What to do if your CrowdFunding Campaign Fails

CFB News Wire, Hopefully you won’t need this chapter. But it’s better to pack an umbrella and miss the rain than forget and get drenched, so we’re including it nevertheless. After all, the majority of crowdfunding campaigns do fail. It’s not the ideal outcome after so much hard work, but like any other negative in the business world, there is much to learn and grow upon from this experience. So what should you do now?
Step One: Take a deep breath and accept it.
Before you move forward, it’s critical to acknowledge that one thing or another wasn’t quite right. Still, your campaign most likely wasn’t a complete failure, so your next step is to to review what you got right and what you could’ve done better.

Rob Wu, CEO and Founder of CauseVox, emphasizes first looking at the positives of a failed campaign. Ask yourself:
Which strategies worked?
Which tactics paid off?
Why did donors contribute?
What are you proud of? [1]
Understanding what you did well will give you an idea of where to build upon when you relaunch as well as help the whole team to stay motivated. Too often, failure has the possibility of ending the original vision entirely, which shouldn’t be the case. The key is to learn and build rather than be broken by failure.
Once your head is clear and you’ve acknowledged what you did right, it’s time analyze what you and your team did poorly. While it won’t be fun, this process shouldn’t be as overwhelming because you now understand that it wasn’t all for nothing. Address the following questions with as much brutal honesty as possible.
Big Picture Concerns
Did our product or service really fulfill a need?
Did we focus too much on certain aspects? Are we sure these were as important as we’d assumed?
Did we pursue the wrong channels?
What slowed down the campaign? [1]
Questions 1 through 4 are for you and your team. Question 1 is probably the most important because all the marketing in the world can’t sell a product no one wants. Take a long hard look at the product itself before moving on. If you spent a lot of time and money trying to attract backers via Twitter, but you find that Facebook was a more valuable source of traffic, then that’s an easy fix the second go around. If you think you marketed your campaign to the wrong demographic, then look at the backers you did get and try to find more people like that when you relaunch.
Little Picture Concerns:
Did we set the funding goal too high?
Did our product page/video send the wrong message?
Did we launch on the wrong platform?
Little picture concerns are for your inner circle, people whose honest opinions you trust. Tell them that now is not the time to spare your feelings. Ask as many people as possible how they perceived your product message, your story, your video, your rewards tiers, and anything else about your campaign. From product page copy to video editing, leave no stone unturned.
Step 1: Improve upon previous campaign.
Once you’ve dusted yourself off and learned from your mistakes, your motto is remove it or improve it. Likewise, if you did something well—for example, if a particular blogger resulted in excellent traffic or your promotional video went viral on Facebook—play it up more than ever. Emphasize what went right and fix what went awry. The advantage here that you didn’t have before is that you know what works and what doesn’t.
Step 2: Stay connected with backers.
Regardless of whether or not the first launch was successful, remain in touch with those who did back you. If they believed in your campaign before, they’ll most likely care about your campaign the second go around.
Step 3: [For Kickstarter campaigns] Be prepared before failure.
If you choose to use Kickstarter as your platform, your campaign page will remain up after your campaign ends. You can go back to the original product page and post updates and a URL for the relaunch, thus making sure that no backers were lost.
Crowdcrux writer Salvador Briggman writes, “if you know your campaign will fail then before it closes add a link and use a 301 redirect to link to the relaunch page once it’s online” [2]. Briggman also recommends updating the old page with a new promotional video a few days before the relaunch, so your original backers can get your new campaign off on the right foot.
We hope you don’t need this chapter, but if you do then know this: it’s not the end of the world. It sucks to put a lot of effort into something and have it not work out, but plenty of unfunded campaigns go on to find success. The most important thing you can do is learn from your mistakes and relaunch your campaign better than ever before.



This RSS feed URL is deprecated, please update. New URLs can be found in the footers at https://news.google.com/news [...]

TechCrunchFormer Gawker employees are crowdfunding an effort to buy Gawker.comTechCrunchWhile Univision acquired most of Gawker Media's sites last year (and renamed them as the Gizmodo Media Group), the deal didn't include Gawker itself. In fact, BuzzFeed reported last month [...]

CurbedHistoric French chateau now has 13000 owners from crowdfundingCurbedThe Chateau de la Mothe-Chandeniers has had many owners since its construction in the 13th century. Now more so than ever. Over 13,000 strangers have recently banded together to save the fairytale home—which fea [...]

Crowdfunding For French CastlesNPRYou too can own a French chateau, in part, anyway. Romain Delaume, CEO of Dartagnans, tells NPR's Scott Simon about a crowdfunding effort underway to preserve La Mothe-Chandeniers. SCOTT SIMON, HOST: What if I told you that for about $60, you cou [...]

Comics BeatCrowdfunding Watch: Women to the RescueComics BeatAlas, another Monday begins. We're all here at our computers, staring at the screen until our eyeballs turn into raisins. I'll try to keep this week's crowdfunding round-up short and sweet. This week we'r [...]

ForbesCrowdfunding Do's And Dont's From iFundWomen's Karen CahnForbesDuring our conversation, she was transparent in sharing that her first software company, VProud, failed because she “did everything backwards” and spent too much time trying to perfect the product. “Pe [...]

Small Business TrendsButcher Shop Startup Discovers Crowdfunding Magic Via IntuitSmall Business TrendsWhat startup entrepreneur hasn't dreamed of borrowing Cinderella's fairy godmother or Aladdin's genie to make their every wish come true? While they weren't necess [...]

Boing BoingHelping kids play with danger: crowdfunding a log-splitter, designed for childrenBoing BoingRisky play is good for kids: it lets them test their boundaries in an exhilarating, vivid way -- and it's been all but entirely engineered out of contemporary child-rearing. Tha [...]

VentureBeat10 reasons the $1 million crowdfunding cap should be $20 millionVentureBeatIt's been18 months since the final rule of the JOBS Act went into effect, allowing equity crowdfunding. In those 18 months, everything proponents of the rule said would happen (and none of what [...]

Devon LiveNew crowdfunding appeal to replant devastated Devon woodlandDevon LiveA crowdfunding campaign has been launched to raise the thousands of pounds needed to replant a much loved area of Devon woodland devastated by disease. Earlier this year, under direction of the Forestry Co [...]

CFB Finance


  • 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 |