Rise of the Rest Roundtable Part 1: Stories and Strategies from 5 Breakthrough Tech Entrepreneurs
Young Entrepreneur Council (YEC) is an invite-only organization comprised of the world’s most promising young entrepreneurs. In partnership with Citi, YEC recently launched BusinessCollective, a free virtual mentorship program that helps millions of entrepreneurs start and grow businesses.
1. There’s Not Enough Buzz
When it comes to a crowdfunding campaign, you have to hustle to create the buzz around it, convincing others that people are really “hot” on your idea. Once investors start rolling in, the momentum can take over, although you still need to continually leverage social platforms, influencers and all types of channels to remind people of your campaign. Talk about it continually.
2. There’s Not Enough Incentive
No matter what your crowdfunding campaign is focused on, those contributing need some kind of incentive to give their money — product and/or service. They need to know that they will get something out of the deal.
3. You’re Not Understanding Your Target Audience
Often companies feel they have a great idea but fail to test it out before creating a crowdfunding campaign. It is important to first put in the research and understand who your target audience is. Create value, educate people and be sure your product or service is something people are really interested in, and market to them in the right way.
4. You Have No Proof of Concept
Not having a concise pitch can kill a campaign. So can a poor proof of concept. Before you ask for money, make sure you can demonstrate the value of your creation; not just talk. Even better, demonstrate its viability in the marketplace by drumming up demand and presenting evidence of as a part of the pitch.
5. You’re Not Showing Your Audience How They’re Connected
Beyond the list of takeaways for certain contribution amounts, most campaigns don’t really connect with their audience of potential investors because they never say what the product or service will do for them. It may give a list of benefits, but there is no connection to an issue or problem the audience has or relates to. This connection would get them to invest or attract more people.
6. You’re Using Low Quality Video
In most instances, I think it’s OK to pull out your iPhone, shoot some video, and post it to your Facebook page or YouTube channel. However, when it comes to launches a successful crowdfunding campaign, I don’t believe you should skimp on video production. In fact, I think you should invest several hundred dollars in making sure your video is shot professionally edited and polished.
7. You Fail to Build Trust
Most crowdfunding projects fail to deliver to their customers. Over two years later, our campaign is still one of very few crowdfunded hardware projects that fulfilled its orders. Visitors are aware of this, and crowdfunding projects fail because the campaign doesn’t build enough trust. Be trustworthy in your video, be realistic with your claims, and make a quality campaign page with good images.
8. Your Video Doesn’t Tell a Story
Stories are the best way to sell anything and the only way you can effectively do that on crowdfunding campaigns is to have the right video to deliver the message effectively. Your video has to connect with the audience and has to feel genuine. If it doesn’t, then it will be difficult to get anyone to follow you or buy into your story.
9. Your Product Doesn’t Solve a Problem
Let’s start with the No. 1 reason that crowdfunding campaigns succeed — your product solves a problem. If your product doesn’t solve a problem, you likely won’t succeed. Before you post your product, test it out on people who will give you honest feedback. If you’re leveraging crowdfunding to build a prototype, make sure to outline the product as much as possible and seek as much feedback as possible.
10. You Set the Wrong Goal Amount
In crowdfunding campaigns, image is everything. If, within the first few days, your campaign is not able to achieve its funding goal, reporters coming to your page won’t write about it because it will appear like a doomed campaign, and backers won’t back you for the same reason. That’s why it’s better to set a conservative goal that you can actually succeed in raising. Once achieved, the sky is the limit.
11. You’re Relying Too Much on the Crowdfunding Platform
New entrepreneurs often tell me they’re going to launch their product on a crowdfunding platform — great. So I ask them how big their email list is, how many bloggers and publishers are ready to write about the launch. Huh? They think if they get traction on the platform, crowds will rush to their campaign. Even though that’s true, you need to first solve for the initial traction part.