Thinking of launching a crowdfunding campaign? We’ve rounded up some of the most common hurdles crowdfunding creators face leading up to their big launch. Curious about to how to tackle these challenges? We’ve included our tips below, too.
Limited Advertising Dollars
As our expert Director of Paid Media loves to say, “you have to spend money to make money.” And she’s right.
Limited advertising dollars isn’t a new hurdle for creators, but it’s important to keep in mind that your ad budget and overall campaign “success” is relative. We’re not saying that you need hundreds of thousands of dollars to spend on advertising, but you should have an advertising plan and budget in place before you kick off any phase of your campaign.
For all of our six-figure and over campaigns, the majority of creators spent about 10-15% of their internal, “nice to hit” funding goal in advertising dollars. Typically, our team has found that around $5K for a solid pre-launch campaign will suffice. But, and this is important, keep in mind that this $5K is in addition to your live campaign budget.
Constant Meta and iOS updates haven’t made advertising easy either. There’s both creative and strategic aspects to paid advertising, so it’s important to make sure that you’re spending your budget wisely. Just because you have the money doesn’t necessarily mean you’ll see the return on your investment.
Short (or Rushed) Pre-launch Phase
You wouldn’t bake a cake without pre-heating the oven first, right? The pre-launch phase is such an important piece of your overall crowdfunding marketing strategy. It’s your way of “pre-heating” or generating interest for your big idea.
Many creators find time is not on their side when it comes to crowdfunding campaigns, especially if their product is seasonal. No matter what, don’t rush or skip the pre-launch process. Some of our most successful clients, like Mobile Pixels, have a large existing backer community but continue to run a pre-launch with us to hype up their new launches.
Historically, people who sign up via landing page during pre-launch are the most likely to convert into actual backers once your project is live, too. So, plan accordingly, capture high-quality images and videos, and build some hype around your upcoming launch.
Poor Product Positioning
Crowdfunding backers are very different from your typical ecommerce customers. Therefore, targeting and your overall marketing strategy will differ. One of the biggest hurdles we see is project creators being unable to properly position their product on their campaign page. This includes everything from the images, video, copy and pricing. What typically works or converts for a standard digital ad campaign may not work when you start advertising an upcoming crowdfunding launch.
We won’t continue to harp on the importance of pre-launch, but be sure to incorporate your initial data and findings in your campaign page. Is there ad copy that’s performing well? Try to incorporate those keywords in your title and/or subtitle. Did you (hopefully) test different price points during pre-launch? Consider those prices when drafting your reward strategy.
Remember, as the creator you’re the target audience, but you’re not the customer. Talk TO backers instead of AT them. How will this change their lives? Drop any technical jargon (save those for the FAQs and backer updates, if needed) and talk about your product like you’re talking to a friend.
Since the COVID-19 pandemic, project creators have endured unforeseen delays across the board. Whether it’s a manufacturing delay, product shortage or supply chain issue, project creators have had to remain transparent and agile.
Unforeseen delays are always a possibility, so we advise our clients to continue updating their community via regular backer updates and behind-the-scenes photos and videos to keep them abreast of where they’re at in terms of fulfillment.
Unrealistic Goals and Expectations
Perhaps the most common obstacle creators face is unrealistic goals and expectations. Remember, only 40% of campaigns are considered “successful” or fully funded on Kickstarter. Of those successfully funded campaigns, most only raise at or under $10K.
Everyone wants to raise $1M, but the reality is that those projects are few and far between. We always advise clients to provide us with their must-hit goal to produce their product and a “nice to hit” internal goal. This ensures everyone is on the same page and that we set realistic expectations.
We’re Here to Help
Crowdfunding is a great way to raise awareness and build a community around your big idea. These hurdles may seem daunting, but you don’t have to navigate your crowdfunding strategy alone. Let’s chat through your goals and see how we can work together to bring your next big idea to life!
Work With Us
Want to learn more about how we’d prepare your product for launch? Request a quote today.
Want To See This Advice In Action?
Check out our case studies and learn more about how we’ve achieved stellar results for our clients.