Jules
3 min read
Mar 8, 2017

Key Points:

  • One of the biggest reasons for failure in crowdfunding is when you are presenting a concept or a product that doesn’t seem to be solving a real problem
  • Do not try to sell to the crowd with a product that sounds too good to be real
  • Be very articulate and strategic while preparing your campaign story and avoid unnecessary frills and laces

There are hundreds of formulas that bring the ultimate crowdfunding success to you. However, if you study the patterns of the failed crowdfunding campaigns, you can easily find a quick breakdown of what to avoid. Prepare and create your own successful crowdfunding campaign, by picking up a few precious pearls of wisdom from others’ crowdfunding projects mistakes.

Therefore, to guide you on what are the things to avoid while you are working on your crowdfunding stint, we are bringing you this article. Listed below are the top 13 causes behind the unsuccessful crowdfunding campaign:

1. A Half-Baked Idea

When an idea strikes you, let it sink into you completely before you begin to draw a campaign around it. Thorough market research and study of the potential competition is absolutely crucial.

One of the biggest reasons for failure in crowdfunding is when you are presenting a concept or a product that doesn’t seem to be solving a real problem. Achieving success in crowdfunding demands you to work hard, be methodical, and be strategic. Taking a leeway or a shortcut is sure to doom you.

2. Product With Too Much Icing

Crowdfunding is about convincing the masses about your idea. It is not exactly selling because you do not have a ready product with you in the first place. The product will come to life once it is successfully crowdfunded.

Therefore, do not try to sell to the crowd with a product that sounds too good to be real. People want to support a product that is feasible and achievable within a stipulated period. A product with too many frills and laces may seem unreal to the masses and lose its sheen.

3. Product With Little Value

When you are approaching the crowd for funds to make a product or an idea happen, the first thing you will need to explain to people is which problem exactly is your product solves. Nobody would be interested in putting their money on a superficial product that hardly generates value or meets a need.

Also, if there is another great product solving the same problem as yours, doing rounds in the market already.

4. Rewards With No Appeal

One of the biggest attractions for people in crowdfunding is the reward they will get in return. You will need to be extremely creative here. The reward should lure in the people to your campaign. Think of rewards that money otherwise can’t buy.

For example, first access to the product at a discounted price, your name featured as producers or sponsors of the project, the lead singer of the band singing for one of your private parties, etc.

{{ get-a-free-quote-for-your-campaign }}

5. Bad Communication

How are you communicating with your backers or prospective supporters speaks a volume about you? When I say communication, that would include not only what you speak to the crowd, but also if you are getting the expected replies.

Your campaign page should display strong interaction. Understand that the crowd is scrutinizing each and every statement of yours. Instead of communicating what you think, you should aim to avoid any kind of miscommunication occurring.

6. No or Low Promotion

If you believe that you upload your campaign on a crowdfunding platform and your project will be on autopilot, you are wrong. It takes a lot of slogging and preparation to attain success in crowdfunding. Work on creating a potential email list.

You will need to design a very efficient and staunch pre-launch strategy to spread the word about your project. Also, PR and media outreach is imperative in reaching the masses. Just like any other business or campaign, the merrier is the rule here too.

7. Undermining the Power of Offline Promotion

Yes, social media is the exuberant energy these days with a proven track record. But, do not undermine the importance of doing promotion in the physical world.

Attending and conducting seminars, conferences, competitions, and events are significant. On such podiums, you get not just support, but essential insights too that can help you improve your product before you do the official launch.

If you are creating a product and would like to discuss it amongst the real crowd, you can go to the HAX conference happening in Shenzhen city.

CROWDFUNDING CAMPIAGN IDEAS

8. Picking the Wrong Crowdfunding Platform

Which crowdfunding site you launch your campaign from can be a crucial decision. It literally holds your ticket to success. Carry a thorough study of all the platforms like their success rate in your category, demographics of the backers, total funds raised, etc.

Also, there are various niche crowdfunding platforms like medical research, mobile apps, games, college funds, filmmaking, etc. Going to a niche crowdfunding platform gives you immediate access to thousands of backers who are already searching for you.

9. Unjustifiable funding goals

When you raise funds through crowdfunding, it is not for retreats. It is meant for executing the project and only that. Therefore, calculate how much you need and ask no more than the survival funds from potential backers.

A campaign that cannot justify the number of funds it is trying to raise may look like a scam to audiences. Apparently, in that case, your project may face widespread rejection straight away.

It is recommended to set a lower goal than what you need, no matter the number of backers. In that case, you reach 100% faster and are lined up for getting over funded. That is a thumbs up for your campaign. However, if you aim too high, chances are you never reach the 100% mark.

10. No or Poor Quality Video

Telling your story through a video has a bigger and deeper impact. Therefore, do not give it a miss or you will reduce your chance of success.

Also, your video should be able to captivate the masses. Your video is your opportunity to speak to the audience up front and create a need for it. It should have good sound with no extra noise. The length should be just appropriate. Avoid any kind of beating about the bush in the film and get to the point immediately when raising money. End your video with a candid call to action.

11. Redundant Story

Crowdfunding is an art of storytelling. Your saga should echo your passion and your value system. Lengthy campaign script with no value or sense will fail to attract people.

Keep it concise but comprehensive. Be very articulate and strategic while preparing your high quality campaign story and avoid unnecessary frills and laces. Besides, if you do think that these frills and laces are an important part of your campaign, you can always put them. However, prefer doing it on a separate landing page that is linked to your campaign page.

12. Not Ready With a Lead Line of Investors

If you are not ready with your initial investors, you are making a blunder. Try to fuel at least 30% of the funding goal with the help of your friends and family. As per Indiegogo, 42% of the funds are generated in the first three days and the last three days.

Think of a scenario; you get the first 30% of your funds within the first three days. In that case, you begin to trend faster. Promote this with an impressive PR and media outreach, and you can be almost certain of achieving 100% of your goal. If you fail to attract supporters in the initial days, chances are your project will never see the sunshine.

13. Protect Your Idea

One of the aspects of crowdfunding is protecting your idea. When you go to a crowdfunding portal with your project, the chances of you winning it and losing it are equal.

In case you lose the game, there could be someone else who found your idea appealing and begins to create a project or a product around that. That will nullify your chances to come back with your campaign in the future when you are better prepared.

Intellectual property theft is a widespread problem in Crowdfunding. Therefore, do give the legal safety net to your idea with patent, copyright, or trademark to ensure that no one is able to steal your brainchild.

Conclusion

A good campaign is one that is energetically presenting a cutting-edge out-of-the-box product that people can connect with instantly.

The next essential component for achieving crowdfunding success is a proper promotion of the campaign; not only in the pre-launch stage, but also when the campaign is live and running.

Proposed rewards, setting funding goals, and legal protection of your idea are some other crucial aspects of crowdfunding where you can’t go wrong.

{{ protect-your-crowdfunding-budget-from-cost-creep }}

TABLE OF CONTENTS

Key Points:

  • One of the biggest reasons for failure in crowdfunding is when you are presenting a concept or a product that doesn’t seem to be solving a real problem
  • Do not try to sell to the crowd with a product that sounds too good to be real
  • Be very articulate and strategic while preparing your campaign story and avoid unnecessary frills and laces
Get Your Ship Together.

By submitting the form, you agree to receive marketing emails from Easyship.

Save up to 91% on Shipping. Try for free.

Effortlessly compare 550+ courier services with one global account. Instant discounts. Start in minutes.

Shipping Internationally? Unsure What Tariffs or Duties Apply?
Try our FREE Tax & Duty Calculator

Trying to stay up to date on the latest cross-border shipping and import requirements? Get an instant estimate of all applicable taxes and duties for every country across 220+ global destinations or sign up and take advantage of our in-built HS Code lookup tool.

Calculate Tax & Duties Instantly (Free Tool)
Ready to Stop Overpaying for Shipping?
Try our FREE Shipping Rate Calculator

Looking for the cheapest way to ship a package? Get an instant shipping quote and compare rates from 550+ courier services across the United States, Canada, UK, Australia, and more. Simply add your package size and delivery location, and you'll find the best deal in seconds.

Calculate Rates Instantly (Free Tool)
Planning Your Campaign?

Get in touch with us now and our shipping consultants can give you a detailed quote and additional info to help with your campaign.

Get in touch
The Cheapest Shipping from USPS, UPS & FedEx

Find the guaranteed cheapest rates for any courier in seconds with Easyship’s free shipping rate calculator. Compare discount rates from USPS, UPS, FedEx, and 250+ couriers at a glance.

GET RATE QUOTES FREE
The Cheapest Shipping from USPS, UPS & FedEx

Find the guaranteed cheapest rates for any courier in seconds with Easyship’s free shipping rate calculator. Compare discount rates from USPS, UPS, FedEx, and 250+ couriers at a glance.

GET RATE QUOTES FREE
Get in touch with our fulfillment experts!

We believe simple pricing is the best pricing. Get a quote with a simplified pricing structure and no hidden fees.

Contact us
Need help fulfilling your crowdfunding campaign?

We provide the necessary tools needed to keep you on budget for shipping and to safely deliver your product to backers around the world.

Learn more
Try our duty & tax calculator!

Need to estimate your shipping duties & taxes? Our calculator can give you an idea of what to expect.

TRY IT NOW
Save up to 91% on Shipping. Try for free.

Compare 550+ courier services with one global account. Start in minutes.

GET STARTED FOR FREE
Get a Free Quote for Your Campaign

Receive a personal cost estimate for your crowdfunding campaign from our trusted global fulfillment partners. Easyship is a certified Indiegogo partner.

GET FREE QUOTE
Looking for great rates from a top courier?

Save up to 74% on UPS shipping rates by shipping with Easyship. You can run a quote and generate your first shipments in literally minutes!

SHIP WITH UPS TODAY
The cheapest way to ship for eCommerce

Get instant access with volume-discounted shipping rates. Save up to 89% off on USPS, UPS, FedEx, and more. Easyship is free for 50 shipments each month.

SIGN UP FREE TO SAVE
Find your perfect fulfillment partner with expert help

Let Easyship connect you to the largest shipping and fulfillment network on Earth. You’ll find trusted partners for all things logistics. Guidance is free from our global shipping experts.

ASK AN EXPERT
Don’t miss our money and time-saving features!

Explore the powerful features that 100K+ merchants use to ship smarter, not harder. Shipping automation, live rates at checkout, live duty and tax – all free to try with Easyship.

EXPLORE ALL FEATURES
Start saving on shipping in seconds

Create your free Easyship account to streamline shipping and save with discounted rates. No hidden fees. No minimums. Just savings.

CREATE YOUR FREE ACCOUNT
Create Your Shipping Policy Free

Use our guided walk-through to build the perfect shipping policy for your eCommerce business.

CREATE YOUR POLICY FREE
Looking to intergrate your Shopify store?

With 550+ pre-negotiated shipping services available with discounts of up to 91%, you can save time & money today when you integrate your Shopify store with Easyship

REGISTER FOR FREE
Use Easyship Free Every Month

Easyship is free to use for 50 shipments every month. You’ll save big on our discounted shipping rates up to 91% off, and save time with smart automation. Signup is fast and free.

CREATE YOUR FREE ACCOUNT
Don’t miss the key steps to fulfillment success

Follow the easy path to fulfillment success. Easyship’s free fulfillment checklist provides a proven step-by-step so you can ship at scale without the guesswork.

VIEW THE CHECKLIST
Ship for less with any courier, guaranteed

Save up to 89% off all shipping rates. Easyship offers the guaranteed cheapest volume-discounted rates on the market from USPS, UPS, FedEx, and 250+ global couriers.

SIGN UP TO SAVE
Don’t miss all our money and time-saving features!

Explore the innovative features that 100K+ merchants use to ship smarter, not harder. Shipping automation, live rates at checkout, live duty and tax – all free to try with Easyship.

EXPLORE FEATURES
Want the cheapest rates?

Register for an Easyship account today and you will gain access to the cheapest rates, instantly.

REGISTER FOR FREE
Watch out for international duty and tax!

What exactly does it cost to ship cross-border? Use the free duty and tax calculator from Easyship to view accurate import costs for any shipment to anywhere.

USE FREE
Protect Your Crowdfunding Budget from Cost Creep

Prices are rising, deliveries are slowing. Get up to speed on the state of crowdfunding shipping with expert Easyship analysis and keep your campaign on budget.

LEARN MORE
Discover the Cheapest Shipping from USPS, UPS & FedEx

Find the guaranteed cheapest rates for any courier in seconds with Easyship’s free shipping rate calculator. Compare discount rates from USPS, UPS, FedEx, and 550+ courier services at a glance.

GET A FREE QUOTE
Discover Your Cheapest Way to Ship

Find the guaranteed cheapest shipping in seconds with Easyship’s free shipping rate calculator. Compare discounted rates from USPS, UPS, FedEx, and 250+ global couriers at a glance.

COMPARE RATES FREE
Compare the best rates in seconds

Get an instant estimate of the cheapest shipping rates with our free calculator tool.

GET FREE RATE QUOTES
Save money on every shipment

Save up to 91% off shipping with Easyship’s discount courier rates. Create your free account to save instantly on 550+ courier services, including USPS.

CREATE YOUR FREE ACCOUNT
Ready to ship internationally?

Get help from our global shipping experts on warehousing, global shipping and to connect with our network of trusted 3PLs.

GET FREE SHIPPING TIPS
How’s Your Covid Shipping Policy?

Use our free shipping policy generator to formulate your safest, most customer-friendly shipping policy in seconds.

GET YOUR SHIPPING POLICY
Try Pre-generated Return Labels For Free

Register for an Easyship account today and get 30-days access to a Premier plan with access to Pre-generated Return Labels.

Generate Return Labels Today
Discover the Cheapest Shipping from USPS, UPS® & FedEx

Find the guaranteed cheapest rates for any courier in seconds with Easyship’s free shipping rate calculator. Compare discount rates from USPS, UPS, FedEx, and 250+ couriers at a glance.

GET RATE QUOTES FREE
Get Up to Speed On Covid Shipping

Explore our Covid shipping resources to make sure your shipment arrives on time and in good condition.

LEARN MORE
Free Shipping for the Holidays 101

Learn how the leading brands offer free shipping, calculate costs, and ship on a budget for the holidays in our free shipping guidebook.

LEARN MORE
Your Perfect Shipping Policy, Ready in Minutes

Use Easyship’s free shipping policy generator to formulate your perfect holiday shipping policy for returns, tracking, and more. Just follow the prompts and you’re done!

GET YOUR SHIPPING POLICY
Scale Your Growth Internationally With Pro Tips

Learn how to ship internationally without missing a step. Our case studies show you proven tactics for shipping worldwide from Easyship users who did it right.

READ CASE STUDIES
No items found.
Share on:

Related Articles

No items found.