3 Potential Pitfalls For A Crowdfunding Project

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Crowdfunding has been a shining beacon of hope for startups and other individuals in need of generous financial donors. They could be on the verge of launching a revolutionary product that can help a lot of people or they are suffering from a rare medical condition and is in dire need of financial assistance. There are even established companies trying out social funding to connect more with their consumers.

But for the most part, crowdfunding has been used by startups to build and solicit the capital they need to launch their idea. From their need to purchase expensive equipment to gathering materials they need or even to find a way to market their invention – crowdfunding allows other people to chip in and share a few dollars for the project.

All these seems very exciting but as you go ahead and dive into the world of crowdfunding, you will soon find out that it still requires a lot of hard work and not just pressing buttons to launch a campaign. One way to better handle a project is to have an idea where most have failed and come shortly. There are a lot of success stories when it comes to crowdfunding but there are campaigns that were not able to reach their target.

Crowdfunding pitfalls

If you are set to launch and manage your own crowdfunding project, here are a few things you might want to keep in mind. These are just some of the problem areas you need to be aware of keep away from.

  • Lack of trust with the platform. One of the first people you need to convince about your project would be the crowdfunding platform you are using to get your campaign out to people. You need to let them know that you are not just a fly-by-night operation and that you would follow through on your commitments. This is important because you are essentially using their space to reach out to your potential backers. 
  • Lack of project information. You also need to make sure that you are able to put in all pertinent details about the project to help readers understand it better. The more they understand it, the higher your chances of connecting with them and getting their nod on your request. 
  • Lack of publicity. You don’t simply rely on the platform to get your message out. You need to do some heavy social lifting yourself for people to know about your campaign. Utilize social media and even the press to get some publicity going for you. Ask your contacts to spread the word as well to increase your network and connect with more people. Do not be a passive manager and wait for people to come. 
  • Lack of professionalism. You need to show the platform you are using, your suppliers, your team and most especially your investors that you are not just playing around with the campaign. Prove that you run a tight ship and that will reinforce their belief in you and your project.

 

 

This article is written by the Crowdfunders Editorial Team. In Asia, Crowdfunders.Asia is a leading portal on providing news related to crowdfunding, start-up, property and business. It is operated by CoAssets.com. CoAssets is South East Asia’s first listed and largest real estate crowdfunding platform. If you have any Crowdfunding news or stories to share, please email [email protected]

 

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