Why Crowdfunding Doesn’t Work

Crowdfunding is a risk free way for creatives, communities and entrepreneurs looking to fund their project. A well run crowdfunding campaign can take an idea and turn it into a reality, yet crowdfunding may seem easy but there are some considerations to take on-board before starting. When a crowdfunding campaign fails, many business owners or project creators often wonder what went wrong.  This blog takes you through some of the common pitfalls.

 Crowdfunding

So why doesn’t crowdfunding work? Or, for better words, when crowdfunding doesn’t work, what happened? Below are some of the reasons crowdfunding doesn’t work and how LiveTree’s improved version of the typical crowdfunding platform can work for your business. LiveTree offers the best crowdfunding solutions for your project and can create successful crowdfunding campaigns for any project.

Define your crowd

The reason crowdfunding often doesn’t work is often due to weak marketing strategies (which can kill your crowdfunding project) and failure to define their crowd in order to get the right funding, recognition and opportunities. You need to consider who would be interested in your project and, more importantly, who would be willing to financially invest in your project. Defining your target crowd/audience defines who would be willing to back you financially or be interested in promoting your story. Consider the themes driving your project: Are there online forums, groups, location suppliers, or businesses relevant to your film? Could you reach out to those people? Are there bloggers or journalists that would be interested in telling your story?

While developing your career it’s important to have a good slate and a crowd that supports you. When you have a crowd, it makes it much easier for us to market you to raise more funding and introduce you to relevant partners like BFI.NETWORKS, Film London, RedRock Entertainment or any of our relevant partners. LiveTree is here to get you funded and develop your career.

What the industry needs

The industry needs a different kind of crowdfunding platform which focuses on the success of their campaign creators and can provide them with the kind of features they won’t find anywhere else. With many crowdfunding platforms, project creators are offered a crowdfunding platform and little else. Project creators need resources they can use to help build their businesses and grow their crowdfunding efforts. Features including videographers and legal advice, as well as other tools project creators need should be included in a convenient online directory.

Business owners know that it is good business to align themselves with non-profits and other charities. With existing crowdfunding platforms, there isn’t a non-profit element and that is something that can often add value to a crowdfunding project. Project creators need all of these features and more if they are going to succeed.

This is where LiveTree comes in. LiveTree understands that the non-profit/charitable organization element can help influence others to help promote a crowdfunding project, making it that much more successful and effective. LiveTree also offers a wide range of useful tools and resources that can help give projects the momentum they need to succeed.

Another advantage that LiveTree has over any other crowdfunding platforms is a sense of community. LiveTree has built their online community by focusing on both sides of the crowdfunding project and offering backers a financial incentive for promoting crowdfunded projects. LiveTree offers no hassle crowdfunding that will ensure your project’s success.

Why Should You Choose LiveTree?

If you are serious about growing or expanding your business, making your startup succeed and creating a successful and effective crowdfunding project, choosing LiveTree is an important start. LiveTree goes beyond being just a transactional marketplace and focuses on the success of project creators and offers the best crowdfunding solutions in the industry. This ensures that business owners can get the financing they need for their projects while helping others succeed in their crowdfunding projects as well.

Contact LiveTree Now to Get Started

The next time you are considering a crowdfunding project for your business startup or expansion, choose LiveTree and avoid the above reasons many crowdfunding campaigns fail. Contact a LiveTree professional now and let us create a successful crowdfunding campaign for you today!

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GoFundMe Vs LiveTree – A Comparison

Your aim when launching a project in this manner is to use the best platform to get the most out what you have to work with. When comparing what you’re getting between GoFundMe and LiveTree, the winner is clear. At first, GoFundMe seems to be very user-friendly, much more so than Kickstarter; like LiveTree, GoFundMe will allow you to withdraw at any point and you can keep everything whether you reach your goal or not.

But is that enough really? Are they really making it worth your while, since they’re giving you cash from your own friends, and keeping a big section for themselves? Let the showdown begin. With GoFundMe, can you;

  1. Reach a Wider Audience?

With GoFundMe, you rely on the people in your life you could easily just approach in person. Then, if they really like you, they ask their friends to support you. I know what you’re thinking; why paying 8% of my earning to GoFundMe in that case? If not, then you should be.

  1. Reward and Incentivise Your Network to Expand Your Exposure?

GoFundMe do not connect you with potential donors, nor do they expose your project in any manner other than to use the network you already have. They having nothing resembling LiveTree’s Branching concept, which encourages other LiveTree users and social media users to spread their story and promises them commission for doing so. It’s a win-win situation in which everyone is helping everyone out, yet we don’t charge the exorbitant processing fees that GoFundMe do.

  1. Make the World a Better Place?

Following our vision firmly rooted in bringing the community together, following the theme of everyone helping out, LiveTree associate ourselves with various charities and offer you the chance to donate portions of your earnings to these worthy causes. Not only does this help extend your network it helps you give back to the community which you are asking to help you. Branchers who help you spread the word are also further encouraged to get involved, knowing that while everyone is earning commission, they are also doing something good for the world. Charities LiveTree have aligned with include Doctors of the World, Hope for Children and Youth Music.

  1. Get Continued Support, Expert Advice, and Global Exposure?

LiveTree gives that and so much more. While GoFundMe states that “Once your campaign begins to really pick up steam, our team may contact you,” the truth is that these is no personal connection to you whatsoever. LiveTree is unique in this aspect, in that we offer consistent support from your own dedicated Support Analyst from the moment your project takes off until it reaches its successful completion and beyond that – all at no extra cost to you.

So what are you waiting for?

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