28 September 2017
5 Biggest Mistakes of Crowdfunding
So you have this fantastic idea, great prospects and you can see the products, project or venture appealing to the masses. Though the journey to the masses can be long hard and disappointing. Why is this? In many of our focus groups we ask this question and top of most people’s list. Money, funding, finance, cash whatever you want to call it, for the majority of us starting out money is the hardest thing to overcome. That’s were London Idea and crowdfunding can help. At London Idea we can give the cash injection your venture needs to transform it into the idea you imagined. Through research and speaking to both successful and unsuccessful campaigners London Idea have gathered together the top 5 crowdfunding mistakes.
Where is this ‘crowd’?
You bring the crowd, it is not the case that you put your campaign on London Idea or any other crowdfunding site and a crowd just miraculously appears. Yes there will be some donations from the platforms users, to support this at London Idea, we are able to split campaigns into boroughs, this allows donators who have a particular interest in a specific borough are sign posted directly to your campaign.
However to make your campaign have the highest chance of success you need to create your own crowd, building a community of supporters tapping into all your social media streams and contact list is the best place to start. At London Idea we also highly recommend coinciding your campaign with holding a number of events this gives supporters chance to engage and also attract other potential backers. The bigger the crowd the more successful you will be!
Pre-launch you need to have a clear plan of action, at London Idea you have a maximum of 8 weeks that your campaign is live. It sounds like a long time however it will fly by. So utilise your time prior to launching to prepare. You want to create a sense of anticipation. Maybe you can release sneak previews of the rewards you will offer, create a taster video of what you are doing, leave people wondering and wanting more. When it comes to launch you already have an audience.
London Idea offer a range of packages that can assist you on your prep. We can help you build a social media strategy, get all those followers translated into backers. Social media is a fantastic tool and done correctly with the help of London Ideas expertise we can help you convert likes, follows and engagement into cash for your project. Utilising social media is also a great way to keep your followers updated throughout your crowdfunding journey this leads me to the next point,
Update, update, update, people want to hear everything. Whether it’s the first delivery of stock or your first sale, or even if it is not the greatest news, maybe an update on the challenges you are facing, maybe update on that trademark that is causing you a headache. People love stories and love to feel apart of the journey. If you don’t keep your backers updated, they will only assume that you are not interested in creating a crowd, that you are just interested in the money. Crowdfunding is unique as the backers on your first campaign can become your loyal customers and also future investors. So keep them happy and keep them updated! Utilise social media, utilise London Ideas update feature on your profile and let your crowd know what you are doing. Keeping updates also lets the London Idea community assist you if you are facing challenges, maybe another user has been through or knows the solution. You have had a delivery of stock but now looking for the best storage solution in London.
That’s no reward.
London Idea offers two types of crowdfunding options, reward based or donation. Donation based crowdfunding is where people will back the idea or project with no reward. This type of crowdfunding is great for charity based or community projects. For other projects London Idea can utilise a reward based crowdfunding. While you are creating your campaign, you can offer rewards for carious amounts. Reward based crowdfunding is great to get your product out there and also a great way to gather user feedback. Though one of the mistakes London Idea has sourced is that the rewards that some campaigns offer are not appealing. Backers want to get something that they cannot purchase, maybe you offer a signed edition of the first prototype or a meet and great with yourself. London Idea loves creativity and ingenuity we cannot wait to see the rewards you are going to be offering. Also don’t forget its nearly Christmas, rewards form crowdfunding make great unique gifts.
London Idea wants you to succeed in meeting your goals, but you have to be realistic. Some campaigns aim too high or too low, in there goal amount. Both have a detrimental effect. Prior to putting your campaign on London Idea research exactly what cash injection you need, if your struggling, we are only an email away from helping you firstname.lastname@example.org or contact us on Facebook @londonidea or Twitter @Londonidea. We can help you work out the right amount you require, also don’t forget that the rewards you offer will have to be budgeted for so don’t make any promises you cannot fulfil.
If you require any further advice on crowdfunding in general or crowdfunding on London Idea please get in touch. We are passionate about your success and London Idea will help you succeed!