Kickstarter: Mistakes You Can Avoid in Reaching Your Goal
Crowdfunding is one of the ways for a startup to raise a necessary budget to turn your ideas into action. Such platforms as Kickstarter and Indiegogo help to collect different sums of money, from thousands to millions of dollars. In reality, most Kickstarter and Indiegogo campaigns fail for various reasons.
We sincerely support the growth of the electronics industry, including that one, through the creation of new progressive projects. So we've collected a list of the main reasons why crowdfunding campaigns fail. Let's see!
Insufficient preparation of the campaign before its launch
Many people know that the first 24 hours on the platform are crucial in any campaign. That means that if you hadn't worked through all the nuances before your project was launched, we could hardly expect the necessary success on the first day. The audience you want to attract should know your intention in advance –– from other platforms and blogs. Don't forget to save contacts from potential stakeholders. Otherwise, they won't even discover your project.
Your project is not innovative enough
People on crowdfunding platforms pay for the opportunity to get the product they need in the future. If such a product already exists, they do not need to invest and wait months or years until your project completion. You should suggest something that your competitors don't have before you open the fundraising. Don't forget to tell them why your project is unique –– it will help increase funding by 200%. If you convince investors of its undeniable value, this figure can rise to 1200%.
Try to evaluate the resources required for the project in advance rationally. Firstly, think about the fact that developing a project is much better than being left without it at all. Specify the amount that is needed to start the project. After that, you can find more supporters and achieve more success. Besides, you should not declare an unrealistic deadline for the project launch. Sponsors should not doubt your credibility. Otherwise, they will simply pass your project aside. There are many ways to rationalize the timing of development, use them to be honest with yourself and your investors.
You should pay attention to preparing your offer and bonuses that will be of interest to backers. The people who finance your project want to know what and when they will receive a return. Be creative and honest in your promises. There is not a single project in the history of Kickstarter that has failed after a big success and people want to know that they will not be left empty-handed in this case.
Image source: Coolest Cooler
You may have heard a history of a company that raised more than $13 million in 2014 to create a high-tech fridge with a built-in blender – Coolest Cooler. This success is still the second in the history of Kickstarter, after the Pebble Time project. Five years later, at the end of 2019, CEO Ryan Grepper announced the termination of the company due to a 25 percent increase in tariffs on Chinese imports.
As a result, a third of the sponsors stuck without the promised reward. Now the company has to pay $20 to anyone who didn't get their cooler. Given that the company is in a difficult situation, they do not have the opportunity to fulfill this condition, as appropriate.
We hope that our advice will help your project to replenish the moneybox of successful stories on the crowdfunding platform. In any case, such platforms allow you to meet like-minded people, get an honest opinion or advice.
We are always happy to help you achieve your success, so don't hesitate to ask your questions by the link below.