Crowdfunding data changes as quickly as you look it up. As of Monday May 26th 2014 at 6:30pm, the numbers across all categories of Kickstarter showed:
$1,131,653,455 total $’s pledged 62,426 successfully funded projects
6,246,534 total backers 1,858,760 repeat backers
15,390,660 total pledges Overall: 43.47% success rate of campaigns
Kickstarter is not the only option for crowdfunding. There are many choices for some of the categories, some better than others. Regardless of the platform you are considering there are a number of factors involved in a successful campaign.
Jeremy Smith from Provo, Utah, set out to raise $12,000 for his new night light product (the SnapRays Guidelight), and ended up raising over $430,000 (he raised the $12,000 he needed in just 2 hours). Check out his campaign here. He got all the factors right including:
Great Video
The video explaining the product and the Crowdfunding campaign was excellent. It starts by explaining the problem (i.e., existing nightlights have lots of issues like bulkiness). It goes on to explain the benefits of his solution (ease of installation, energy efficiency, etc.). It even does a side-by-side comparison versus an existing solution showing how much better it is.
About 2 minutes into the 2:45 minute video, co-founder Sean appears and says “thanks for watching” and explains how he and his team have “poured their lives” into the project for years. This personalizes the video, helping you get to know and like the team, and makes you more inclined to fund the project.
Finally, the video has inspiring music in the background. While it’s just “stock” music footage, it gets the viewer listening.
Solid Description
Beneath the video, there are many pictures of the product, a great description and answers to the frequently asked questions people have. Where did they uncover what frequently asked questions to answer? Through presenting to potential investors and partners, developing a list of their key questions.
Variety of Reward Options
During a crowdfunding campaign you offer rewards to those that back you. This company wisely created 11 different types of rewards based on contributions of just $12 to $120. By having this variety they were essentially able to price discriminate. People who were only able to pledge $12 pledged that amount, while those with more product interest or money provided more support.
Quality Social Media Marketing
The Guidelight crowdfunding campaign would have been a waste had the founders been unable to drive people to their page. Campaigns that gain 20% in early funding are much more likely to have a successful funding campaign. There is a critical tipping point beyond which people are no longer nervous about pledging. It’s up to the founders to generate the first wave of pledges through their own marketing efforts using social media platforms like Facebook and Twitter to generate a big buzz for their campaign. Successful social media campaigns drive people to their crowdfunding page, and those people often fund the company and/or tell more people about it through social media. The Guidelight campaign raised their requested funding level within 2 hours. That took a great social media marketing plan!
Having a great idea is one thing. The magic is when you execute, beat the odds and raise over $430,000 in under 30 days! The problem? Fulfilling the promises you’ve made.
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Need help getting ready for a crowdfunding campaign? We’d be happy to help you flush out your business idea, develop your video script, collect feedback to establish your frequently asked questions, define your reward options and develop your social media marketing strategy. You’ve got to be really good to be part of the 43.47% of campaigns that get funded through crowdfunding.
Call for an appointment to discuss crowdfunding or business issues you face. Call 931-456-4910 or email cbi@roanestate.edu
To Your Success –
