Crowdfunding: 3 Things You Should NEVER do!

crowdfundbuzz

By Matt Cooke, Founder/CEO of Crowd Fund Buzz

1. Don’t set a monetary goal higher than you actually need

People who are new to crowdfunding often make the mistake of setting a monetary goal higher than what they actually need. Frequent scenario: Crowdfunder needs $50,000, but figures an extra $25,000 would be nice, too.

Don’t do this. Having a high goal can cause your project to get off to a slow start. It can also cause potential backers to feel you have an unrealistic goal.

This mistake is made more often on sites like Indiegogo where the crowdfunder receives all of the funds raised versus sites like Kickstarter, which are “all of nothing” funding models.

Solution: Set realistic goals and only ask for what you need.

2. Don’t rely only on friends and family for funding

Most crowdfunders are surprised by how little financial backing they get from friends and family. They may get plenty of support on social media and verbal commitments but no real funding. Common refrain seen on Facebook: “Great idea, man, but I’m broke right now!” This leaves the crowdfunder in a terrible position because they frequently don’t realize that they are behind in their goals until it’s too late and the campaign is nearly over.

Solution: Before you launch, have a dedicated and realistic way to extend your circle outside of your family and friends to attract new people to your project. There are many sites online to help you achieve a broader reach.

3. Don’t launch your campaign without a plan

As a rule, crowdfunding campaigns do not usually go to plan. You might hit your goal on the first day or you might be twenty days in and have only raised ten percent of your goal. You have to have a plan for both scenarios. Having a realistic plan ahead of time will help you stay on top of your campaign, no matter which way it goes.

Solution: Take the time to create a business plan specifically for crowdfunding and stick to it. Again, there are many sites online to help shape a sensible crowdfunding platform.

crowdfundbuzz_homepage

Matt is our Founder and CEO. He is responsible for day to day operations as well as press outreach for our clients. Matt also stays on top of changing trends in crowdfunding.

Matt is responsible for day to day operations as well as press outreach for our clients. Matt also stays on top of changing trends in crowdfunding.

[CFB Contributor]
[Matt Cooke CEO/Founder of CrowdFundBuzz]

Tags: , , , , , , , ,

HEADLINE NEWS

ForbesHow One Startup Raised 10 Times Its Original Crowdfunding GoalForbesRunning a successful crowdfunding campaign isn't easy. The odds are heavily stacked against you, as very few end up succeeding. "Statistically, up to 89% of campaigns fail. Kickstarter has the highest [...]

ForbesThe Ultimate Pre-Launch Crowdfunding ChecklistForbesCrowdfunding is not limited to the platform where you launch your campaign. Instead, it has become a valuable way to transform your idea into a mainstream business. In order to head in that direction, you must execute a number [...]

Eater LondonFat Macy's Launch Crowdfunding Campaign to Open Restaurant in PeckhamEater LondonFat Macy's — a food social enterprise which aims to train young Londoners living in temporary housing — have launched a crowdfunding campaign. Their aim is to raise £55,141 to fund a [...]

Realnoe vremyaEveryone pools: Elvira Nabiullina to look closer at crowdfundingRealnoe vremyaThe Central Bank has seriously started fighting against crowdfunding platforms. The regulator told the gradual imposition of control of the sector won't begin earlier than in 2018. But mar [...]

Devon LiveCrowdfunding campaign launched to save adopted Romanian puppy who needs £8000 for vital surgery to save its lifeDevon LiveSam has started a crowd-funding campaign to try to help meet the £8000 cost of the surgery. It's a tall order, but every little helps. Sam had been [...]

U.S. News & World ReportNo Cash for Hate, Say Mainstream Crowdfunding FirmsU.S. News & World ReportThe block on mainstream crowdfunding is just the latest blow to far-right activists operating online. In the last 24 hours, neo-Nazi website the Daily Stormer had its domain regi [...]

The AustralianIgniteme heats up crowdfundingThe Australian“The only other comparable film that raised money through crowdfunding would be Crocodile Dundee, but not all funding came from the crowd.” Mr Morello said the idea behind the platform was relatively simple — giving new and bud [...]

UKTN8 simple steps for a successful equity crowdfunding campaignUKTNTom Horbye, senior campaign development associate at Seedrs, shares his top tips for a successful equity crowdfunding campaign. Here are eight easy-to-follow tips to help you devise and launch a successful equity crow [...]

LivemintFinding the right balance on crowdfundingLivemintSecurities market regulator Sebi (Securities and Exchange Board of India) has been trying to get a handle on digital platform-based crowdfunding since at least 2014, when it issued a cautiously positive consultation paper. It fl [...]

Crain's Cleveland Business'Smaller' gifts can go long way for Clinic's crowdfunding platformCrain's Cleveland BusinessFor an institution accustomed to securing multimillion-dollar donations, Cleveland Clinic's latest fundraising effort has some relatively [...]

CFB Finance

Marketwired

  • Crowdfunding
  • Crowdfund
  • Peer to Peer Lending
  • FinTech
  • Reg A+
  • Reg CF
  • Crowdfunding USA

Press Release

Live Crowdfunding .tv

What's Next Step in Regulation A+ JOBS ACTS Title IIII :L Interview : Steve Cinelli with Brian Korn Securities and Crowdfunding/Peer-to-Peer Lending Lawyer, Watch more video library | Conference | Interview | Campaign Showcase | Research | Education |