From almost any standpoint, crowdfunding is one of the most misunderstood subjects in modern history, if people know what it is at all. Far too many people approach crowdfunding with the mentality of a prospector off to the gold mine to make their fortune; they operate under the mistaken notion that all they need to do launch their campaign and immediately start raising money day and night.
Just a few of the many subsets of this thinking include:
- My product is epic. People are going to find my project, love the perks and back my campaign to get one.
- My idea is brilliant. I don’t have the money to produce a prototype or anything else so I’ll crowdfund.
- I can make a lot of money with crowdfunding. I’ll slap up a campaign, pay nothing out of pocket and if I rake it in then great! And if I don’t, who cares?
Nobody should be surprised by the fact these campaigns fail every time. The primary reason why crowdfunding failure rates are notoriously high becomes clear; too many campaigns never get the resources they need to succeed. The project launches, the crowdfunder sits back and waits for the money to roll in and doesn’t lift a finger or make any attempt or effort of any kind to get their project off the ground. From there the campaign dies a slow death day by day until the project deadline. read more below.