A common rule in crowdfunding is to put a time limit on campaigns — usually a few weeks.
There is no logic to this rule except for the sense of urgency it allegedly stimulates. Yet this is a primary reason why the majority of campaigns fail.
Almost all crowdfunding campaigns are launched by people with no prior experience, so the process involves, by definition, a steep learning curve.
Time-limited crowdfunding platforms undermine their very purpose by cutting off campaigns at precisely the time when initiators are gaining their footing, learning the basics of user-acquisition, conventional and social media relations, customer service, retention and vertical cultivation. Time-limiting rules are among the crowdfunding mega-sites’ most detrimental features.
What is so infuriating is that they are simply arbitrary. It’s as though an all-powerful gym teacher is standing with a stop-watch telling grown entrepreneurs when they can go and when they have to stop. It’s degrading, self-defeating and entirely unnecessary.
Time limits are one of the major reasons why well more than half of all crowdfunding campaigns end in failure. Yet crowdfunding mega-sites insist time limits are necessary and good.
How long are consumers (that is, campaigns) going to put up with being told how to run their affairs?
Until something better comes along and no longer.
Continue reading our series on the crowdfunding crisis to find out more about the future of this massive phenomenon.