Tuesday, May 8th, 2012 - Ipledg
Why is it that 21% of all projects listed on crowd funding sites around the world never even get off the ground? That is, not even one cent is pledged to their campaign.

On the other hand, 90% of the projects that hit 30% of their target go all the way to meeting and often exceeding their funding target.

But the wide difference between these two scenarios is not down to chance. It is largely due to the attention given to the campaign, not by the crowd, but by the project creator.

Crowd funding is not a money tree, spilling forward foliage of cash that take is just there to be harvested, but the process does have some similarities with the tree analogy. If you plant a seed, you need to tend to it. You have to give it your attention and work it, or it will never bear fruit. The same can be said for any crowd funding campaign.

The biggest mistake project creators make in running crowd funding campaigns is that they do not tend to their campaign. They plant the seed by posting their project, but then sit back and do nothing more, expecting for it to “just happen”. And, as with planting a seed and sitting back waiting for it to just happen, it more than likely doesn’t happen, and neither ever bears fruit.

As the name suggests, crowd funding is funding from the crowd – the crowd around the project creator. The vital key is to engage with that crowd. And nobody has a better connection with the personality and the passion of the audience than the project creator. It is therefore of paramount importance that the project creator drives the funding campaign from before it goes live, through the launch, to the campaign achieving its target and right through to the funding deadline (by which time the funding target can be exceeded, in some cases many times over).

Keep in mind that the main reasons for people pledging support to campaigns are that they know and like the project creator, they share the passion of the project, and they seek the rewards on offer.

The first of these highlights the importance of the project creator engaging with immediate audience of supporters, their family and friends. Approaching them not only is the project creator’s best and perhaps most assured chance of getting support (in a quick manner), but will give the campaign a group of “first followers” to whom other followers will be drawn and feel safe to join. And no one has the ability to engage this close network than the project creator themselves.

Then there is the power of sharing the passion. The crowd will be engaged by a campaign that is appealing, emotive, and delivers a positive outcome. No one is better to deliver the story to the masses than the originator, the project creator. By simply connecting with people through social networks (Facebook, Twitter, etc) the message can be spread. Then by asking those in the network to share the message with those in their networks, the reach of the message is magnified and amplified. And if the project creator is proactive and seeks out groups who share the passion, have similar interests, and work in same or similar spheres, success is all but assured.

The same can be said for the rewards and engaging the crowd that feel motivated by the rewards on offer. Whether the motivation is driven by altruistic reasons (the passion), or the desire for getting their hands on one of the cool, great value rewards, the result will be borne out of just how wide a net can be cast by the project creator.

It is not just a matter of a single shot in the dark. It is not as easy as just getting one post out there and hoping for that to deliver the desired results. After getting close family and friends on board, the crowd needs to be engaged and engaged again to build familiarity and trust. Only then will either pledge their support or spread the word to further networks (or both!).

That said 70% of pledges come from people engaged by the project creator. The remainder comes from people visiting the site and finding a project that takes their fancy, something that touches their soul, or tweaks their desire for the rewards on offer. That is the reason why at iPledg (http://ipledg.com/ ) we have built a broad based platform to bring together a wide community of people interested in helping and in making a difference.

So with a little work, the results of a campaign may not just be fruitful, but be a mountain of fun for the duration of the crowd funding journey.

Contact Profile


iPledg is a crowd funding platform on which those with creative, commercial, charitable, and community endeavours can engage their networks to raise funds for a range of initiatives.

Whilst largely unheard of in Australia, Crowd Funding is the world’s fastest growing form of e-commerce. Since our inception, we have been overwhelmed by the response from governments, universities, industry bodies, companies and individuals who all wish to engage and explore our platform to their benefit.
Bryan Vadas
P: 0414 635 003
W: www.ipledg.com/


Crowd funding, finance, capital, commercial, charity, creative, venture capital, seed capital, loan, invest, netowrk, money, social media, entrepreneur, inventor, dollar, philanthropy, startup



More Formats