The 8 Biggest Crowdfunding Mistakes I See

As a creative crowdfunding expert and coach, with over $25,000,000 in campaigns supported under my belt, I can confidently say I’ve seen it all… or close enough. The first most common thing I get asked in onboarding meetings and when I’m speaking on panels is… “what is your best general advice for crowdfunding” (which, said another way, is “what are the biggest misconceptions about crowdfunding?”)?

Since I’ve already answered that question, the next most common question I get is about what the most common crowdfunding mistakes are. Let’s dive in!

Mistake #1: Not having an outreach plan

If you’ve been around these parts a while, this isn’t a mistake you’ll make. I’ve written an entire article about how to schedule an outreach plan, and why it’s so important! But just to say it again for the people in the back: your crowdfunding success has far more to do with your outreach plan and direct messaging than it does with having a good idea.

And your outreach plan needs to be primarily direct, personalized asks, not social media.

Mistake #2: Relying on celebrity shares or press coverage

Whenever I remind people that social media converts 1% into actual contributions, sometimes I’m hit with “well we actually have a celebrity on our team/press lined up for the project, so that 1% is bigger for us than most people.” And that’s true… but it’s also not? Let me explain.

When I pull out the 1% conversion rate stat, one thing that stat assumes is a normal crowdfunding rate of posting- regularly, diversely, over the full course of the campaign. I have yet to see a celebrity who isn’t the primary storyteller (writer/director, or EP/actor) on a project post that much, even if they’ve agreed to help promote and be a part of the project on the other end of the campaign. And a post or two from a celebrity is not enough to hang your whole campaign’s hat on, statistically.

And that’s assuming your celebrity, or press outlet partner, posts at all, let alone with best practices such as leading with the campaign link, using campaign message-tested copy, and using an official piece of key art. The more attention you have on the campaign, the better, absolutely! But if you’re expecting those external partners occasionally resharing things/maybe posting once or twice themselves exclusively via social media to be what moves the needle, you’re in for a rude awakening.

Mistake #3- Relying on name recognition of talent

Worse still, in some cases, is expecting the ability to name-drop alone to be what saves you, even if the person’s name who you’re dropping is only passively included in the crowdfunding process. Perhaps they agreed to do something for one of your incentives, or cameo’d in your pitch video, or are simply already signed on as talent (or elsewhere on the above-the-line team) and have allowed you to use their name in promotional/pitch material.

This is, while not completely meaningless, mostly meaningless. If I gave money to every campaign who told me a person whose name I recognized was involved, I’d be broker than I already am. Because that’s not the stamp of credibility you’re imagining it is, and even if it were, name recognition alone is rarely a deciding factor in a crowdfunding ecosystem (and broader economic reality) like the one we have currently. It’s basically like saying “you should buy this product because it’s painted one of your favorite colors” without actually saying anything about the product. I might be more favorable towards that project because it’s loudly BLUE, but I’ve got limited cash and infinite options… and I’m more likely to pick a product I understand that’s in orange (one of my least favorite colors) than a mystery product in a blue package. Does this metaphor make sense?

Name-dropping alone is not a strategy. You can use it to magnify your strategy, or generate new leads, but it cannot be your entire plan to say someone’s name and use their headshot over and over. Celebrities are more approachable and reachable than ever, and unless you’re promising a semi-affordable way to actually interact with said celebrity, they aren’t going to make a major difference on your success rate at the crowdfunding phase. Distribution/marketing is a different story, when the film exists and can be viewed, but crowdfunding? Absolutely not.

Mistake #4: Overcomplicating things

You could also phrase this mistake as “overworking your audience,” or offering too many choices, which themselves are too complex. If it takes more than a quick sentence or two to describe one of your incentives, back to the drawing board with ye! If it takes someone more than a click and a send of one or two easily accessible digital assets to receive their reward, take out a step or two.

Supporters tend to not want to do extra work after they’ve already given you money, and at that point the best thing you can do to leverage their excitement is to make it super easy for them to share your project far and wide. You can ask for some interaction, but even the most fun ideas that require more than a basic amount of effort will ultimately not net you as much marketing material as you want. Think of it this way: how can you still personalize something even with minimal buy-in on the part of the supporter? Are there ways you can design the offer to make something for them that feels unique and personalized even if they aren’t cooperating up-front on the timeline you need? Those are going to be your more powerful options.

Mistake #5: Under-complicating things

As is often the case, the inverse of a piece of advice is often just as problematic. All things are best in balance. The best example I have of under-complicating a crowdfunding reward, which is where mistakes #4 and #5 are most prominent, is when people offer a digital poster.

As in: a JPEG of their [probably beautiful] film’s poster. Sometimes they’ll even “sign it” [aka layer a transparent PNG of their signature].

Super easy, you don’t have to do any work to deliver it, and it gets imagery about your project out into the world! Win-win-win, right?

Wrong. Once one person claims this reward and shares it, which is your best case scenario for any crowdfunding incentive, everyone they share it with already has it, so there’s no need for more than one person to purchase it. It’s like an NFT… why would I spend unthinkable amounts of money (or even $15) for the same JPEG that you’ve already shown me that I can right click and Save-As? Yes, I’m taking a moment out of my little film crowdfunding advice blog to take a shot across the bow at crypto bros. NFTs are nothing, and you are a fool.

Back on topic, try to design incentives so the sharing of them entices other people to contribute, rather than freeing them of the need to. Think of ways you can personalize each level (even lightly) so it’s clear why someone would contribute at that level on their own.

Also, if you’re flooding the internet with the same single picture over and over again, it loses its effectiveness. Injecting variety, but on a theme/with consistent branding, gives you the same effect of people talking about your work without also training their brain to filter you out. Because it’s always something a little different, a little new, and a lot worth additional effort and attention.

Mistake #6: Conflating supporting you with sacrifice (“skip today’s $6 latte and give that money to me instead!”)

You don’t want your audience to think of supporting your project as a handout. You’re offering them something. They’re paying for a product and an experience. Maybe even a community, or bragging rights. You don’t want to set the tone that supporting your campaign means sacrificing something (like a cup of coffee, for instance). Joining your project is something they do on top of however they typically like to spend their money.

Relatedly, while it’s tempting to list a lower-priced perk with no actual reward now that I’ve taken your little “no coffee today” quip out of your toolbox, it may actually make potential supporters feel ashamed of how little they can give. Even if it’s as simple as a social media shoutout or a personalized digital postcard with your project’s branding, having something concrete attached to every incentive will assuage the fears of folks new to crowdfunding and make them feel like they’re part of the process, which ultimately is the goal. Don’t underestimate how simple yet tangible “perks” can play into the psychology of a supporter- if they get something in return, the value of smaller amounts feels higher.

Mistake #7: No pre-production

A crowdfunding campaign needs to be treated as any other production would be. If you wouldn’t show up to set without a shot list, you shouldn’t show up to the first day of your crowdfunding campaign launch without having done the requisite pre-production.

Lucky for you, I’ve got you covered if you need a guide! I’m also available to help in more personalized ways, if you need an extra pair of hands!

Mistake #8: Vagueness

I understand the impulse to want to protect your artistic IP, I do! But I think more people could benefit from thinking of crowdfunding less like a traditional marketing campaign and a little bit more like discussing an exciting opportunity with a group of potential partners. You don’t need to spoil anything, but if you can’t get specific about why this project, why now, and why you… then you’ve lost the game before you’ve taken your first real swing. There simply must be more information you can give me that doesn’t also spoil the ending/leave you open to get your idea stolen.

But to speak on having your idea stolen for a second… I’m sorry, but your idea is actually not that unique. Ideas are cheap: execution is king. Please be for real that your idea for a movie is not so valuable that to disclose a detail or two will derail your whole career because a villainous producer is stalking the Kickstarter archives seeking IP to pitch instead of coming up with their own.

Don’t take this to mean I think your idea is bad, but as an idea, it doesn’t have a ton of value. What makes your idea valuable is that it’s your idea, and how you and your team are going to bring it to life with your particular style, choices, and expertise. If someone can get famous off your idea without you… first of all, I don’t believe you, but second of all, I guarantee it’s because they already had a version of that idea in their head. And who’s to say that your version of your idea wouldn’t be equally as successful?

So to bring this back to crowdfunding- while details about the project itself are necessary, what’s even more necessary is impuing your audience with the confidence that you are the person to bring this great idea to life. You are the person/team they should trust with their money and attention.

It should be impossible to truly wrestle your idea away from you, because you should be all tangled up in it. They should associate this great idea, and all its little tantalizing details you’ve given them so far, with you, not a great idea in a vacuum. They should understand that the idea is nothing without you. Execution, friends. It’s everything, and anyone who pretends it isn’t is lying to you or misinformed.

Bri Castellini is an independent filmmaker, a romance author, and, regrettably, a podcaster. She’s known for the 2017 short film Ace and Anxious (writer/director, 165k+ views on YouTube) and for her podcasts Burn, Noticed and Breaking Out of Breaking In, covering the USA television show Burn Notice and practical filmmaking advice, respectively. She can lick her elbow (not clickbait). Full work history and ways to hire her as a consultant can be found on her website BriCastellini.com