Even the most technology and business savvy of us usually have trouble seeing and appreciating anything past the sleek interfaces of our favourite web services. These web pages are usually nothing but a small representation of the amount of effort, vision and persistence that goes into bringing these projects to life. Such was the case when crowdfunding started gaining popularity the world over and several enterprising locals who wanted to help their countrymen board this bandwagon built their own crowdfunding platforms. The idea looks simple and brilliant on paper: you let people contribute small amounts of money which they will not lose any sleep over and combine that with the almost unlimited reach of the internet. Like most hastily copied internet business models, the majority of these platforms failed to live up to their creators’ expectations.

For a while crowdfunding appeared to be dead in our little corner of Africa until it resurfaced with renewed vigour as people started building entrepreneurial communities on social media. While the smaller funding campaigns that are launched in these communities fare better than their more ambitious internet platform counterparts, most can barely even raise the small amounts of capital required to finance a one-person business. In fact, as incomes get devalued the general sentiments around crowdfunding campaigns do not appear to bode well for its future. While it may be easier to use the failure of these campaigns (particularly those meant to raise funds for collective business ventures) as an excuse to launch into a philosophical think piece about the psychology of Zimbabweans, it makes more sense to discuss how we can solve the overarching cause for the poor performance of most of these campaigns: lack of trust.

Projects need clear leaders and owners

Some people want to do more than raise funds during crowdfunding campaigns; they also want these same funders to join and help them bring these project ideas to life. Unfortunately doing this will discourage a lot of people who would otherwise have been willing to contribute financially but are unwilling to take on the extra responsibility of helping run a business.

While online communities work as excellent sources of ideas, support and inspiration, actual business projects need leaders. Seeking help at the same time as you are raising funds signals that not only has the campaigner not done his or her homework but that they also lack confidence in their own ability to successfully start and run the project. However honest this may be, it discourages financial contributions and invites advice and suggestions instead.

Without a clear vision spearheaded by a committed team, your project proposal is more likely to get turned into a protracted group discussion with no tangible results at the end of the day. Do all of your homework beforehand and then present your final findings and ideas to your potential funders. Invite questions and answer where you can. Again, try not to mix asking for ideas and suggestions with asking for monetary contributions, as you are likely to get plenty of the former at the expense of the latter.

Sell your vision

Many people who try to crowdfund their projects make the mistaken assumption that a single tweet-length description of their project is enough to convince potential funders. Unfortunately, the little amount of effort you put into outlining your project may give the impression that you put an equally limited amount of thought into it. Even though you may feel like it is obvious how and why contributors would benefit from your project, it is still your job to sell the idea to them. You should also try to pitch to your masses of potential funders as you would to full-fledged investors. Address any of their concerns and convince them why they should fund your project. Share your market research with them if you have to. If you are overly concerned about your business ideas getting stolen then crowdfunding may not be for you.

Work in familiar territory

The internet and money transfer services have opened up a lot of opportunities for criminals. This has resulted in people being almost always suspicious when they are online especially where money is involved. To avoid getting mistaken for an internet scammer try to stay respectful and professional whenever you are presenting your campaigns.

There is no faster way to doom your campaign than spamming and aggressively badgering everyone about it. If you are trying to fundraise through online communities, limit your fundraising activities to those communities in which you have been a member for some time. Hopefully the rapport you would have built with other members will allow them to appreciate your project without you getting mistaken for a scammer.

Share your progress

If you raise your money from a large number of people it is unrealistic for you to be answerable to each and every one of them. Instead, the only way you can be ‘monitored’ is if you voluntarily share details about your project’s progression. This will reassure your funders that their money is being put to good use and will increase the chances of success of any of your future fundraising campaigns.

Use a trusted third party to conduct due diligence on behalf of funders

In the face of the impossibility of addressing the various different concerns of a multitude of individuals, these online communities and platforms may use a single party which can conduct all the necessary due diligence on behalf of potential funders. This will prevent the proliferation of shady campaigns that may end up discrediting crowdfunding on that particular platform or community.

If your crowdfunding efforts fail, resist the urge to launch into an angry tirade about the selfishness and lack of unity of the people whom you wanted funding from. You should instead take a more sober look and try to find causes for the failure which you can actually solve.