There are a lot of reasons why Kickstarter campaigns fail to raise funds.
It’s sad to see Kickstarter projects fail and you are probably wondering why it happens.
This way, you can steer clear of any of these pitfalls and make sure that YOUR project is successful.
Depending on the category on Kickstarter, failure rates can range from 50 to 80%. Yikes!
Let’s dig into some of these verified reasons why crowdfunding campaigns do not hit their fundraising goals.
(Note: these reasons are verified from KickstarterForum.org)
1. Not Enough Demand on Kickstarter/Indiegogo
The first reason is that the product itself does not have product-market fit.
This means that not enough people want to buy the thing that you’ve created.
Remember, backers support projects because they want to get access to perks and rewards. Most often, that is the ability to own the product.
If you’re not getting people to pledge money, then it could mean a few things:
- They don’t experience the problem the product solves
- They aren’t willing to pay money to solve the problem
- They don’t believe your solution will address the problem
- Emotionally, they don’t find your product compelling (more on that later).
I’m assuming that you’ve done your marketing right. Basically, you’re finding out that the market isn’t big enough for the product you’re making.
There are enough customers to make a sustainable business out of this thing.
Dig?
It sucks to hear, but at least now you can move on to another product idea.
2. The Pre-Launch, Promotion, and Marketing Sucks
Your promotion isn’t great!
You’re not getting enough eyeballs on the actual page.
Maybe you invented the equivalent of sliced bred, but you’re not telling enough people about it.
Thus, you’re struggling to raise funds.
You need to begin to look into things like:
In other words, you’re a smart caveman.
You’ve created a butterfly net to capture butterflies.
Only… you’re not going out there to a field where there are butterflies.
You’re sitting in your cave and expecting them to come to you.
Not gonna happen.
3. People Don’t Believe Your Promises
In my book, the Kickstarter Launch Formula, I discussed the need to get backers to believe your promises (and some effective ways to do that).
Getting pledges on Kickstarter is all about one thing… promises and proof.
First of all, what are your PROMISING this product, project, game, or tabletop is gonna do for someone else.
Is it gonna solve a problem?
Is it gonna be fun to play?
Will people enjoy the experience you’re creating?
All projects have one core promise. The campaigns that fail to get funding sometimes have difficulty getting others to believe that promise.
For example… I might tell you that I can cure your back pain. Sounds great, right?
But how can you believe me? Unless I demonstrate how my product works, why it works, and how it’s different, then you’re probably going to doubt my assertions.
There isn’t enough trust for a stranger to whip out their credit card, punch in the info, and back your project.
These are a few ways you can address this lack of credibility.
4. Frankly, Your Goal is Too High
It’s hard to hit a high fundraising goal.
Often times, creators are too ambitious with their crowdfunding goal.
All the time, I tell creators during my coaching sessions that they need to lower their goal if they want to surpass it.
The wildly successful Kickstarter campaigns will usually surpass their goal by an order of magnitude.
This mean that if you want to raise $100,000, you shouldn’t set a $100,000 goal. You should set a lower goal.
The sooner you surpass your goal, the faster you will trend on a crowdfunding platform. The easier it will be to attract super backers.
Don’t make your life more difficult than it already is by setting a high goal.
5. You’re Not Familiar with Kickstarter
A lot of the times, entrepreneurs and creative types will launch a crowdfunding campaign without taking the time to study other projects.
They aren’t familiar with Kickstarter, how it works, and how to be successful.
They haven’t done basic stuff, like look into courses, buy books, or reach out to an expert who can help them out.
Take some time to study the actual platform and get a feel for what goes into a good project. Watch videos, back campaigns, and see how they do their marketing.
This research will pay off later when you present a project that backers LOVE and want to share with their friends.
6. Poor Campaign Design
You might have the best product in the world, but if you can’t communicate its value effectively, no one knows that!
To design an effective campaign page, I recommend following these steps.
A good page will accomplish a few things including:
- Be emotionally evocative
- Having a watchable video
- Great titles and transitions
- Killer images/GIFs
- Well-thought-out rewards & perks
Basically, your campaign page functions as a sales page. You want it to convince people to become a backer of your project.
They will make judgements about your product based on the quality of your Kickstarter page.
7. You Haven’t Invested in It
The final reason that I see contributing to the failure of crowdfunding campaigns all over the world is that the creator isn’t invested.
Usually, this means they aren’t willing to put their own personal reputation on the line to see the success of the project.
They won’t share it with their friends and family.
They won’t announce it to their professional network.
They hope that it will just get funded by strangers.
If you’re not personally invested, it’s going to be hard to convince strangers to get on board.
The same is true of a financial investment. Every business starts with some kind of financial investment from the founder.
I recommend investing in marketing and advertising for your project. Bring on coaches like me to help. Invest in yourself through quality education.
I hope that these tips will steer you onto the right path with your project. You can also get more information down below on my newsletter.
