7 Reasons why your Crowdfunding Campaign may Fail

8 Tips on How to Get more Crowdfunding campaign support
September 13, 2015
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7 Reasons why your Crowdfunding Campaign may Fail

Crowdfunding is one of the easiest and most reliable ways of raising capital for a given project and its benefits range from hedged losses to readily available market as well as a strong customer base. Although sites like Kickstarter and Indiegogo have helped several people raise incredible amount within just a short period of time, not all crowdfunding campaign initiatives often end up in success. There are many such campaigns that have yielded extremely undesirable results. All failing crowdfunding campaigns have a reason for the failure. It is important to understand what elements and factors can lead to failure and address them well in advance to prevent such outcome. Here are some of the reasons why your campaign may not be successful as projected.

Lack of competitive edge (uniqueness) 

Before investors or backers agree to spend their money on any project, they will first assess a number of things including the risks, benefits and competitive edge. It is quite rare for investors to support projects or ideas that are not unique and do not depict any advantage over existing competition. Selling ideas, products or services that are not idiosyncratic, captivating and unique can be overwhelming and convincing investors to contribute in a crowdfunding site is even much harder. This is one of the major reasons for failed crowdfunding campaigns. It is therefore important to ensure the idea or project is unique and provides various benefits that showcase its edge over competition.

Giving money


Non-emotional campaigns

Getting both the crowd and investors excited is an inseparable aspect of successful crowdfunding campaigns. Campaigns that lack emotion and passion will face various challenges connecting with investors and the audience. Lack of emotion will indeed provide a poor image and cut down the number of audience. However, not all emotional campaigns result in success. It is important to understand what type of stimuli the audience and investors will respond to and then deliver the same stimuli. Having a successful campaign is all about connecting with the crowd and proving to the investors that your course is worth supporting.

Poor planning and organization

To pull off a successful campaign surely takes much effort, resources and time. You will need to dedicate several months towards planning, networking and getting various things in place prior to launching the campaign. Crowdfunding has no real automation and can never be set up for a single day to cover everything. You will have to plan most activities around the campaign and take advantage of any opportunity that comes along. Poor planning and organization will definitely lead to failure. Some of the characteristics of a poorly planned crowdfunding campaign include the following;

• Insufficient time spent in planning and promotion

• Inconsistent campaign message – whenever the core values are not clearly defined and no vivid strategies are in place to achieve measurable goals, it will be difficult to bring everyone on board.

• Complicated campaigns – it is advisable to keep advertisements simple and sweet. Too many complications will drive away a significant portion of your audience who will feel lost.

• Campaign that targets the wrong crowd can hardly prosper. It is important to bring the right audience and people into the loop and resist ideas like targeting everyone or just one

Other minor characteristics like insufficient communication also lead to failure. It is often best to include a video for your campaign as this illustrates your plans, goals and strategies that will be used to achieve each of them. Make sure it is of high quality.

Unrealistic funding and finance goals

This is another major reason for failed campaigns. Many people looking for crowdfunding have fallen victim to overlooking a number of aspects about their plans and funding is one of the key aspects overlooked. Setting unrealistic funding goals can lead to under-financing due to erroneous predictions of capital requirement. It is necessary to device comprehensive plan that covers all possible scenarios and have effective measures to counter uncertainties. You will attract the right amount of funding only if your plans and predictions were close to precision.

Insufficient exposure

You can have the right plan, intriguing idea and the right messages yet still fail to achieve desirable success. This is mainly due to insufficient exposure. Some people simply put up their projects in crowdfunding sites and then wait for the contributions to start rolling over forgetting the importance of advertisement, message sharing and exposure. It is advisable to exploit various platforms including social media, forums and even websites within and out of your networks. However, this does not mean spamming and inconveniencing others with bugging messages and mails. Exposing a project to the crowd is unlike sales strategies employed to capture leads. It should be moderated and exploited with top insights. Nonetheless, insufficient exposure will surely cause failure.

Wrong timing and sticking to online

Depending on the target audience, it is important to set the right time to launch the campaign. For instance, if you are targeting investors from other countries, checking their time zone and what times they are most available to interact with the campaign is essential. Another major reason for failure is assuming that online engagements are sufficient for success. Although most crowdfunding campaigns are kick-start online, you must take the project to the real world and spread the message to your surrounding. The internet is simply one platform to exploit and brings many people together. However, there are many other platforms through which you can get more people to join the campaign.

Investors do not see enough value

Investors that fund campaigns are mostly drawn into the project when they perceive enough value. If there are no enough perks to reap from the success of that project, it is simply not worth their investment and they will likely fail to contribute. The project should therefore strongly affirm that stakeholders will have a desirable piece of the cake when it is all done.


There are several other minor reasons why a crowdfunding campaign may fail. If the owners of the campaign have no experience, they will certainly encounter more challenges. The best solution for entrepreneurs with insufficient experience is to associate with other people and investors with more experience in the given field. Successful campaigns begin with comprehensive planning and budgeting. Ensure all aspects of the project and campaign are analyzed and properly planned. With the right plan and a few expert insights, pulling off successful campaigns should be less daunting.

Learn more about why crowdfunding campaign’s fail

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