Why do Crowdfunding Campaigns Fail?

Without looking into the specifics of the crowdfunding campaign, I can only provide some insight as to why a crowdfunding campaign has no backers.

For me, crowdfunding is the most satisfying way to raise money, but it takes tenacity to pull off a successful crowdfunding campaign.

1. Plan.  In order to be successful at any fundraising attempt, there are layers of pre-planning that must be completed. Even though you decide at 3:00 AM that you need to fund your grand idea –Don’t submit a crowdfunding campaign before you have planned out the entire campaign from setting goals to fulfilling rewards. Successful crowdfunding campaigns take months of preparation.

2. Learn about how the crowdfunding platform that you have chosen works. Create a complete profile. Pay specific attention to how any sharing features pull the campaign content. For example, when working with the Funder Hut™ platform, use this quick sheet to plan

3. Provide value. What are you providing to the backers as an incentive to support your campaign? The reward valuation needs to be considered carefully. Unless it is a nonprofit crowdfunding campaign, would you donate $10 for a Twitter shout out? Me neither.

4. Show and tell. People process information differently. So be sure to accommodate everyone by including video, images and inforgraphics along with narrative text for the project. Visuals of the rewards should also be included. Do you spend money without seeing what you are receiving?

5. Exude gratuity. Be thankful and excited that others are sharing in your vision. The biggest turn-off for backers is an air of entitlement. You may think your project is the best thing since sliced bread, and it very well may be. But you don’t want to alienate potential backers and possibly future customers.

6. Build the crowd. Many people come to me with innovative ideas and projects but cannot effectively market to the crowd because they have not considered their target customer in their crowdfunding marketing plan. Get out of the mindset that “if you build it, they will come.” Less than 10% of crowdfunding campaigns are found by people browsing the crowdfunding platform.

7. Learn to promote. Don’t rely on the crowdfunding platform for promotion of your campaign. Many platforms highlight or feature only popular campaigns. Don’t be scared to ask for money! If you don’t have the confidence in your project, why should a potential backer? Be authentic and share your dream. Don’t hire someone to help you get likes, follows, etc. these tactics don’t work.

8. Go offline. Host events, live demos, street teams, gamify, make calls, etc. Don’t isolate your efforts exclusively online. Even bootstrapping entrepreneurs can come up with promotional activities that don’t involve spending boatloads of cash. Be creative and engage your community.

**This is a question that I get a lot so I thought it would be a great question to begin the new Mailbag Mondays blog series. ~Rachael 

Got a question? Send an email to Rachael@RachaelAlford.com  Due to the volume of email received, your question is not guaranteed to be answered and featured here on the blog.

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If you need help creating or planning your crowdfunding campaign, Rachael Alford Consulting Services offers interactive workshops, campaign plan or page critique, full campaign management and commission based options.

Conducting Business Using Google Hangouts

[Post, Podcast, Video] Google hangouts have been an invaluable resource for my business. I typically use them to provide client consultations, mentoring, workshops, and virtual meetings.

As a solopreneur, I gauge my efforts not only by the return on investment (ROI) but also by the return on time (ROT). This means that productivity planning is a big part of how I manage the administration and operational aspects of Rachael Alford Consulting Services .

Recently, I hosted a Google hangout on-air (Hangout about Hangouts; see below) with +Anetra Henry Hunting of the Hunting Group (http://www.anetrahenryhunting.com). I shared tips and techniques for providing  agenda and SWOT analysis templates using the productivity application +Symphonical integrated with the +Hangout Lower Third. Anetra Henry Hunting discussed suggested best practices and techniques for conducting on-air hangouts.

Even though the instructional on-air hangout was 1 hour and 15 minutes, I did not delve into setting up Symphonical templates for business consultations. I continued the conversation in the second episode of Solutions for Success with Rachael.

In the podcast, Virtual Business Consulting Using Google Hangouts,  I discuss how using Google Hangouts to conduct virtual business consultations are beneficial for both the potential client and the consultant. I also discuss how using Symphonical during virtual business consultations boosts consultant productivity as well as increases sales. LISTEN NOW

You will need to queue the following walls before you watch this video:

Demo Wall: Hangout Agenda

Demo Wall: SWOT Analysis

Hangout about Hangouts with Rachael Alford & Anetra Henry Hunting

Additional resources for preparing to host and marketing a hangout on air can be found in segment 4.

Laying the Foundation [Post and Podcast]

I just finished the first podcast, Laying the Foundation on my Blog Talk Radio show Solutions for Success with Rachael, and most certainly; everything that could go wrong- did! Due to technical difficulties, it started late (although it begins for the listener at 00:22) and because I only scheduled it for 15 minutes- I ran out of time to share everything that I wanted to say.

In this inaugural episode, I decided cull questions from conversations that I have had with aspiring entrepreneurs, entrepreneurs and small business owners with the hopes that my listeners can glean some insights on how to enhance their success efforts.


TIME MANAGEMENT

Question 1: Between my full time job and my kids, I have no time to dedicate to opening my own business. Help!

Tick, Tick, Tick...

As I shared on-air, every entrepreneur has to come to terms with time management. If you are having a hard time navigating the waters of a work/home balance- join the club! This is not my attempt at commiseration but rather, stated to comfort you as you are not alone in this struggle.

In the coming weeks, I will be pod casting about specific time management tips as they relate to productivity planning.

PROPRIETARY RISK

Weigh the Risk

Question 2: I have a great idea and need money in order to make my dream a reality. The problem is that I am afraid that someone will steal my idea before I get the chance to develop the product. What should I do?

If you are concerned about publicly sharing proprietary ideas; it is a risk and a valid concern. But it's up to you to weigh that risk.  Do you need a cash infusion? With that cash infusion, can your product/idea come into fruition? If no, then I would not go with a public crowdfunding campaign or I would chose to phase fund to minimize the risk.

I NEED MONEY

Question 3:  I am an aspiring entrepreneur. I have what it takes to be an entrepreneur but I need money first! It seems like a never ending circle. Where can I turn for start-up capital?

Drip, Drip, Drip...

Absolutely! How can a business emerge without money? But you also need to have the passion (drive), plans (business, financial, marketing, feasibility, exit, etc.,) and action.  Inaction due to limited or no funds is inexcusable in this day and age.

I suggest joining an amazingly supportive community with 15,500+ members that I co-moderate: Entrepreneurs, Self Employed and Small Business. 


OK but, Where to find funds?

If you are located in the US, you can apply for small business and start-up loans via the Small Business Administration. You can also search for grants, sponsorships and competitions. If you are here, you have probably already tried those options and are seeking more. Try this:

• Merchant Processing Resource (this is the one I mentioned in the podcast- re: +Sean Murray )
• Crowdfunding ( +Kickstarter +Indiegogo +Gofundme )
• Drip methods

In upcoming pod casts, we will really dig deeper into funding possibilities.  Be sure to follow the show so you don't miss out.

Listen to the show and continue  the conversation by using the hash tag #RachaelChats (across platforms) or by commenting below. 

LISTEN NOW

Crowdfunded in 12 days: A Success Story

Successful crowdfunder, Robert Torres is one of the founders of Black & Denim, an American Made denim and apparel company with manufacturing provided in California and distribution occurring in Tampa, Florida.  Many aspiring entrepreneurs, investors and the curious watch and live tweet during the Shark Tank show every Friday so when Mr. Torres sent a tweet about his KickStarter campaign using the hash tag “#SharkTank” during the show broadcast, it caught my attention.

Because I teach crowdfunding workshops, I am always on the lookout for projects that implement the advice that I give my students. In this case, Black & Denim has leveraged the entire Shark Tank network by creating a tie-in to his project and by being bold enough to follow through. Remember how I was talking about being bold in this post?

After auditing the Black & Denim campaign, I could clearly see the forethought and planning that it took to launch the campaign. Below, Mr. Torres answers some questions that I posed in an effort to help you understand the complexities and value of planning the campaign from a successful crowdfunders’ perspective.

An Interview with Robert Torres, Co-Founder Black and Denim

Q: What made you decide to crowdfund your project?

A: The decision came easy as this allows us the opportunity to connect with more customers that we normally would not reach. It also allows us to create “Brand Ambassadors”. You normally do not get the opportunity for this since most of the customers that we have shop at specialty boutiques and cannot meet us in person. Through our video people can develop an emotional connection.

Q: Why did you decide to use Kickstarter as your crowdfunding platform?

A: It is the biggest one. It has the most people and is the most successful one. The goal of crowdfunding is not to go viral. It is to draw the most eyeballs to your campaign as you can. Making it as a ‘Staff Pick” is pretty hard in itself. That should be your goal!

Q: How long did it take to plan and launch your Kickstarter crowdfunding campaign?

A: 6 months. It takes a lot of hard work and careful planning.

Q: What does your marketing plan look like?

A: Marketing plan is full of dreams with a big 0 in the budget. We use Guerrilla marketing at it’s best. We use twitter and facebook the most to get our name out there. Knock on doors and go to festivals and speak with people. It is the best way to get your name out there. Big companies can afford big marketing budgets. We do have marketing campaigns, just execute them differently.

Q: You held a live in-person Kickstarter launch party and sent tweets throughout using the hash tag #SharkTank. Why?

A: We understood that people that watch the show is all about business (or want to be one day). The live tweet party gives us the opportunity to connect with them. They want to root for the little guys! We are the little guy! Also, the numbers do help. 

They dominate the demo of 18 to 55 on Friday’s (Prime Time) drawing 6.1 million people in ratings. They beat every other show out there. The big plus? People are already in front of their computers! Or wireless devices. This gives us the opportunity to throw a link at them, they click it, watch the video and decide whether they want to support the campaign or not.

Q: Your project is currently almost funded ($18,259/$20,000) in less than 2 weeks! To what do you attribute your success?

A: Hard work. We made sure that everybody knew that our campaign was alive. When we hit the goal, it was not over. We still had 24 days to go, so we decided to double our goal to 40k.

EDITOR NOTE: This project has now has exceeded the funding initial target goal with 12 days left in the campaign. Currently numbers are $27,560/$20,000 at the time of this writing.

Q: Do you have a crowdfunding tip you can share with us today?

A: Preparation, preparation, preparation! You really do not want to rush it. Study your space. Make a board, craft your speech. Study every other campaign in your space out there. Make sure your video is ON POINT. Good rewards are the sure hook (make them a no brainer). Lastly, make sure everybody knows about it. You never know when the first donation is going to come (or your last). I know you said 1 tip, so think of it as a paragraph tip. Ha ha!

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About Black & Denim: Made and sourced with 100% American Raw Materials, Black & Denim® is a Lifestyle brand with a spirit as resilient as the American Dream. It conserves the essence of the History of American craftsmanship where it was born. Its authenticity is expressed though its collections made of casual articles of clothes and accessories for men that are inspired by Americana, Music and the American lifestyle.

Black & Denim designs, manufactures and distributes seasonal and comfortable garments that are inspired by our American Heritage. The premise of being in tune with the fashion trends without becoming a victim of fashion is materialized through contemporary basics -with classic touches- that make the perfect balance between comfort and elegance.

American Inspired. American Made. American Owned.

Connect with Black & Denim:
Kickstarter Website Twitter Facebook Tumblr Pinterest Instagram 

Progress not Perfection

My daughter is in Kindergarten and is having a hard time learning to read. In an effort to help her stay excited in the process, I bought her a reading game.

Soon after she begins playing I hear her exclaim, “This is the best game on Earf!“

“Earth,” I say.  “Earf,” she replies.  “Ear-TH,” I carefully enunciate.

Then in true Porky Pig fashion she says with a smile, “This is the best game in the WORLD!”

My purpose for giving her the game was to get her excited about reading. Here she was, showing her excitement for the game and I am now focused on her speech.

Then a thought came to mind: Strive for progress not perfection. This is the mantra we must all hold in our hearts. It’s an old adage but it will always ring true. 

I keep reading about potential entrepreneurs just spinning their internal wheels, staying stagnant and never progressing; but not for lack of drive or ability but because of indecisiveness or inaction.  Don’t be the one with all the ideas bubbling under the surface. Don’t lose focus. Don’t make excuses. Make progress, take action.

You won’t be perfect. You can’t be. Strive for constant progress.

 
I invite you all to comment on how you are progressing in your entrepreneurial efforts.

I Dare You to be Bold

Remember when, as kids, you couldn't pass on a dare? Well, in that spirit- today I dare you to be bold in the pursuit of your dreams.

This past weekend, I joined a terrific G+ community (+virtual assistants) and soon after, one of the members contacted me privately. She was an administrative professional who was ready to throw in the towel, feeling overwhelmed with launching her home based virtual assistant business.

She worked as an administrative assistant for several years and felt secure in her administrative abilities but found the whole start-up process daunting. Most people agree. But so what?

The more we talked, the more I heard a laundry list of excuses. We finally got to the root of her issue: she was afraid of failure and success. I find this is often the case with budding entrepreneurs.

We went through an exercise of "what if" where I introduced several success and failure scenarios and the more we went through the "what if" situations, the more confident she became when she realized that either she already knew her next steps or knew where to look to find solutions. 

So today, I challenge you to delve a little bit deeper into your internal well and boldly acknowledge your obstacles- and one by one- conquer them.


Tag, you're IT!

Successful Crowdfunding Campaigning Workshop… We have lift-off!

Having personally raised over $8 million dollars for various clients, most of you already know that I am a huge advocate for collaborative fundraising.    

What most of you don’t know is that I have spent the past few months designing a crowdfuning workshop curriculum for folks who are interested in crowdfunding campaigning.   Although the platform of crowdfunding is relatively new, seeking financial backing is not.   

I have kept the virtual professional and budding entrepreneur in mind by specifically designing this crowdfunding workshop to allow the participant the opportunity to learn how to pragmatically plan, write, discuss and launch their own crowdfunding campaign.   

Additionally, as an active peer mentor, virtual assistants and administrative consultants alike have asked me how they can leverage their existing skills and add crowdfunding campaigning to their services provided.  To maximize accessibility, there are day, evening and Saturday options.

Successful Crowdfunding Campaigning Workshop Includes:

SESSION 1:  Planning a Successful Crowdfunding Campaign  (1 hr)
SESSION 2: Writing a Successful Crowdfunding Campaign     (1 hr)
SESSION 3: Case Studies and Crowdfunding Roundtable      (2 hrs)

SESSION 4: Launching a Successful Crowdfunding Campaign (1 hr)

OPTIONAL: One on One Campaign Critique (30 mins)

Learn More or Register >>