What’s The Next Step If Your Crowdfunding Campaign Fails?

What’s The Next Step If Your Crowdfunding Campaign Fails?

It is strikingly common for crowdfunding campaigns to fail. Only 35% of the crowdfunding campaigns on Indiegogo end up receiving the exact amount which they had targeted. We call these campaigns failures but that is not necessarily so. India crowdfunding too, needs some training as to handle campaigns when they turn out to be “failures”. Here are some ways which you might need to explore if your crowdfunding campaign has failed.

  1. Did you enable the flexible funding option when you started your campaign? Most sites in India have this option. This means that you will receive the funds that your contributors have given you with the service fees of the website levied on them. Therefore, depending on the service fees, an average of about 90% of your collected funds can be claimed by you. This is particularly useful in a medical campaign where every dime matters. Even in social and business campaigns, you can start work with whatever money you have raised. To raise the remaining amount, you need to start another crowdfunding campaign.
  2. Why another one if your first has already failed? Here is the reason. Most crowdfunding campaigns fail because of a lack of publicity. Campaigns lie untouched on the site for too long. If you have to run a crowdfunding campaign, you have to aggressively work your publicity. This would require you to form a team and work with them, asking them to do part of your publicity while you are working on the campaign yourself.
  3. How do you form a team? You can form a team by getting in touch with as many trustworthy, social-media savvy people that you know. They can manage the day- to day- handling of your campaign and significantly reduce your burden of work. More people on your team also means more visibility.
  4. Consider going the good old way. If crowdfunding on the internet has partially raised your target, consider talking to friends, relatives etc. to invest in your campaign to raise the rest. This enables you to escape the internet and do something in the traditional way. It is a useful approach to take sometimes.
  5. Fundraiser in India suffers from a lack of knowledge about crowdfunding. This is why it is very important to educate yourself about the nitty-gritties of crowdfunding before starting your work online. This is something you should definitely do for your project.
  6. Crowdfunding in India may have failed you but there are other options left. Consider taking a factoring loan. This is a kind of loan where you directly borrow from the lender without having to go through any middleman. This is useful for those who release goods after a longer time. For example, in the fashion industry this is useful as there is a long time gap between the release of the product and the sale of it. Factoring loans, where the securities come in the form of invoices, mean that you can take your time, design and release your product when you want to.
  7. If you have gone for equity crowdfunding and it has failed, try other forms of crowdfunding for your product. Have you tried debt crowdfunding and rewards-based crowdfunding? Often alternative crowdfunding types raise better amounts of money. Sometimes we fail to notice that our crowdfunding campaigns are ill suited to the type we are trying to for them under. A complete overhaul in terms of type, site, people, video and fundraiser might result in your campaign raising more money.

Crowdfunding is a great low risk way to raise money. If you have failed once, there is no reason why you should not try it again.

Category Business