30 Crowdfunding no-nos

Let us look at some of the common mistakes in crowd funding campaigns. The key lesson – What works for you may not work for another and vice versa.

  1. Doing it when you dont need it – Be sure if you need the funds.
  2. Going solo – Go for experienced partners who can help you meet your goals.
  3. Thinking it will be easy – It is not; there other projects vying for the same funds.
  4. Crowdfunding isn’t crowd – Funds cannot be got from any crowd but from like- minded communities.
  5. Wrong tools / models – One size doesn’t fit all; need to personalise strategies and choose the right tools and models.
  6. No goal – Having no goals or unrealistic goals is bad.
  7. No research- Not checking earlier campaigns can prove costly.
  8. No pre marketing campaigns – Before you start you need to create the right buzz.
  9. Not addressing backer concerns – Issues of backers need to be addressed
  10. Ineffective headlines – Communication needs to create Awareness and result in the desired Action.
  11. Choosing wrong platforms – It’s important to know where/ who to speak with.
  12. Quality of images/videos – These aren’t unimportant but help build project image; same for language and grammar.
  13. Descriptions lacking proper structure – The writing should be structured and easy.
  14. Incentives – Having none or too many incentives for the contributors are bad; too many of them is also not advisable.
  15. Not taking proper social media support – Its important to get yourself ‘known’ through usage of social media.
  16. No initial capital – Funding takes time; make sure you have sufficient to tide over the initial period.
  17. No continued promotions – The pilot doesn’t switch off the engine once airborne; similarly, promotions need to continue till end.
  18. Communication – Investors and partners are key to success and need to be updated on the progress.
  19. Digital marketing channels – Digital marketing to be used effectively.
  20. Not taking feedback – taking feedback and doing course corrections are important.
  21.  Low initial traction – Initial traction key to creating a buzz around the project.
  22. Not preparing for all scenarios – Hope for the best but be ready for contingencies.
  23.  High costs of production – Keep costs low.
  24. Over promising – Promise your investors what you feel is achievable.
  25.  Relying on communities – One needs to spread the net and not rely just on communities.
  26. Organic social media – Traditional social media isn’t enough and needs to be leveraged creatively.
  27. Not taking campaign support – Friends and family help is important especially during the first 48 hours of commencement of the campaign to build traction.  
  28. Not calculating margins – Before the campaign, margins need to be calculated for cost estimations. 
  29.  Not keeping wiggle room – Shipping dates are unpredictable, so make sure one has time.
  30. Rushing it – Proper planning is required and there is no point in rushing the same.

SYNE develops personalized strategies for project based on goals and needs and this helps avoid the mistakes in crowdfunding. This makes SYNE an ideal partner with a secure payment platform and worldwide reach.

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