While we wish every great idea that turns to crowdfundng reaches it’s target, the reality is that you probably won’t hit your target. On kickstarter it’s only around 40% of projects that become fully funded and on Indiegogo the rate goes down to only 13.68%! (on the flexible funding option)
In our experience the key factor has been peoples lack of capacity. They simply don’t have the man power to have at least three people or around 15 hours to devote to working on the campaign every single day. Crowdfunding is not a last minute ditch to make some quick cash. It all comes down to your level of preparation, 3-4 months should put you in the right frame. During that time try and increase your social media presence but make sure it’s an engaged following where people and chatting, commenting and liking.
So here are some tips.
On launch day already have 10%.
2/3 of the way in have something new to say/ new angle
Your rewards have to entice and be worth the value your putting on them as well as relevant and of course fun names help!
Have a capacity of at least 15 hours per day to spend on the Crowdfund
In the articles I’ve linked to below they contribute the success to;
- making sure you have a video- people like to see who’s behind the great idea for trust and reassurance
- Your social media presence pre launch- they showed that the number of your facebook friends is related to the success rates
- To try and get featured on the homepage- though this is pretty much up to the platform to decide
- Setting your campaign to be 30 days not 60- You’ll get tired and bored just like your fans/customers
For more stats head to http://www.indiewire.com/article/indiewire-compares-crowdfunding-platform-success-rates or http://www.appsblogger.com/behind-kickstarter-crowdfunding-stats/ .
When you “don’t know what to do”, you seek information. Then you may know what to do, but the danger is you don’t do it. So, what we want to focus on is the WHEN to do it” because this helps you to avoid procrastination. The infuriating “should I” “could I” thoughts that take over your mental processes and permit you to rationalise your procrastination, delay your action to accomplish your goal.
If you check out the timeline at the bottom of the page you’ll see what you do in different stages of a crowdfund, from the pre-planning, all the way till after the crowdfund. We find this helpful when helping to coordinate successful campaigns. The colour differentiates the different stages, the upper block that runs consistently throughout is your engagement – We see honest engagement with your audience and networks as a core to sustainable enterprise development.
We have assumed that in the initial strategic planning stage you have already vetted your project/ idea as a good Crowdfunding opportunity (if you don’t know, ask us as we can help you to assess the feasibility of your project). Each stage prior to the crowdfunding is extensive in itself and deserves full attention to detail.
In summary, use this timeline to assess where you are in your process and what you need to do to get to the next stage. If you need any help, get in touch.
In crowdfunding and engagement campaigns this ‘calm’ isn’t so tantalising. We can’t stress more about our shiver of concern with regards to the pro-active and enthusiastic crowdfunder who only focuses on the things they’ll need for their profile page. He makes a compelling video, has a fair product and writes about his vision, and does a little due diligence in choosing an appropriate platform. Hastily, he jumps on, uploads, and sits on the edge of his seat and waits. With his fingers crossed, he envisions the success and the potential of the next 8 weeks of his campaign. However often, at this point nothing happens.
SoLoCo, was originally a crowdfunding platform, and we have seen this happen often! SO – why does it happen and what are things you can do to prevent it?
Is it a bad project? A lack of passion? One thing for sure is it’s not pessimism. One P-word to address today is the ‘Pre’. The Pre is for that meticulous part before the crowdfund. Assuming that all variables are fair; project, personality, vision, etc. The campaign should unfold to be a success; however, as ever your preparation and a well thought-out strategy is huge and will enable you to really launch your project with the momentum necessary to achieve your goal. In a well thought-out marketing strategy for crowdfunding there is always one primary emphasis – how and who can you engage with.
If you are curious or pro-active about doing this, then start by grabbing a sheet of paper and brainstorming all the contacts that you know. This means; business contacts, twitter followers, friends, family, friends of friends, linked-In members, associations you’re part of, etc; all folks that might be interested or that can help out; anybody who you know who is influential. These fundamental networks will be the foundation to the success of your project, they will stimulate the momentum and the seemingly ‘big hit’ effect that will trigger the followers to reach out after the crowdfund is launched. Remember people don’t just jump on a platform with £20 and think who am I going to help out today. So you want to aim to have a fifth or even a quarter of your goal already donated before the campaign is launched – that way, when it is launched people are drawn to your immediate success. After all, people want to be part of the next big thing, right?
I certainly am filling large shoes talking about this subject. I know there is already a tonne of information about which crowdfunding platforms to use and the differences in their perks.
Envisioning how you’re going to attract your early adopters, that stage of raising capital and literally bursting into the live .com stage is often quite a daunting and exhilarating thought, wouldn’t you say?
Despite the whole crowdfunding topic becoming quite a saturated space online, today I want to raise a couple of thoughts. Things to consider when it comes to YOU and the “Platform Choosing Time”. We all know that there are a dozen plus platforms available. Each platform provides a slightly different reach, has a couple of percentage points different with regards to the fee for hosting, and hosts for community specific genres and locations.
Dealing with numerous clients, this is always an interesting topic of conversation. We advise you to assess your choice through the segmentation of your audience; demographically, geographically and through your audiences values, ie. Where they’re based, what they believe in and things like they’re income, nationalities, gender and age – Think, what kind of person uses my product/ service?
Consider this; your value proposition is for your audience so it makes total sense to position yourself most visibly in all aspects or your segmentation. Secondly consider the purpose of your crowdfund – Are you looking to raise money through sharing equity or aim to raise money through donations or is your business considering the crowdfunding model purely for an engagement campaign?
We’ve made a Segmentation takeaway for you to jot some notes and thoughts down to help you decide which platform is best for you.
Here are some crowdfunding platforms that you may want to consider;
People fund it
OR your own technology! (get in touch if you want to find out more about this)