A Guide to Crowdfunding: Setting Up Effective Crowdfunding: Why Goals Matter will help you consider another of the main points in setting up your own unique funding proposal.
Of course I am talking about ‘Goal Setting’ and you will often see and hear many business people talk about the benefits of goal setting. Certainly even an airplane has a goal, when the pilot sets the destination on his instrument console, the airplane will eventually arrive at the destination.
The reason I say “eventually” is because the aircraft does not go in a straight line directly to its target, it is often blown off course by prevailing winds and has to continually correct its position to reach its final destination.
The same goes for crowdfunding, you need to set your initial goal and you may have to make various adjustments along the way to get it right.
The critical factor
It has been said that setting your goal is a critical factor for any crowdfunding campaign, the reason of course being that the funding site will only release your funds (usually) when you reach your goal. So if you are not dealing with a site that will give you the funds your site has raised, all the money will be returned and the donors will get their money back.
Why sites want you to set a limit
The main reason many crowdfunding websites want you to set a limit or goal for yourself to achieve is that it helps ensure that only good quality projects are funded.
The amount you set as a goal will also tell them if your goal is realistic. For example, if your goal was, say, $8,000 for you to publish a book, then this would be a bit unrealistic as it would actually only cost you $500 to $600 to edit and publish a book. But asking for $8,0000 would be an unrealistic goal for you to ask for.
When setting your goal, it is very important to determine how much you will need for your project. Keep in mind the fees being paid and it might also be an idea to add an extra 20% or more to cover any unforeseen circumstances.
So, for example, if you think you’ll need $15,000 to complete your project, ask for around $18,000.
Presentation
One way that will help you reach your funding goal is if you make a video presentation, try to make an impactful presentation that will generate a lot of interest.
It is certainly a fact that those projects that have video presentations are much more likely to receive funding and achieve their goals than those that do not.
Tips for video presentations
Here are some tips for creating your video:
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Focus on the main elements of your project
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Make sure the video is only 1-5 minutes long (2 minutes is good)
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Tell them WHY they should invest in your project
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Tell them how you FEEL about developing your project
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Add some HUMOR to your video, people will relate to you better if you are friendly.
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Add some photos and a music track that is in line with your theme
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Be sure to highlight the benefits of your project
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Ask them to contribute and also share their project with others.
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Keep your video file as small as possible under 400mB if possible
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Create your video file in MOV, MPEG, AVI or MP4 format
I hope these tips have helped you create an effective crowdfunding setup.