Critical Steps for CrowdFunding Success

CrowdFunding Beat Media,   

By Matthew Beck, 

Start Up Consultant, Business Strategist , Author & Entrepreneur

What is Crowd funding ?

The concept of crowd-funding is easy.All you have to do is fund your project by going to the internet and asking large numbers of people for a small contribution.

It seems all you have to do is to register with a platform like Kickstarter or Indiegogo, fill in some simple screens, upload your video and wait for the cash to come in. The sad truth is 60 % of all campaigns do not reach their goal and are not funded.

Planning

In order to be successful, at least 6 months preparing for the launch is needed. Networks need to be developed with potential financiers who are enthusiastic about your project while being in a position to quickly back and accelerate the project throughout the crowd-funding campaign.

Backers and potential contributors will need meaningful updates to keep enthusiasm high.We recommend writing blogs ahead of time to have on hand, which can be inserted at low points in the campaign to boost morale, support and funding.

The Product

Stakeholders want to back a project that is going to be successful. Everyone likes a winner. When high numbers of backers pledge large dollar amounts sponsors are reassured the project will be funded.

The product must be of the highest quality. Benefits need to be clear. The audience has to be carefully chosen and social media has to be inspired in order to maximize the chances of success.

Perks

After careful analysis of the product and building a network of enthusiastic supporters perks should be offered to inspire and convince the audience to donate. In the film industry a perk may be that actors drink Coke or Pepsi if funds are provided for this right or the lead actor wears brand name clothing from a donor in exchange for support.

Other common perks include the naming rights or memorializing an important friend, supporter, backer, investor or family member. Corporations seeking brand awareness many benefit from naming rights and are an important source for funding.

Main Reasons For Lack of Success

Product

  • There is no market for the goods and services on offer.The product has no demand.

  • Ignorance of regulatory environment. Issues of safety or legality.A legal threat is probable. Product has no longevity.

  • Design issues related to under resourced and over engineered.Issues of quality predominate.

  • A prototype was never created.Form and function are not gauged in conjunction with appeal.

  • The new product is commonplace with little added benefits for the wider population.

  • The features and benefits are not clearly explained in an engaging way that holds the listener’s attention.

  • The item can be readily found in the big box stores under competing labels.

  • Competition is fierce, established and strongly branded.

Discussion :

Success depends upon introducing new products that resonate with the target market using clear simple language in an engaging manner.The regulatory environment cannot be understated or ignored.

The creation of a successful prototype that is well designed will go along way to attract backers in the initial stages of the campaign.

Positive interactions with the new brand spurn new brand ambassadors to enlist supporters.

Nullify competition with niche marketing.

Price:

  • The price is too high and crushes interest upon review.

  • Lack of branding has not established a perceived value for the price offered.

  • Roll out is flawed.Pricing strategy has not covered costs.

  • Pricing strategy has derailed distribution.

  • Quality is an issue and the price is not competitive for the items on offer.

Discussion:

Pricing strategy has to be carefully thought out with keen attention to the competitive environment the business operates in. Price must be high enough to produce adequate margins to generate a profit before taxes.

Promotion

  • Failed to network and assemble a crowd.
  • Project is not suitable for crowd funding.Promotion is amplifying a doomed product.
  • Goal was too high.A lack of backers is obvious and interest is severely waning.

  • Bad landing page.Titles are not eye-catching.

  • Boring pitch.A dry business format should be avoided.

  • Lack of creativity.Marketing efforts resemble a bootstrap campaign with no budget.

  • Lack of innovation,effort and dedication to the cause.

  • Audience is misunderstood.Demographics are not defined.Medium is poor for the target market.

  • Lack of excitement.Not enough supporters are on board with the campaign.

  • Backers are not engaged.A lack of updates is the hampering engagement.

  • Can’t set yourself apart from the others.

  • Perks are token and meaningless. The rewards are insignificant and not tangible,

  • A clear lack of planning is obvious.

    In conclusion there are many failure points . The worst of which is lack of planning, poor product development and lack of crowd building.

    Success depends upon careful research and a complete understanding of your target market.

Tags: , ,

HEADLINE NEWS

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

ForbesHow This Millennial Built A 7-Figure Business Using Equity CrowdfundingForbesWhen he asked them to help fund his company's crowdfunding campaign, they delivered—exceeding his initial goal fourfold and ranking it one of the fastest and most successfully funded companies on R [...]

WJLAHomeFundMe: Crowdfunding for a down payment | WJLAWJLABOISE, Idaho (KBOI) - You've likely heard of GoFundMe, the crowdfunding website, but have you heard of HomeFundMe?It's a website aimed at raising money for the down payment on a home.There is no repayment! This is a t [...]

Final '68, crowdfunding campaign ends in just one weekPlanetmountainThe crowdfunding campaign for Final '68, the project that aims to document the exploratory phase of the Pietra del Finale between the years 1968 and 1975, will come to an end in seven days time. There are ju [...]

Digital News AsiaNewly licensed Singapore crowdfunding player kickstarts platformDigital News AsiaSINGAPORE start-up, FundTier, launched its crowdfunding platform officially after obtaining the Capital Market Services (CMS) licence in December 2017. Founded by five former bankers, Fun [...]

Crowdfunding site Beam provides job training for homeless 'in a dignified way'CTV NewsHe is among the first to benefit from a high-tech project to use the internet and crowdfunding to help the homeless. The founder is an entrepreneur by the name of Alex Stephany who created [...]

Oval Money surpasses £500000 crowdfunding target in 72 hoursFinextraOval Money's latest fundraising campaign was conducted on crowdfunding platform Crowdcube. The £500,000 target represented nine percent of the company's equity, but the overfunding is increasing the equity t [...]

Brewbound.comFull Circle Brewing Raises $800000 Via Equity Crowd FundingBrewbound.comFRESNO, Calif. – Full Circle Brewing Co., Fresno-based craft brewery, announces their progress of securing $800,000 of capital. They are more than three-fourths to their goal which is projected to inc [...]

Entrepreneur3 Crowdfunding Tips Every Company Forgets From a Brand That Raised $800000 and Got AcquiredEntrepreneurCrowdfunding takes a lot of planning, whether you're gearing up for a launch, a ship date or thinking about the next source of funding you'll pursue. But it [...]

Entrepreneur12 Key Strategies to a Successful Crowdfunding CampaignEntrepreneurI've Raised Close to $2 Million in Crowdfunding Campaigns -- Here Are My Secrets · Next Article. 12 Key Strategies to a Successful Crowdfunding Campaign. Image credit: Shutterstock · Aj Agrawal • Contr [...]

CFB Finance

Marketwired

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

Press Release

CrowdFund Beat Media

2018 Fintech World Conference & Workshop, Announcement:Game Changer” Fintech World Media, PR & Marketing Group Proudly Presents: lnkd.in/gqdCrTr

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 |