Myths About crowdfunding

Top 5 Crowdfunding Myths

offline_ECDCWith the growing popularity of crowdfunding, it seems that everyone wants to launch a campaign to raise money for something. Those who do it well make it look easy, but the truth is that running a successful campaign takes work. In many ways, it’s like running a business: if you want your crowdfunding campaign to succeed, you not only need a plan of action, but you also need to be aware of the pitfalls to avoid.

Here are the top 5 myths about crowdfunding – let these serve as a guide for what not to do when launching your own crowdfunding campaign:

1. If You Build It, They’ll Just Come

Just because you slap up a donation site, doesn’t mean that people will automatically visit it and start donating. Yes, there have been isolated cases where a local story went viral and inspired millions to give, but these are the exceptions, not the rule. The reality is, how you set up your crowdfunding site matters and having a marketing plan matters even more. You need to have a roadmap for how you are going to launch it, build momentum and get people to share by leveraging your social network.

101_Graphic_30_Lemonaid_Stand2. My Social Network Doesn’t Matter – I’ll Just Ride the Wave of the Crowdfunding Craze

In actuality, it really is all about your social network and your ability to leverage it. There’s definitely a persistent myth that there are millions of benevolent donors just trolling the Internet to find you and give to your cause. This myth is bolstered by crowdfunding sites that promote the power of their community to support your campaign. For the most part, that’s just not the way it works – people don’t hang around these sites looking to dole-out money.

Approximately 70% of contributions will come from your personal network, so having a plan for how to tap into that is key. Think about how you can build momentum early, make that thermometer rise, and show some traction. Start with the key influencers in your life. Who can you personally tell about your campaign to get them on your side to contribute first? People like to follow the herd; if they see others giving, they are more likely to give, too. But this doesn’t happen magically. You need to think it through and have an outreach plan.

101_Graphic_30_Social_Network3. If My Cause Is Amazing, That’s All That Matters
Amazing to you, but you’ve got to make your case to others. Having a cause that you are passionate about is important, but it’s not enough. Think of your crowdfunding site like a storefront: it has to be well designed, welcoming and engaging enough to draw people in and incite the desired action. Deposit a Gift’s easy donation mechanism that gives you the freedom to showcase what you’re all about. What are the factors that can do that for you? Pictures, pictures, pictures…and video if you’ve got it!

People like pictures: they put a face on the campaign, showcase what you are doing and enable people to feel a personal connection. Have a clear, thoughtful, succinct story with just enough detail to compel people to participate. The sum of these parts gives your campaign the credibility it needs, so that even someone in the outer rings of your network would want to get involved and be a part of it.

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Echo Bay Books Crowdfunding Secrets: Tips, Tricks and Secrets To Funding Your Dreams (Quick and Easy Guides)
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My new wood carving business can use your help

by CarvedInGrain

Hi, my name is Louis Colasanti, owner of Carved In Grain, LLC in Saint Robert, MO. Carved In Grain will be a custom wood carving company providing services to homes and businesses for signs, plaques, decorations, displays and furniture. We are registered with VeteranOwnedBusiness.com and sponsored by the VSBAF (Veterans Small Business Association Federation). We are looking for some community support to help put all of this together.
As part of the business start up, we also launched a crowdfunding campaign. If you are unfamiliar with crowdfunding, it's basically a concept of putting together a presentation about your business or idea, hosting it on a crowdfunding site, and sharing your campaign with the general public in the hopes of finding people who like and support your idea...

iFunding Hosts Real Estate Professionals Mixer in VA/DC Area on May 18, 2014  — Virtual-Strategy Magazine
This is an opportunity for those in real estate investing to exchange information, learn about crowdfunding as a method of rapid fundraising for real estate projects, and enjoy complimentary drinks and hors d'oeuvres.

O'Reilly Media The Hardware Startup: Building Your Product, Business, and Brand
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Problemio.com Funding & Fundraising Ideas
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  • Five articles on the topic of raising money for business or nonprofits via loans, grants, investment, or other means
  • Ability to ask questions which are answered by a live entrepreneur (responses within 48 hours)
JD-Biz Corp Publishing How To Use Crowd-Funding To Raise Money For Your Business Ideas (Make Money Online)
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McGraw-Hill The Crowdfunding Revolution: How to Raise Venture Capital Using Social Media
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