Crowdfunding and why it fails

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Crowdfunding has enabled talented and innovative people to achieve their dreams and yet contribute to the needs of modern society. Many people have not experienced the much talked about crowdfunding benefits and objectives. The reason behind inability to meet crowdfunding goals are not because there are no benefits to reap from crowdfunding. The reasons behind many failed crowdfunding projects are related mainly to the fact that the both the crowdfunder and the backers have not paid the price of learning to understand the dynamics of each campaign project before embarking on it.

When anything goes wrong a crowdfunding campaign, it affects a great many people including the people that backed the campaign. There is also an opportunity cost of not investing the time, energy and money to other deserving activities. It is not only the crowdfunder that has the responsibility to to learn about crowdfunding, the backers should owes themselves and humanity a responsibility to understand the dynamics of each campaign before getting involved.

The backers should learn and understand the concept of crowdfunding and how it relates to any campaign of interest. Every campaign has its logistics and backers should try and understand the logistics behind each campaign project. Backers ought to educate themselves with the realities of a project, so that they can make informed decision. If backers make good decision, it could save both the crowdfunder and the backer from investing in a non realistic project. In a technology project for example, backers need to ask questions to determine if the underlying softwares and hardwares will still be able available by the time the product will be ready for the market.

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Even where the softwares and the hardwares are are still available, will their version be able to keep supporting the application? What about the time it takes to complete the project? Some campaigns have failed not because the idea project is bad, but they failed because the timetable was overly optimistic. Overly optimistic timetable is not be an indication of bad planning, it could just be an issue of over enthusiasm.

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