Four common crowdfunding mistakes and how to avoid them
Crowdfunding campaigns were already growing in popularity before the pandemic, but they’ve gotten an even bigger push in the last couple of years, as nonprofits have of necessity taken a step back from in-person fundraising. Have you tried your luck at this approach? What kind of results did you see from it?
While crowdfunding has a lot of benefits, there are also some common mistakes that might prevent you from maximizing the potential of this format.
So, if you’re running a crowdfunding campaign, here are some things I recommend you keep in mind:
1. Match your content to your viewers
Most campaigns rely on existing supporters to share material on social media, driving up donations by introducing a cause to as many new people as possible. The more attention you can bring to your campaign, the more likely you are to match and exceed your goals.
This means that the materials you create, both for social media and the campaign page, have two jobs. Firstly, they need to hype up the followers you already have. But they also need to pique the interest of outsiders; and then, they turn that brand-new interest into action.
This is a very different process than talking to supporters who are already invested in your work. Content that’s built for new audiences can’t contain too many details; you haven’t yet earned enough loyalty to ask that much of your viewers’ attention spans. It also can’t rely on preexisting knowledge of your organization. Finally, it needs to be exciting, interesting, and relevant enough to break through the apathy and disinterest of strangers.
I know that sounds like a lot of effort. But if you put in the work to connect with people outside your inner circle, you’ll definitely see a much more vibrant response. For those ready to take on the challenge, you might appreciate this list of recommended videos to help you get you started.
2. Be specific
Successful crowdfunding means attracting the interest of a whole new set of people who’ve never interacted with your organization before. But getting their attention is just the first step; if you want to win over a crowd of new donors, you’ll need to earn their trust.
Openness is the simplest and most effective way to get started with this. The more details you can provide, the more they’ll feel that they know who you are and the more comfortable they’ll be committing to a donation.
It’s also a much better way to generate excitement. While it’s nice to talk generally about the work your organization does, it’s hard to get people to buy into something hazy and undefined. The more specific you can be, the better. If you haven’t earmarked the funds for a particular project, at least try to name a few likely destinations for the funds, eliminating ambiguity as much as possible.
3. Stick to the story
On a related note, I’ve seen some campaign pages that had clearly taken material from all over their organization’s website, just throwing together anything that they thought looked impressive or exciting. There were all kinds of videos and copy about various programs, without any unifying goal or story tying them together.
It’s never a good idea to just dump any old content onto your campaign page. No matter how good it is, a jumbled mish-mash will leave your visitors confused and kill the momentum that brought them to the page in the first place.
Come up with a narrative to draw visitors’ in, and stick to it. Less is more when it comes to converting leads – the fewer distractions from the key points you want visitors to focus on, the better.
4. Follow up
One of the biggest advantages of crowdfunding is that it doesn’t just bring in money. It brings in new donors and greatly energizes your existing supporters and volunteers. By bringing everyone together to reach a goal, you create a bonding experience, a sense of belonging, shared responsibility and camaraderie.
These emotions and connections can help you form deeper, more lasting, and more committed relationships with your donors, but only if you lock the feelings into place. That’s why, once the campaign is over, it’s important to reach out to everyone who played a part to let them know that you appreciate the work they did.
This thank-you is more than an expression of gratitude. It’s a formal invitation to see themselves as an invaluable part of your team. After the campaign is over, continue to reach out with updates and greetings, reminding participants of the experience and letting them continue to feel important and involved. These strong donor relationships, which will continue to bear fruit long after the campaign deadline, are even more valuable than all the money you raise.
How about an example?
Take a quick look at this GoFundMe page. As you can see, when three-year-old Eliza O’Neill was diagnosed with a terrible illness, her family started a crowdfunding campaign in response. They’ve now raised millions of dollars in pursuit of finding a cure.
This crowdfunding page definitely ticks one box — specificity. On the foundation website, you can find a whole list of services and projects that they’re involved in; but here, they don’t list anything and everything that sounds impressive about their work. Instead, they stick with the clear, stripped down narrative of how they’ve faced this challenge as a family. They then connect their story with the bigger picture by featuring other families just like theirs.
We know that this simple, emotional appeal was able to connect with new donors and even go viral. Note that their message comes across so clearly in part because there are no tangents or extraneous details. Anyone who visits the page can immediately grasp what the foundation stands for and why their work is important.
As for following up, aside from any interaction they may have with their donors through email, they also post updates on the page, letting those who contributed continue to feel involved.
So, does this give you any ideas for your next campaign? What specific project can you use to rally your donors?