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FOUR REASONS WHY YOUR CROWDFUNDING CAMPAIGN ISN’T WORKING

posted Jun 19, 2014, 1:20 AM by Siamak Ebarhimi


As crowdfunding becomes a more common method of fundraising, it’s easy to think of all the reasons why a crowdfunding campaign would appeal to donors and attract funding.crowdfunding marketing


https://sites.google.com/site/crowdfundingsmadeeasy/about-us

Maybe the donations are supporting impoverished communities in third-world nations. Maybe the donations are providing the funds necessary to launch a promising business start-up. Heck, maybe they are even helping to fund your child’s college tuition. Whatever it may be, there are plenty of Google results out there on why crowdfunding successfully attracts donations.crowdfunding advertising

Related:
- You Created a Crowdfunding Campaign, Now What?

Yet, your donation page remains surprisingly empty. Why? To answer that question, perhaps it’s time to start considering some of the most common reasons why a crowdfunding campaign does not work:indiegogo marketing

1. OVER THE TOP CLAIMS AND DESPERATE PHRASING

You many not have given much though to the language that you are using while you are writing out your crowdfunding requests, but studies have shown that there are several big no-no phrases when it comes to asking for money. First off: desperate language — don’t use it. For example, take the phrase “Even a dollar can.” In a study of 45,000 crowdfunding projects, researchers found that the seemingly innocent phrase can make the difference between a successful project and a failed project. The key takeaway? Confidently request money; don’t grovel for it.kickstarter marketing

Another cautionary tale concerns claims that may be interpreted as promises that you can’t deliver on. This can include phrases such as “100 percent of your donation goes to the cause”. Unlike desperate phrasing, these claims are not always a bad idea — if you can justify and validate the assertion, then they can work in your favor. However, be careful of turning away donors who may be skeptical of things that sound too good to be true.kickstarter project

2. IMPERSONAL

Let’s face it. You can hire the best graphic designer in the world, but an online button will never have quite the same touch to it as a personal request to donate. Think back on the countless online links and emails asking for money that you have yourself declined and ignored. In the eyes of the masses, your crowdfunding campaign will be no different. When all’s said and done, you can hardly blame your donors for passing over your crowdfunding page when all you did was send them a Facebook notification asking for financial contributions. Thankfully, there is a solution.

Instead of viewing crowdfunding as an online platform, view it as an online tool that should be used with other marketing techniques — mainly, ones that restore an aspect of personal touch to your efforts. For example, considering writing name-personalized donation letters that provide the link to your crowdfunding page rather than linking potential donors to your site via social media posts or mass e-mails. Letters are harder to ignore, and serve as a constant physical reminder to your donor.CrowdFunding advertizing

3. ONLINE PRIVACY AND FINANCIAL SECURITY

Of all reasons that donors opt out of online giving, online privacy and financial security concerns are two of the biggest and most important reasons. According to a research study conducted this year by Truste, a global data privacy management company, consumer online trust has hit a three-year low, with 74 percent of 2,000 studied internet users indicating that they are more concerned about their privacy now than a year ago. Additionally, 58 percent of those who were more concerned about their privacy cited fear of businesses sharing their personal information with other companies as the cause of their increased concern. As a result, consumers today are 80 percent less likely to use an app they don’t trust, 83 percent less likely to click an online ad, and more likely to check for privacy certification before sharing personal information on a website.CrowdFunding marketing  

In another study conducted by Javelin Strategy & Research in December 2011, researchers found that 61 percent of consumers who have made online purchases have terminated a purchase during the payment process. 53 percent of these consumers attributed the early termination of their purchase to the possibility of receiving junk e-mail, and 48 percent attributed the termination to fear of having their credit card information stolen. Yet another 41 percent cited fear of having their credit card information misused by the merchant.

In an age when your personal information is increasingly not your own, these online security concerns are very legitimate worries for your donor. To make sure that these concerns are not the factor preventing a donor from clicking the “donate” button, you should make sure to take several precautionary steps.Kickstarter Marketing

To begin with, make sure that the crowdfunding site you are using is a secure site with internal controls, a readily available privacy policy, and a clearly stated statement of security measures. A quick and helpful tip is to look at the URL address of the page on which sensitive information is being transferred. The address link should being with “https”, with the “s” indicating that it is a secure site with secure information transfer and data encryption. These policies will help reassure your donors, and make them comfortable with financially supporting your crowdfunding campaign.Indiegogo Marketing  

4. DISTRUST OF ORGANIZATION

According to a poll taken by CNBC in 2013, the number one reason why wealthy Americans don’t donate more is because of a fear that the money that they give won’t be used wisely. Don’t take it personally — being more financially savvy than everybody else is probably what made these people their money in the first place.

However, what that means for you is that you need to be transparent and clear about what exactly your crowdfunding funds will be financing. It’s all good and well to say that you are crowdfunding for a service-learning trip to Ghana, but that tells your donors nothing about what their money will ultimately be spent on. An item-by-item budget ($3000 for airfare and travel expenses, $1500 for food and lodging, etc.) paints a much clearer picture of why you are requesting financial support, and boosts donor confidence that their money will be used appropriately.crowdfunding  websites

Posted from : http://www.crowdsourcing.org/editorial/four-reasons-why-your-crowdfunding-campaign-isnt-working/32397

By David Khorram  www.CrowdFundingPlanning.com