on their product or service features. People don’t buy features; they buy benefits. It’s not about you; people want to know what your product or service can do for them.

3)   Failing to Maintain Relationships with Your Contributors

Make sure you maintain regular contact with your contributors, even after you have secured the funds. If you do a great job of delivering on your promises the first time, people will be more likely to put their hands in their pockets a second time if you launch an additional product or service.

4)   Not Asking for Money Often Enough

If you reach out to people and they don’t respond, don’t give up. People will typically only fund campaigns after being asked multiple times. Novice crowdfunding users are often worried about appearing obnoxious or pestering people. Don’t make this mistake. Use a variety of methods for contact, but keep asking.

5)   Not Stacking the Deck in Your Favor at Launch Time

People typically exhibit a herd mentality. If something is good for one group of people, they assume it’s good for them. Line up some friends and family to make some initial investments in your crowdfunding campaign. It will help you start right and make your product or service look like a sound investment.

6)   Failing to Incorporate Video

Videos enable you to connect with members of your target market in a way that is not possible through written words alone. Take the time to produce a compelling video that showcases the benefits of your product or service.

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Monica Davis

Monica Davis

Monica Davis is an entrepreneur, award-winning brand narrative strategist and media consultant who helps high profile individuals, CEOs, and entrepreneurs develop effective messages and stories, and reach larger markets. She is also the publisher of Exceptional People Magazine, a professional and business development publication. Her work has been featured in Bloomberg BusinessWeek, USA Today, WorldNews, YahooFinance, CNBC, and more.

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