Updated: Oct 15
It's safe to say that crowdfunding has taken the world by storm. In the past decade, we've seen platforms like Kickstarter and Indiegogo completely change the way that people raise money for their projects. But is crowdfunding finished? Is it on its way out?
There's no denying that crowdfunding has been incredibly successful. We've seen people raise millions of dollars for everything from new businesses to charitable causes. But there are some signs that crowdfunding may be reaching its peak. For one thing, there's a lot more competition now than there was when Kickstarter first launched in 2009. There are now dozens of crowdfunding platforms to choose from, and not all of them are created equal.
Another problem is that people are becoming more skeptical of crowdfunding campaigns. With so many scams and failed projects out there, it's getting harder to convince people to part with their hard-earned money.
Even though crowdfunding may have lost some of its luster, it's still a great way to raise money and gather valuable product feedback.
Just take a look at Brandon Sanderson's recent Kickstarter that raised more than $41 million! Obviously, it can still be done.. but how?
There are a few things you need to keep in mind if you're thinking about crowdfunding. First, you need to have a great project or product that people will want to support. Secondly, you need to create a compelling campaign that will get people interested in what you're doing. You need to make sure you're using the right platform to reach your target audience. And lastly, you need to run ads as soon as possible.
Ads are a great measuring tool. People either like them or not which gives you a clear picture of your chances at success. If many people engage with the ad (and through this also with your project) and are willing to e.g. sign up to a newsletter then you know you're on the right track. However, if no one engages with several ads promoting your project, it might be time to tweak your project or messaging.
We find that most people who fail to do so because they've been working on a project in complete isolation. They didn't show it to friends and family, they didn't post about it online in relevant communities and they definitely didn't do ads to see whether cold acquisition was even possible.
It's not so much the fact that crowdfunding is over, it's more a matter of having to be extremely well-prepared & starting with a budget (ads aint cheap!).