A lot of new businesses and products were able to get the traction needed to be launched in the market by using crowdfunding. With this method, someone can start a project by using his or her ideas, let the organic market see it, and get some fundings to start the project. Because everything is online, starting a business and marketing, it is now easier than ever. There are crowdfunding projects that reached a considerable amount of success.
The Pebble Smartwatch is one of the most successful crowdfunding projects, garnering funds of over $20 million. But not all things are smooth sailing in a Kickstarter. If you’re planning to start your project, here are some of the most challenging things you can encounter.
1. Attracting Interest to the Project
Perhaps, one of the biggest and hardest barriers to success in a crowdfunding project is attracting interest in it. No matter how polished and developed your ideas are, if no one is willing to fund it, your project will not take off. Social media is a great way to attract the interest of your possible market. Advertising using this platform is free, so make sure you’re using it for your advantage. And make sure to polish your ideas to convince more people to support your cause.
2. Setting up Realistic Features
Setting up realistic expectations for your crowdfunding session is another essential factor to consider. Have you ever heard of the shaving razor called the Sark Laser Razon project? That project is like the new decade’s “Star Wars” when it comes to shaving. But since there is no real working prototype, the $4 million funding is said to be wasted, and the backers are not compensated. Setting up great features for your project is a must to attract backers, but make sure that you can deliver the features at the time of release.
3. The Right Platform and Beating the Deadlines
Most platforms such as Kickstarter, IndieGoGo, and GoFundMe are proven and tested to be reliable sites. However, these sites have specific “niches” and might not be best for your project. For example, if you have a new tech innovation, it’s better to advertise it in IndieGoGo because it is known to be a hub for tech projects. While GoFundMe works like a donation hub to help people in need.
4. Delivering the Product On-Time
Last but not least is delivering the product on time. This is likely last to be thought out (or even thought out just before the delivery). Although most crowdfunding delays are due to development, shipping and freight development is also not great. Once the product is complete, consider getting help from third-party logistics services, especially on bulk orders. You will not only ensure the timeliness of the delivery of your product, but you will also avoid other fees such as taxes and duty issues.