Crowdfunding success stories do sound fascinating and have an intoxicating effect; but these stories only state the glamour and success that a strong project displays; without considering the hardships suffered along the way. Most successful campaigns have common components; still they cannot be used to form a formula that can guarantee success.
If you think that after putting something up on Kickstarter, you can alert the media and quickly raise thousands of dollars for your dream project; you are mistaken. Crowdfunding sites are not magical money-making machines. These sites are simply providing an efficient way for you to reach many potential sponsors instead of calling them or meeting them in person, one at a time.
Crowdfunding may appear easy, but running a crowdfunding campaign is a lot of work. So, let’s get the truth about misconceptions that regard crowdfunding campaigns as easy and free money.
Crowdfunding campaigns need your time. It takes months to prepare a campaign. You need to build up relationships with supporters and develop promotional material long before you launch your project. If you spend only few hours a week, you will soon realize that it is a full-time commitment. According to Pozible’s Handbook, an average of one hour a day is good, but it seems a bit low to generate best results. Crowdfunders actually need to dedicate their lives to their projects.
Test of your skills
Giving time is not the sole requirement of your campaign, it also requires skills. You must have skills and knowledge to communicate with your supporters clearly and consistently. For technology-based projects, for instance, a technical background is a must. Crowdfunding may unlock the door to an opportunity, but availing this opportunity solely depends on your abilities. So, shooting a video and uploading it on social media is not enough; great forethought is required to avoid poor communication with the people who can make your campaign a success.
Not a Fast Road
It is important to realize that equity crowdfunding is an effective alternative option for startups to secure capital, but not an easier one. Nor it is a fast road to success because crowdfunding demands more work in many ways. If you are crowdfunding your business, the same quality of business planning is required with an additional burden of marketing, networking and negotiating.
A Ticking Clock
When you are on a crowdfunding site with your products or services, you need to deliver with a ticking time clock. Developing a business with numerous financers keeping a watch on your every move not only sounds stressful, but it really is stressful as well. This mostly happens with developing consumer and hardware products that need to be brought out from your fantastical imagination into manufactured reality. You need to be quite diligent in this regard; otherwise crowdfunding can actually crash your idea before it becomes a reality.
Although crowdfunding seems like every start-up’s dream come true; a smart entrepreneur must know that getting a project funded through crowdfunding is not as easy as it may look.