One question that comes up again and again is how to determine the “right” target amount. We’re not surprised it comes up repeatedly, because it’s not easy to answer, since it’s not clear who is going to support the campaign, how much they’ll pledge, and which goodies will be popular. Ideally, the target amount strikes a balance between the amount needed for implementation and the amount you expect to raise from your crowd. If you set the amount too low, you run the risk of not being able to fully implement the project as planned. Conversely, if the amount is set too high, this might cause the project to fail.
It is essential to be able to actually deliver what you promise the crowd. This calculation can be used to make sure that the target amount is not set too low: Effective project demand + 5% reserve + expenses for goodies (don’t forget postage costs!) + PR / marketing costs + crowdfunding platform commission (around 10%) = crowdfunding target amount
But...
Have you been sitting on a crowdfunding project idea for a while now? These 10 steps will help you to successfully launch it.
Step 1: Understand the principle of crowdfunding
With Crowdify’s “reward-based crowdfunding”, you decide on the target amount, your crowdfunding’s duration (3 to 50 days) and the goodies you’ll use to reward your boosters. Boosters can also choose to support you without receiving any goodies.
Most crowdfunding platforms use an all or nothing approach. If you reach or exceed the target amount, the money is paid out; if you don’t, the money is returned to the boosters. If you are unsuccessful, you don’t have anything to pay. If you are successful, most platforms charge a commission of around 10%, which also includes any credit card fees.
Generally, project initiators get money from 3 different sources: from family, friends and acquaintances (the crowd), from distant acquaintances and acquaintances of acquaintances (network) and from...
Goodies are an important part of all crowdfunding projects. However, social projects represent a “special” case. We’ll show you how to choose the right goodies for your social project and how to use creative ideas to get boosters to support your crowdfunding. The “special” case of social projects With social projects, your goodies don’t need to have the usual nominal value. In general, the main aim of crowdfunding is to raise as much money as possible to make the project a reality. However, goodies are often decisive in whether your project is supported and how much is donated. Goody numbers and prices Even if a lot of boosters would still support a social project without goodies in return, we still recommend that you offer at least 4 to 6 goodies for a range of budgets. It’s a nice gesture and it gives boosters an idea of how far their donation amount will go. They can also choose how much they want to donate if you show them how much can be done with their donation....
