Take my word for it! Insights for innovators and backers in navigating reward crowdfunding
In the dynamic landscape of reward crowdfunding, the bridge between innovative ideas and their fruition lies not just in the uniqueness of these ideas but significantly in the confidence and assurance they project. Our research dives deep into how projected certainty signaling—expressing confidence through project descriptions—affects the success of crowdfunding campaigns. This insight sheds light on a pivotal yet nuanced aspect of crowdfunding dynamics: the curvilinear relationship between the level of certainty conveyed and the project's success rate.
The Significance of Projected Certainty
Our findings unveil a fascinating paradox in the realm of crowdfunding: while a moderate level of certainty boosts a project's appeal and backer confidence, too much of it can push backers away. When projects signal certainty too strongly, backers might see this as overconfidence or exaggeration intended to hide potential flaws. This can lead to negative reactions towards the project, as backers become wary of risks and doubtful about its promises.
Finding the right level of certainty is therefore key. The importance of using certainty signals in projects descriptions can be facilitated through aligning certainty project in founder communications with backers’ expectation (certainty alignment). This allows balance not only attracts backers but also aligns their expectations, fostering a symbiotic relationship pivotal for crowdfunding success.
The Role of Certainty Alignment
Diving deeper, the concept of certainty alignment—ensuring the founder's projected certainty resonates with backers' expectations—stands out as a cornerstone for achieving crowdfunding success. Certainty alignment emphasizes the value of effective interaction between founders and backers. By harmonizing certainty levels, it lays a strong foundation of trust and mutual understanding, greatly increasing the chances of a project's success.
Insights for Crowdfunding Success
Our study serves as a beacon for founders and backers navigating the crowdfunding arena. For founders, it underscores the importance of finely tuning their certainty signals to strike the right chord with potential backers. Even so, founders should actively respond to backers' comments, boosting transparency and showcasing the sincerity and integrity of their projects to attract potential backers.
Backers, on the other hand, should actively seek out information and ask for clarifications, with the aim of finding projects where the certainty projection resonates with their expectations, enhancing the fulfillment derived from their contributions.
For Whom Does This Matter?
Our study results have implications for not just entrepreneurs and innovators stepping into the crowdfunding domain but also for businesses and individuals looking to invest in projects with confidence. Beyond the business context, our insights extend to anyone involved in organizing societal ventures, including NGOs and educational initiatives, underscoring the universal applicability of certainty alignment in fostering successful outcomes.
For a deeper dive into the mechanisms of projected certainty signaling and its impact on crowdfunding success, we invite you to access the full research here published in the Journal of Business Venturing Insights.
About the Authors
Bright Frimpong, Fatima Mohammed, Keri M. Larson, and Henry Anderson Junior bring together a wealth of knowledge from the fields of Business Administration, Information Systems, and Data Science. Their collaborative effort provides a fresh perspective on the dynamics of crowdfunding, offering valuable insights for both practitioners and scholars.