As you now know, our recent crowdfunding campaign for BLÜME did not generate the money we needed in order to go into manufacturing immediately. Unfortunately, that is the case for the majority of new products that enter this type of funding campaign – only approximately 30% of Indiegogo and Kickstarter campaigns are successful at the end of their runs.
Looking at that statistic, you might be asking yourself, “why would anyone try crowdfunding if the odds are so low?” While there are many reasons why a crowdfunding campaign may not meet its goal, there are also many reasons why going after one is a great idea.
Why crowdfunding is risky
- It benefits the masses
The projects that raise the most funds through crowdfunding campaigns are typically products or services that are made for the general public. Something like BLÜME, while it is technologically advanced and solves a major humidification problem, benefits a niche group: cigar smokers. This means that the average Indiegogo user that likes to scroll through the pages to see the latest and greatest in gadgets, is more than likely not a cigar enthusiast, and so may pass over BLÜME and move on to something that relates to them directly.
- Timing is everything
After more than a year of planning and developing our product, we were so excited to start promoting and funding it. The timing made sense for us, as a business, but the time leading up to the holiday season has a lot of people using their money to purchase gifts for the loved ones on their lists who may not necessarily be cigar smokers.
Why we tried it anyway
- We’re up against giants
In an industry dominated by big brands loved by cigar enthusiasts the world over, it’s difficult to prove yourself among the giants. We viewed crowdfunding as a way to reach out to our audience in a more personal way and to gain grassroots commitment from cigar lovers who are willing to help out the disruptor in a traditional industry. We think that our campaign, along with our social media presence, did a good job of reaching out to these people (you!), which is a win we’ll take away.
- We wanted a sense of market interest
One of the biggest reasons for crowdfunding for any brand, other than raising capital, is to see what kind of market interest is out there for your product. While we didn’t raise our goal amount, we did see some amazing interest from the community, both backers and non-backers. This is what has led to our decision to push forward with the next plan for getting BLÜME manufactured – we know it’s something people want and need.
- We needed to generate awareness
Our crowdfunding campaign on Indiegogo did, if anything, give us a platform to get to know you. Through comments we received on our posts, emails, and survey responses, we learned so much about you guys and what you care about most when it comes to your cigars. Without our crowdfunding campaign, we certainly wouldn’t have had the chance to become so engaged with our followers. That being said, we’re not going anywhere now that our campaign has closed, so keep up with us online through email and social media!