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Why Your Crowdfunding Campaign Failed? (Cracking the Code)

(Image Credit Google)
Image credit : SGX Group Via YouTube One major advantage of crowdfunding campaigns is that it hardly carries any financial risks. On the other hand, the average success rate of crowdfunding campaigns is 22.4% which is very low. One interesting thing about crowdfunding is that the campaigns that raise 30% of their goal within the first week have higher probability to succeed. Crowdfunding campaigns that include a video are inclined to secure 105% of the funding, surpassing those campaigns without a video. However, crowdfunding campaigns can fail for a variety of reasons, often stemming from a combination of factors.  Here are some common reasons why crowdfunding campaigns might not succeed: [caption id="attachment_190933" align="aligncenter" width="750"]crowdfunding- Image credit : ThriveMyWay[/caption]

Not setting a realistic funding goal

Setting a highly ambitious goal can deter your potential backers. Some campaigners really need a hefty sum of money to realize their creative idea. If the target amount seems unattainable or the creators fail to provide a clear plan for how they'll use the funds, backers might hesitate to contribute.  To avoid this situation, you can keep the 25-30% of your funding goal ready for the campaign when it is launched. Before launching, you should have a clear cut plan and assessment of the money you can raise. Exceeding the key financial hurdles within a week of launching your project is a good sign for your campaign.

Lack of Proper Planning

Proper planning is the key to make any crowdfunding campaign successful. Successful campaigns require substantial groundwork before launch. This includes building a supportive community, establishing a social media presence, and generating excitement before the campaign even begins. Once the campaign starts, you will find that the time flies like an arrow. So, be well-prepared before launching your campaign. Keep all your video content, images and copywriting content for your campaign page ready before the campaign rolls out. Make a detailed note of events related to your campaign like timing of the launch, campaign update, marketing, ads, etc. Proper planning involves creating a detailed budget that accounts for all expenses, from production and shipping costs to marketing and platform fees. This helps you determine the funding goal accurately and ensures you're not left with unexpected financial shortfalls. [caption id="attachment_190935" align="aligncenter" width="1000"]crowdfunding Image credit : FortuneBuilders[/caption]

Not having a unique product

Your campaign revolves around the product and it plays an important role in attracting funds. If the product is innovative, it resonates with backers' ideas, and it genuinely resolves people’s problems, then you are likely to exceed expectations of the backers and this way the project may leave a solid impact in the initial days of its launch. Ensure that your product is totally new and it is not a replica or repetition of any product that already exists. If the product is innovative, it’s your duty to communicate about your idea in an impactful way. So, introducing a meaningful product and spreading a word about it can help you win the crowdfunding battle.

Weak marketing and promotion

[caption id="attachment_190993" align="alignright" width="1200"]Weal Marketing Image: hubspot[/caption] Weak marketing and promotion can have a significant negative impact on crowdfunding campaigns, leading to low visibility, lack of engagement, and ultimately, campaign failure.  Weak marketing efforts result in a lack of exposure to your campaign. Without reaching a wide audience, you miss out on potential backers who might have been interested in your project. Also, effective marketing generates excitement and engagement. Weak promotion can lead to minimal interaction with your campaign page, reducing the chances of converting visitors into backers. Backers want to support projects they trust. Shaky or lousy marketing can make your campaign seem less credible, leading potential backers to question the authenticity of your project.

Poor Presentation

A picture is worth a thousand words and so, a project creator must be a good storyteller. Your representation of the project must be concise and well-planned. The campaign page is often the first impression potential backers have of the project. If it's poorly designed, lacks compelling visuals, or has unclear information, it can discourage backers from contributing. In addition, an ineffective storytelling campaign can lead to losing connectivity with the contributors. It can undermine your ability to convey your project's narrative effectively, reducing the emotional connection with potential backers. To avoid these negative impacts, invest time and effort in crafting a well-designed, visually appealing, and informative campaign page. Use high-quality images, clear and concise text, and engaging storytelling to present your project in the best possible light. Remember that backers want to feel confident in the projects they support, and a professionally presented campaign helps build that confidence.

By Awanish Kumar

I keep abreast of the latest technological developments to bring you unfiltered information about gadgets.


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