A crowdfunding campaign can make or break your start-up. In other words, a successful online fundraising initiative would help you raise capital fast, boost brand awareness and form a solid community of fans and followers.
On the other hand, a crowdfunding campaign gone badly would inevitably discourage you and stain your reputation. But is it really all black and white, when it comes to Internet-based fundraising strategies? Could you actually turn the odds in your favor? You could, by learning how to anticipate and reduce the risks associated with your future crowdfunding campaign.
- See How You Can Protect Your Intellectual Property
Intellectual theft is one of the most common threats that could easily compromise the efforts of entrepreneurs who rely on crowdfunding platforms to fund their latest concepts. Always remember that the first one to file a patent is considered the owner of the invention.
In this context, do whatever it takes to protect your trade secret from the prying eyes of your competitors. File a patent and never disclose some of the most important details related to the unique attributes of your newest product or service.
- Protect Your Ownership of all Comments and Materials Published by Visitors
In some cases, your followers could provide useful suggestions that may lead to much-needed improvements in the long run. The question is this: do you actually own the materials submitted by all users, related to your project? It depends.
Some platforms, like Indiegogo for instance, highlight the fact that all submitted elements are the intellectual property of the creative minds who have designed and implemented the crowdfunding campaign.
At the same time, other platforms, like Kickstarter for instance, do not shed some light on this matter and leave the door open for potential PR problems, litigations and protests. Great advice coming from savvy users can be a gold mine for young entrepreneurs; therefore it is advisable to go in favor of a crowdfunding environment allowing you to protect your ownership of all the materials posted by commenters.
- Always Keep Your Promises
Sometimes, the greatest challenge is to keep you promises. Entrepreneurs who are dealing with severe financial difficulties may have a hard time trying to order and deliver the promised perks. If you are in this situation, bend over backwards to honor your obligations. Otherwise, you would inevitably become a pariah in the vast crowdfunding community.
Moreover, in most cases you would also expose yourself to legal liabilities; needless to say that your reputation and your credibility would inevitably be compromised. To avoid considerable risks, set attainable crowdfunding goals and tempt your backers with rewards that you actually afford to produce and send.
Ask an Expert
Are you worried that the main risks associated with online fundraising initiatives could compromise your efforts? In this case, eliminate your fear and doubts by consulting L&C Media Buzz, your respectable crowdfunding and consulting expert. Just give us a call and we’ll come up with the best method to overcome all your crowdfunding challenges.
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