Top 5 Ways to Fail at Crowdfunding
This post originally ran on Sheri Candler Marketing and Publicity’s blog
I am prompted to write this post because I have been hit up many times lately about supporting, advising or donating to various crowdfunding initiatives. Don’t get me wrong, it isn’t quite a complaint because I have been known to support many campaigns by doing any one of these things (ask anyone else offering their advice if they have done any of these things by the way, the answer could surprise you). I do get frustrated by the ones who contact me because they have embarked without thinking through the strategy or they are very close to the time limit and very far from their goal. I thought it might be helpful to list out some ways to fail in this endeavor so you can be sure to avoid these mistakes.
1) You do not already a have a support network online. This is a biggie. I know you’re thinking Sheri, how can I already have an audience and supporters of my work when I haven’t raised the money yet to do my work? Do you have a personal identity built up? Does anyone actually know who you are yet? There are many ways to do this, starting with sharing your knowledge and experiences with people and championing others as much or more than you do yourself. This identity building takes time and should be started well in advance of asking for favors. If you don’t have a strong support network of friends, colleagues and people who enjoy the work you do, do not introduce yourself and your project by asking for money.
2) Your goal is unrealistic. At the moment, the highest amount I personally have seen raised is $30K. That was for a feature and mostly used on principal photography. Most of the other projects I have seen find success are raising under $10K. Crowdfunding is meant to get your project started, get your project finished or be used for something clearly defined like a festival run or your own screening tour. It is not going to be your only source of financing for your feature film. In time, as your audience grows, this could change for you. Unless you have the base of fans mentioned in #1, try raising $5k and see how you do.
3) You do not know who your audience is. In addition to that base of supporters, you will also need to reach those most interested in the kind of story you are telling. Many filmmakers just keep their campaigns limited to targeting other filmmakers. Folks, I don’t know any filmmakers NOT looking for money to fund their projects. While they may love and support you, you must venture out of that pool to find alternate sources for donation. I was asked whether I felt that crowfunding had reached its peak yet. Hardly! Ask any average joe on the street what crowdfunding is and you’ll get a blank stare. These are the guys you need to hit up, the ones who aren”t completely burned out by being bombarded by appeals and who might enjoy what you are doing.
4) Your campaign length is too long. Kickstarter has advised that the most successful campaigns are the shortest. Why? Because you and everyone else you know gets exhausted fundraising for 90 days. The campaign starts off strong (you hope) but somewhere around the 30 day mark it wanes big time! The momentum stalls, people get tired of shilling for you, you get tired of shilling too. Set the goal for 30 days maximum and work it nonstop during that time. Hint: that doesn’t mean your only communication is donation appeals. A reminder or two a day will suffice. The rest of the time, tell us about what you have planned for the project, comment on other conversations, share some useful links. Don’t be a complete pest!
5) Just offer tshirts and DVDs as perks. Nothing meaningful or imaginative. While I usually do not donate based on the perks, but on how well I know the people and how much I believe they can carry off the project, many people are all about the perks. If you are offering the same run of the mill stuff that can be purchased way cheaper at Walmart than at your minimum donation level, you need to think from the greedy donor perspective. I can get tshirts for $5 and a DVD of a film I have actually heard of far cheaper than a donation at the $50 mark. Get creative on what you can give donors that they will actually like, need, and most importantly, talk about. Are you a great cook? Can you do cool magic tricks? Are you a poet (I’m looking at you John Trigonis)? What can you offer your donors that is special to them and won’t cost you much if any money to manufacture?
Anyone else have some mistakes to add? Advice from those in the trenches is always appreciated.
Sheri Candler is an inbound marketing strategist who helps independent filmmakers build identities for themselves and their films. Through the use of online tools such as social networking, podcasts, blogs, online media publications and radio, she assists filmmakers in building an engaged and robust online community for their work that can be used to monetize effectively.
She can be found online at www.shericandler.com, on Twitter @shericandler and on Facebook at Sheri Candler Marketing and Publicity.
Orly Ravid October 12th, 2010
Posted In: crowdfunding, Uncategorized
Tags: audience building, crowdfunding, donors, DVD, fundraising, Kickstarter, support network