Our crowdfunding calculator explained.
Crowdfunding Calculator Funding Goal
– Nowadays, entrepreneurs can raise capital from the public and test their products with an array of audiences through crowdfunding. But, less than half of all campaigns end up reaching their crowdfunding goals; many fail because the money they raise isn’t enough to cover the business’s expenses. Indiegogo campaigns have a 9% success rate, while Kickstarter’s have a 36% success rate.
Crowdfunding Calculator Promotional budget
– the days of easy success on Indiegogo and Kickstarter are over. Today, if you want to succeed in your business endeavors, it’s vital you have a solid marketing plan in place – and the money to back it up.
One really important factor to note is that to reach your $100,000 goal, you must inject around $35,000 into advertising to hit your crowdfunding goal.Maybe you only have access to ‘cheaper’ customers at the moment. Maybe you already have an existing mailing list. You may even opt to use influencers to help with your crowdfunding campaign or choose to co-market your products online. Some businesses even convince journalists to write about their campaigns, so they get more publicity.
Whatever you do, you must never assume your crowdfunding campaign will drive itself to success. It doesn’t work like that. It’s almost similar to listing a new product on your site and hoping your target audience – who don’t even know about your brand – will somehow find and purchase your product.
Crowdfunding Calculator Active On Social Media
– a business’s ability to tap into the social web and effect a successful crowdfunding campaign is one of the most powerful strategies you can use. This is usually possible through the traditional methods of reaching out to investors. When applied correctly, this concept can spread your crowdfunding idea rapidly because tools like Twitter and Facebook are just that good.
To illustrate, if you were to share 10, 100, or 1000 Facebook friends, the likelihood of crowdfunding success increase by 9%, 20%, and even 40%, individually. Essentially, you must try to have an engaged following before you launch your campaign for it to be successful. Many businesses have used social media to drive successful fundraising campaigns and found it to be very effective.
Crowdfunding Calculator Prior Campaigns
– if you are part of the 38% of Kickstarter campaign owners that have already managed to meet their project goals, congratulations twice over. It means you have already nearly doubled your chances for another successful campaign, according to new data.
One crowdfunding platform told the Wall Street Journal that several website users who’ve met their previous business funding goals always have about a 73% chance of doing so with their next projects.
Slavia Rubin, the CEO of the crowdfunding site, Indiegogo, also claimed having seen a similar trend emerge among his users.
Crowdfunding Calculator Supportive Personal Networks
– as a business, the greater and more engaged your personal network is before you start your fundraising round, the more likely you will meet or exceed your crowdfunding goal. Essentially, fundraising success starts with tapping into your most effective fan base.
It’s essential that you get your friends, family members, and other existing customers as informed and excited about your campaign as possible before it actually launches. Most established businesses will recommend you consider a ‘soft launch’ a month before you kick off your campaign. You can also use email marketing, social media, and old-fashioned word-of-mouth. These strategies should help you spread the word faster without asking for support.
Crowdfunding Calculator Compelling Rewards
– while this may seem obvious for businesses that consider using a rewards-based crowdfunding campaign, it’s actually worth looking into and thinking long and hard about. You’ll often find that most backers aren’t always going to support you because of goodwill or altruism. While a few may pledge donations to see your business succeed, others will be swayed more by what they’ll get out of it.
Fortunately, rewards come in all shapes and sizes. So, you can use any rewards-based tactic to boost your campaign. However, most businesses always choose to pre-order or discounted first-run purchases for the products they are raising funds to create.
Therefore, you must think long and hard about the rewards tiers you intend to use. If possible, always offer something that doesn’t cost anything above $20. Also, be sure to encourage supporters to make larger pledges by building every higher tier with rewards that come with it.
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