Tuesday, December 10, 2013
Crowdfunding 30% Rule
Some quick thoughts for if you're self producing and considering crowd-funding with kickstarter or indiegogo: Momentum in crowd-funding makes a big difference. Start with at least 30% of the goal committed, and success is far more likely.
Consider these study results:
- Projects starting with 0% showed a 15% chance of success
- Projects beginning with 1% experienced a 27% likelihood of success
- Projects with 5% of their funds pre-committed had 50-50 odds
- Projects with 10% pre-committed discovered that their odds increased to 70%
- Projects having 20% experienced a 80% chance of success
- Projects starting with 35% or more completed their goals in every instance
Before launching, try and pre-commit at least 30% (if not more), either through guaranteed pledges or your own personal money
You can probably ask friends and family for money once just because they are your friends and family. For any additional times, they better already be delighted that you asked them the first time. In all cases, the key isn't just connecting with your friends and family, but also people who aren't already your friends and family; connect with the people who will be fans. Crowdfunding might be best seen as a way to engage your audience, and enrich their experience, and not used as the central source of financing.
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