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Crowdfunding pitfalls and how to avoid them

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As more and more people, families, and nonprofits enter the space of crowdfunding India, more campaigns are being launched on the internet each day. However, many campaigns fail to raise any money at all, and campaigner don’t seem to understand why. With more people launching campaigns everyday, you need to ensure your campaign has an edge and stands out from the rest. So today we’re going to tell you some common faults with most crowdfunding campaigns, and how you can avoid them.

Assuming that crowdfunding is effortless money

The most common misconception is that crowdfunding is easy and is basically just free money. Well that’s not true, and anyone who’s ever attempted to raise money online will be able to tell you that. Crowdfunding is a practical and easy solution for money crunch, but it doesn’t come effortlessly. A lot of planning and strategizing goes into a campaign before it is launched – right from planning a budget, to choosing a platform, to writing a campaign story, to having a marketing plan. Speak to someone who’s successfully raised money through crowdfunding, and ask them what kind of work went into it. That’s the only way to really know what you’re in for, before starting a crowdfunding campaign hoping money will simply start flowing in.

Choosing the wrong crowdfunding platform

Now that crowdfunding is gaining a lot of popularity among people, businesses, nonprofits, and families, a lot of category-specific crowdfunding websites have launched, that specialize in a certain category of crowdfunding. There are crowdfunding websites for medical treatment, for art related projects, for travel, for nonprofits, for animal welfare initiatives, for businesses, environmental causes etc. On the other hand, there are certain platforms like Impact Guru, that have sufficient experience in multiple categories. You must choose a platform based on your cause, your needs, and the experience of the platform. A little bit of research on the various crowdfunding India platforms, will help you make the right choice.

Setting a fundraising target that’s too high or too low

Crowdfunders often set target that are too aggressive, that donors feel like their money won’t make a difference, or their target is too low, that donor’s feel like their contribution is not necessary. The only way to avoid this problem is by planning a budget and a fund utilization plan for your initiative. That way you’ll have an accurate target for your fundraiser.

Not offering something in return

People are always looking to get something in return for their contributions. Giving out rewards to donors is a great way to incentivize people to donate to your cause. Rewards can be in the form of free tickets, free merchandise, meet-and-greets, workshops, thank you notes, free samples, or something as small as a shout-out on social media. Certain websites like Impact Guru have tax benefits for donors, which is an additional motivator for supporters.

If you’re new to online fundraising, we hope this article will help you learn from the mistakes of others. Launch your first campaign on Impact Guru’s crowdfunding India website today!

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