Overcoming Common Crowdfunding Challenges
Crowdfunding has become an extremely popular option for people, organizations, and businesses trying to raise money. In 2019, there were nearly 6.5 million campaigns held, raising $34 billion across the globe.
But, no matter what platform you’re using or what cause you might want to raise money for, crowdfunding has its challenges. Unfortunately, not all campaigns are successful. Kickstarter’s success rate, for example, is only about 37%.
If you’re trying to raise money and you want to be able to share a success story when your campaign is over, it’s important to understand what some of the most common crowdfunding challenges are, and how you can overcome them.
Effectively Utilizing Technology
Technology has changed the face of crowdfunding. Without it, people would have to rely on local fundraisers and donations to get the money they need for various causes or products. But, technology isn’t necessarily second nature to everyone. It’s not enough to throw a campaign on a platform, right a few lines, and expect to see success.
One of the challenges of creating a successful campaign is being able to utilize technology effectively. You have to think like a marketing professional.
Chances are, of course, that you don’t have a marketing background. So, start by doing your research to determine how you can connect with more people once you’ve created a campaign. If you don’t utilize what the tech world has to offer, very few people will likely see your fundraiser.
One of the best ways to use technology effectively is to share your campaign on social media. Twitter, Facebook, Instagram, and even TikTok all are great ways to spread the word about what you’re doing and make the campaign seem more personal.
If you really want to connect with people, consider social media live streaming. You don’t have to be a marketing pro or even a video expert to set up your phone and hit “publish.”
Livestreaming is a great way to express your real emotions about your fundraiser. It can add a much-needed human quality to what you’re doing, which helps to build trust, and it will allow you to answer questions potential donors might have in real-time.
Overcoming Lackluster Rewards
Most crowdfunding sites allow you to give donors/pledgers rewards or incentives. The higher amount they pledge, the greater the reward. Creating an amazing rewards program is crucial. Yes, people might want to donate out of the goodness of their hearts, but assuming everyone thinks that way will lead you to an unsuccessful campaign.
Not sure where to start when it comes to quality incentives? Consider some of the following:
- Custom clothing/accessories
- Personal shoutouts
- A copy of the physical product you’re campaigning for (if applicable)
- An invitation to an event you’re hosting
- A personal call from an influencer/celebrity attached to your cause
Get creative when it comes to handing out rewards, and make sure they line up with how much people are willing to pledge. When your campaign is over, make sure fulfillment is quick and efficient. It’s a great way to remind people why they donated, share your gratitude, and an additional marketing technique to keep your cause or business in their minds.
Moving on From Failures
Again, crowdfunding campaigns aren’t always successful. Even if you’re able to overcome most of the challenges and you have a great product, service, or cause, plenty of factors can keep you from reaching your financial goal.
That doesn’t mean your journey is over.
For aspiring entrepreneurs or anyone passionate about a cause, failure is part of the process. We wouldn’t have Disney World, iPhones, or dozens of other success stories today if those behind them didn’t fail multiple times. They only eventually reached the top because they were willing to get up, learn from their failures, and move on.
If you want to overcome failures, take a look at what went wrong. From there, you can develop a strategy to start up a campaign again and get your team motivated, using some of the following strategies:
- Establish a schedule
- Allocate sufficient resources
- Provide more training
- Identify different roles for those involved
- Motivate your team
Failure should be viewed as an opportunity for growth. It puts you in the unique position to learn what worked, what didn’t, and where you can improve. Is it hard to put so much time and effort into something and fall short? Yes. But, if you’re truly passionate about what you’re campaigning for, you’ll overcome the challenge and keep moving forward.
With the right mindset and willingness to work, you can overcome almost any challenge crowdfunding might throw at you. Keep these common challenges and solutions in mind as you start a new campaign, and you’ll be more likely to reach your financial goal to get your project off the ground.
Charlie Fletcher is a freelance writer from the lovely “city of trees”- Boise, Idaho. Her love of writing pairs with her passion for social activism and search for the truth. When not writing she is a part time wedding planner and spending time with her nephews. And yes, she does love all kinds of potatoes!