Choosing a crowdfunding platform takes time. You should familiarize yourself with the platforms that are out there (yes there are more than three) and what they offer.
Lets look at the factors you should consider in your search for a platform.
Differences Between Platforms
First of all, it is best to choose a platform that caters to the type of project/field you are in. These sites are built specifically for your purpose, not for anything else. If you want crowdfunding in real estate, why go to Indiegogo?
Some platforms only offer All Or Nothing campaigns, which will not help your project unless the entire monetary goal is met. You need to think about this ahead of time.
Some offer Keep It All campaigns. If you are offering rewards such as the product you are building, or even smaller rewards like thank you gifts, you have to be sure you raise enough money to cover these.
Will a platform do all the work for you while you sit back and collect money? Simply, no. In the end, you are going to be the one driving traffic to your campaign page, whether its by spreading the word to your network, using ads, giving interviews, or building your own email list. You may get help from a crowdfunding platform once you reach a certain popularity, but this again means overcoming competition and promoting on your own.
On any platform, each day your campaign runs as well as weeks before the campaign should be well planned and busy times for you.
Be careful with platforms that promote/ feature certain campaigns based on potential payback. Here on Techmoola we do not believe in such selectivity, giving everyone an equal chance.
Large Platforms: Pros and Cons
As tempting as it may be to choose the largest platform with millions of users creating and seeing campaigns, consider some of the downsides:
-Competition for funders in each product category- If you are one of the fifty 3d printer campaigns, it will be more difficult for you to secure funds.
-Competition for funding in general- Some platforms have become like stores with thousands of “products”. One is easily distracted by other projects and other categories when choosing where to invest.
-Competing with professional campaigns- Crowdfunding has become big business and platforms these days are dominated by campaigns organized by companies. This means thousands of dollars spent on cinematic project videos, actors, PR agencies, press, consultants, etc.
-Companies use crowdfunding campaigns as a form of marketing because of their cost compared to traditional marketing- you have to compete with these.
-Campaign failure rate- Ever wonder why crowdfunding platforms do not list past campaigns or only show those that earned the most? The fact is most campaigns fail.