BUSTED: Top 5 Crowdfunding Myths
Myths are everywhere! And they make our world more interesting. However, they can also create disillusions. Today, we help distill some of the myths you may have about crowdfunding. This is our “What to expect when crowdfunding” guide that will help make your crowdfunding experience a much more enjoyable one. Let’s start with the myth busting:
- All you need to do is set up a campaign
This is the holy grail of crowdfunding myths! You will hear this one over and over and a lot of people actually believe this. However, this is simply not true. You cannot simply expect that people will flock to your campaign just because it’s on a crowdfunding website. The truth is that every successful campaign is backed by a well run, well thought out marketing strategy. Don’t believe this urban myth as the number of the lucky few viral campaigns is very small.
- You don’t need to use social media
While this is one that goes both ways, think about it this way: social media is the most effective way to gain traction and free marketing for your cause. Social media is a necessity if you are looking to keep your marketing costs low. Also, without social media there is no chance for your campaign to go viral. Without social media, it will be much harder to leverage your personal connections.
- All crowdfunding sites are the same
This is NOT true at all. Every platform has some unique features that can help you depending on the nature and situation of your organization and campaign. Almost every crowdfunding platform charges service fees (between 5% to 8%) for you to fundraise on their platform. However, this is not true for Crowdera which is a no-fee platform. This is because we believe that doing good must not be penalized. We also find this practice outrageous because we know the effort you go through to raise funds.
- It’s easy to get your campaign to become viral and get media attention
Having your campaign go viral is the result of a plan, but the plan isn’t to go viral. Every viral campaign is backed by a solid marketing plan. However, almost all of the time a campaign goes viral, it is a result of much thought process and work related to the campaign, its marketing and press coverage. Its also important that the cause behind the campaign should have a mass appeal which is what will prompt people to not just contribute but also share with their acquaintances. It is also That said, no one can plan or predict virality as it’s just simply too hard to orchestrate such a scenario. The truth is that the vast majority of campaigns will never go viral or reach the public’s eye. Less than 1% of campaigns on any platform go viral. But this doesn’t mean you can’t be successful. Don’t let this deter you from making a solid marketing plan.
5, Most of the money comes from strangers
This is easy to believe because so many people scour the internet for crowdfunding campaigns that it’d be hard to believe that most of your donations come from friends, families, and acquaintances. But the truth is that most of your money usually comes from people that already know you! Don’t be afraid to reach out to your networks when crowdfunding because they’re the ones most likely to support you!
Now that you have a more practical and realistic view of what crowdfunding can help you achieve, let us get you started. You can create a campaign for your organization or cause here.