5 Dirty Secrets of Crowdfunding
Email Conversions are Low. Even to friends and family, the amount of pledges per email sent is very low. I have heard an estimate from successful campaigns that they experienced 1 pledge for every several hundred emails sent. In my own personal experience, it was 1 per 42 emails sent.
Have you ever considered how emotional attachment to an investment could affect decision-making? Sometimes we may hold onto a worthless investment just because we have a fondness for the company or the memory of why we made the investment. It could be the first piece of stock you ever bought, or the remains of a company you once held dear. Or it could be something odd like stock in the Green Bay Packers.
Myth: Crowdfunding = Magic Bullet
The reality is that crowdfunding works well for those companies that have already built a loyal base of followers! For most start-up companies, crowdfunding is not the first place to look for money. Unless entrepreneurs are ready to make the proper investments in a campaign for a crowdfunding success, it can be a huge waste of time, not to mention an ego deflator when no one visits the site. Crowdfunding IS, however, an excellent way to...
Get an A+ Advisory Board!
Entrepreneurs often fall into the fatal trap of asking the wrong people to be on their advisory board. Entrepreneurship = time strapped. It is easy to scour existing network connections when assembling an advisory board. But that is missing the biggest benefit to assembling an advisory board! Advisory boards are terrific reasons to reach out and engage with people outside of an existing network. Here’s how to get A+ advisors.