3 Crowdfunding Mistakes to avoid at all cost
Crowdfunding is by far one of the largest routes to market for startups right now. It helps to build brand awareness and can provide you with a crowd of ambassadors for your product or service.
There are several common mistakes that seem to cause the crowdfunding campaigns to fail so we’ve decided to list them in today’s blog to help you avoid them.
Build a network of supporters who recognise your brand
One of the most common reasons for crowdfunding campaigns to fail is a lack of meaningful brand identity. If your company looks like every other in your field and does not stand out in any way, potential investors will forget who you are and what you do the minute they click off your campaign page. A great way to create a memorable brand identity in today’s connected world is by using unique images which visually communicate who you are and what you do. It is important to use the same visuals across all your online brand that is: your website, your social media profiles, your email newsletters and your PR campaigns. That way, once your campaign will go live people will find it familiar and will be more likely to engage with it and invest.
Understand your target audience
Ever wondered why a theoretically great campaign failed to raise funding online? This most definitely had to do with the lack of understanding of their target audience and what this target audience is looking for in a product or service. If your vision and your message fails to strike a cord in the hearts of your target audience and they can’t relate to it or you don’t connect with them on a deep emotional level through your visual messages, they will be very unlikely to invest. People like to support causes that are close to their hearts so knowing what it is is that your audience cares about is crucial in being able to succeed with your campaign. An easy way to find out how your product or service could solve problems of your target audience is simply by sending a questionnaire and asking them directly. This way, they will feel that you care about them, you think about solving their problems and will be very happy to give you a much needed insight that will help you develop a product or service that they will love.
If your potential backers and your target audience don’t trust you, there isn’t a pitch in the world – no matter how well written, rehearsed or flashy – that will convince them to invest in your company. Being able to build trust within your target audience and within your potential investor’s circle is the main factor that will impact the success of your campaign. So how do you build trust online? First and foremost, show that people behind your project are credible, passionate and committed. You can do this by including your teams’ short bios on your campaign page and also by incorporating a few words from each of them in your video pitch. Another great way of building trust in your company is having an established and well known influencer in your sector endorsing your project. This will not only build trust but might also help to raise awareness and attract more potential investors. But remember that the influencer endorsement should be genuine and synchronous with your brand so approach somebody who you think will have a genuine interest for your idea.
Here at IdeaSquares we are passionate about helping startups succeed at crowdfunding. We have developed our own proven formula that helps to build the know, like and trust factor online. We’ve used it to successfully raise investments for ourselves and we’ve now made it accessible to anyone who needs help crowdfunding. If you would like to know how we can help your startup reach your crowdfunding goal, give us a call.