Lessons Learned – Successfully Relaunching Crowdfunding Campaigns

In the first part of our blog series on crowdfunding, we discussed how to launch a successful campaign. However, despite hopeful dreams, thorough preparation, and ambitious goals, one must also be aware that around 40% of all submitted projects, almost half, fail. These are not simply immature ideas, unattractive pledges (rewards for supporters), or poor campaign presentations. The reasons are much more diverse, often involving multiple factors and a bit of bad luck.

Some reasons for failed crowdfunding projects:

• Unrealistic and excessively high funding goal
• Poor visual presentation
• Uninteresting pledges that offer no incentive
• Competitors offering a similar product at a lower price
• Insufficient marketing and PR
• Low recognition and no contact with relevant influencers
• Product launch and crowdfunding campaign starting simultaneously
• No active supporters in the critical launch phase
• No communication strategy after launch
• Lack of knowledge about target audiences

One quickly faces a chicken-and-egg problem, as the first days after launch are decisive. There is much debate about what percentage of the campaign needs to be achieved on the first day for the project to remain promising. Figures range from 10% to 25%, but if less than two-thirds of the funding goal has been reached after 10 days, the chances of success progressively worsen, which in turn reduces the investment attractiveness for the crowd.

Eventually, the moment comes when one realises that reaching the funding goal is becoming increasingly distant. Now, there are two options. Either you wait until the campaign expires unfunded and declare crowdfunding a failed endeavour, or you secretly plan a relaunch. The latter requires thorough preparation for it to succeed.

Publish an Update on the Background

Even if a campaign ends, there are supporters who believe in the project, and they should be informed. This is the moment when honesty counts, and you should have reflected on why it failed. More importantly, however, you should communicate what will happen next with the idea – whether there will be a relaunch, if other investors have been found, or if the product itself has evolved. An aborted campaign does not always mean the idea has failed.

Gather Feedback and Seek Partners

If you decide on a second attempt, feedback is crucial. Often, an outside perspective helps identify the deal-breakers. You can simply ask the backers (investors) or contact other successful initiators for tips. At this point, you must not be too proud to admit that you could have done things better or differently. It is also worthwhile to look at other projects. For example, is there a product that perfectly complements your own, or perhaps even extends it? This would be a good opportunity for networking to explore new possibilities, not just due to an increased backer base.

Highlight the Story and Presentation

The relaunch phase is a time when much is questioned, and the 'why' is paramount. Founders tend to pack every piece of information they can find into the campaign. Those who have already been excited by the idea should not have to search again but should see at a glance what has changed. Those seeing the campaign for the first time need a comprehensive overview. Many projects are packed with technical details but fail to get to the point or to evoke emotion. No matter how technically complex a product is, if you want to inspire people, storytelling is a crucial aspect, as this recent U.S. study shows. Products and ideas simply sell better when linked to people, stories, and experiences.

And, of course, the campaign’s design is a primary factor. You can tell at first glance if time, energy, and passion have gone into a project. The more professional the layout, the more willing one is to invest. Those who deliver sloppily may be perceived as untrustworthy and unreliable. It is always worth taking another look at the core elements and scrutinising them: the presentation video and/or the campaign’s cover image. Among hundreds of projects, the campaign image should clearly explain the project, and an emotional video further complements it, drawing attention to the details. On average, videos are clicked thousands of times, and popular projects even more frequently.

Relaunch Promptly and Link to the New Campaign

Strike while the iron is hot, as the popular saying goes, and this applies particularly to crowdfunding. Therefore, no more than four weeks should pass between the old and new campaigns; this is enough time to re-evaluate and implement improvements, but not long enough to be forgotten again.

If done correctly, all multipliers would have been activated at the start of the first campaign, and there may have already been initial media reports. To guide interested parties to the new campaign, it is advisable to simply embed a very prominent button with a link to the new campaign on the old campaign page, which then redirects upon launch. This prevents already shared links from disappearing into oblivion and avoids frustration due to people having to search tediously. But beware: This should absolutely be done before the campaign is prematurely ended; after that, no further changes are possible, only the publication of comments, updates, and communication via messages.

Successful Initial Phase

And if all this has been heeded, then you can press the button again and go live. After the successful launch, there are many ways to activate existing backers. On the one hand, you can send a message to everyone who has already supported the project, referring them to the new campaign. On the other hand, you can offer special rewards (e.g., with a discount). This shows appreciation for the early supporters and definitely helps recapture attention. It goes without saying that friends, family, and business partners should also be informed via social networks, newsletters, the website, and in person.