With pretty consistent results, I can predict whether or not a crowdfunding campaign will fail in 3 days…
Spoiler Alert: You can, too.
Crowdfunding is not a set it and forget it venture like Ron Popeil’s magical rotisserie from back in the day. Crowdfunding projects take a solid (pre) game plan to launch a lucrative campaign. It takes step by step planning, checklists, strategy, and execution to build and launch a crowdfunding campaign that will be funded. And ultimately, it is all about the first three days. What is so magical about three days? And how can I confidently predict if you’re going to succeed or fail?
It’s called, the 20% rule.
Crowdfunding campaigns that reach 20% of their goal in the first three days have a success rate of 90%. That means that if you hit the magic 20% number of your fundraising goal in three days, you are overwhelmingly MORE likely to walk away with a fully funded campaign. Those are outrageously high odds.
The (first) question my clients ask, “How do I get to <20% in 3 days?”
The honest answer is, there are many strategies at play but having a gameplan is what will help the (absolute) most.
Alright, you have that- but how much do you ask for?
Sure, a dollar can’t buy much these days, but it is just enough to kill the momentum your crowdfunding campaign. It can also be the impetus that leads your campaign to be a huge success.
Crowdfunding is a tricky and nuanced prospect. Maximizing your chance of being fully funded is critical, and projects that are otherwise solid and ground breaking can fail, simply because a few easily fixable line items went unchecked. Check lists are gold.
The goal of crowdfunding is to excite and gain support of the masses – the crowd. There are many campaigns that don’t embrace the crowd part of crowdfunding, and create only a few pricing options in hopes of maximizing their fundraising and give the project a sense of exclusivity. This is false economy. In order to maximize your chances of having a successful campaign, you need to have at least six levels of participation for backers, starting at $1.
The most successful campaigns are those that have backers of all income levels – starting at just $1. This allows three major upsides:
- $1 allows every financial situation to participate
- $1 encourages more participants which increases the campaign’s chance of making the main page
- $1 increases chance of the campaign going viral.
$1 makes your campaign more accessible, more visible, and therefore more likely to succeed- period. Sure the higher tiers might sell the product and pull in the bucks, but the lower tiers build (your) community and get people talking.
My point is this – a (crowdfunding) dollar carries far more value than its monetary worth.