Crowdfunding Videos Backer Psychology and Conversion 2 — Questions and Answers
Question 1: What is 'loss aversion' and how should a crowdfunding video script address it?
- The tendency for backers to avoid campaigns that have lost previous funding rounds
- People's tendency to prefer avoiding losses over acquiring equivalent gains; scripts should frame backing as preventing missing out (Correct answer)
- Loss aversion only affects institutional investors and not individual backers
- It means backers want refund guarantees written into the video script
Correct answer: People's tendency to prefer avoiding losses over acquiring equivalent gains; scripts should frame backing as preventing missing out
Framing backing as 'don't miss this opportunity' or 'limited early-bird tier ending soon' speaks to the loss-averse side of human psychology.
Question 2: Why is it effective to show the 'before and after' scenario in a crowdfunding video?
- Before/after visuals meet Indiegogo's mandatory content requirements
- It makes the product's value tangible by contrasting the problem (before) with the improved life after using the product (Correct answer)
- Before/after shots reduce total production time
- It is the only format that qualifies for Kickstarter's staff picks
Correct answer: It makes the product's value tangible by contrasting the problem (before) with the improved life after using the product
The contrast between current pain and future improvement emotionally motivates viewers to want to be the person in the 'after' scenario.
Question 3: What does 'cognitive ease' mean and how does a simple, clear crowdfunding video script benefit from it?
- Cognitive ease is a video compression technique that reduces viewer data usage
- When information is easy to process, people judge it more positively and are more likely to act on it (Correct answer)
- Cognitive ease is the legal principle that simple contracts are binding
- Easy cognitive load means viewers spend less time on the campaign page
Correct answer: When information is easy to process, people judge it more positively and are more likely to act on it
A script free of jargon and confusion reduces mental effort for viewers, making the offer feel trustworthy and the decision to back feel safe.
Question 4: What role does 'trust' play in a backer's decision to fund a crowdfunding campaign after watching the video?
- Trust is irrelevant — backers only evaluate product features
- Trust is the primary emotional factor; backers are essentially lending money to a stranger and must believe the creator can and will deliver (Correct answer)
- Trust is established solely by the campaign's funding total
- Trust only matters for equity crowdfunding, not reward-based campaigns
Correct answer: Trust is the primary emotional factor; backers are essentially lending money to a stranger and must believe the creator can and will deliver
Because backers receive nothing immediately and are relying on a promise, trust in the creator's competence and honesty is the core conversion driver.
Question 5: How can displaying 'backer count' prominently in a crowdfunding video update boost conversions?
- It reduces the video's file size
- A large backer count acts as social proof, signaling that the project is validated and worth the risk (Correct answer)
- Backer counts trigger automatic matching from institutional funders
- It satisfies the platform's transparency reporting requirement
Correct answer: A large backer count acts as social proof, signaling that the project is validated and worth the risk
Seeing that thousands of others have pledged reduces perceived risk for undecided visitors by confirming the project has broad community support.
Question 6: What is 'narrative transportation' and why is it valuable in crowdfunding video storytelling?
- The process of shipping physical products to backers after a campaign ends
- A psychological state where viewers become so absorbed in a story that they lower their critical defenses and are more open to persuasion (Correct answer)
- The act of transporting filming equipment to a production location
- A copyright term for moving story content between video platforms
Correct answer: A psychological state where viewers become so absorbed in a story that they lower their critical defenses and are more open to persuasion
When viewers are emotionally absorbed in a compelling story, they are less likely to scrutinize the pitch logically and more likely to act on emotion.
Crowdfunding Videos Backer Psychology and Conversion 2
What is 'loss aversion' and how should a crowdfunding video script address it?