Kickstarter Mistakes

Here’s the mistake many people make – Kickstarter is not a place to grow your community. You should grow a community of people who believe in you and back your project long before the launch on Kickstarter. Don’t launch a project on Kickstarter without having done any groundwork or networking and just hope for it to succeed. It won’t! Create a professional website, build an e-mail list and get the support of the subscribers to your newsletters. That’s the way to grow your community.

Donation-based crowdfunding is easy to explain. Essentially, people donate money to a business or project without any expectation of an ownership. In return for their contribution, they receive some sort of a tangible reward. This is based on how much they donate. A small donation, for example, may get you a T-Shirt with the company’s logo or a bumper sticker.

A larger donation may get you a first edition product, an invitation to the product launch party or an all expenses paid vacation. In return for facilitating the exchange, crowdfunding platforms such as Kickstarter and Indiegogo take a small percentage of the cut – amounting to around 5% to 10%.Equity-based crowdfunding is different, and gives you a lot more power over the company, as it gives you a share or equity in the company, based on your contribution.

You get to own a small part of the company and quite possibly sell it later for a sizeable profit. So you can profit as an early investor if the company goes on to become something significant, or, on the flip side, be prepared to take a hit if the company fails to succeed.

DSC01201

Large Number of New Crowdfunding Platforms: The most important players in crowdfunding are getting even bigger, but this hasn’t stopped the entry of hundreds of new players into crowdfunding. Most of the new players in crowdfunding are young entrepreneurs who realize how hard it is for small business owners to raise funds from traditional sources and want to help out those who need capital to grow their business. We also expect a large number of crowdfunding platforms targeted at nonprofits to make their presence felt.

On Kickstarter, a video is the most important thing there is. It should be professionally produced and should be compelling, if not captivating. It should tell the story of your campaign, why you are in it and what your goals and objectives are. Your video should hook your potential backer and get them to read your campaign page. Make the video interesting; don’t bore your potential backers with a long video that never ends. Keep it short and sweet and take no more than 2 minutes to convey your message. Most people are too busy to spend more than a couple of minutes on a Kickstarter video.

The most successful Kickstarter campaigns are those that get the media on their side and are given a plenty of coverage by the press. Talk to bloggers and journalists about your project or product and try to convince them about covering your crowdfunding campaign.

Here’s the mistake many people make – Kickstarter is not a place to grow your community. You should grow a community of people who believe in you and back your project long before the launch on Kickstarter. Don’t launch a project on Kickstarter without having done any groundwork or networking and just hope for it to succeed. It won’t! Create a professional website, build an e-mail list and get the support of the subscribers to your newsletters. That’s the way to grow your community.