With fairly 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 prearranged and forgotten venture like the magical Ron Popeil steakhouse of yesteryear. Crowdfunding projects require a solid (pre) game plan to launch a lucrative campaign. Step-by-step planning, checklists, strategy, and execution are needed to build and launch a crowdfunding campaign that will be funded. And, ultimately, it’s about the first three days. What is magical in three days? And how can I safely predict whether it will 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 if you hit the magic number of 20% of your fundraising goal in three days, you’re overwhelmingly MORE likely to walk away with a fully funded campaign. Those are outrageously high odds.
The (first) question my clients ask is “How do I get to <20% in 3 days?"
The honest answer is that there are a lot of strategies in play, but having a game plan is what will help the most (absolutely).
Very good, you have that, but how much are you asking?
Sure, a dollar can’t buy much these days, but it’s enough to kill the momentum of your crowdfunding campaign. It can also be the impetus for your campaign to be a huge success.
Crowdfunding is a complicated and nuanced perspective. Maximizing your chances of being fully funded is critical, and otherwise strong and innovative projects can fail simply because some easily correctable line items were not reviewed. Checklists are gold.
The goal of crowdfunding is to excite and gain support from the masses: the crowd. There are many campaigns that don’t embrace the collective part of crowdfunding and create only a few pricing options in hopes of maximizing their fundraising and giving the project a sense of exclusivity. This is false economy. To maximize your chances of having a successful campaign, you should have at least six levels of participation for backers, starting at $1.
The most successful campaigns are those that have sponsors from everybody income levels – starting at just $1. This allows three main advantages:
- $1 allows each financial situation to participate
- $1 encourages more participants, which increases the chances of the campaign reaching the front page
- $1 increases the chance that the campaign will go viral.
$1 makes your campaign more accessible, more visible, and therefore more likely to be successful. Sure the higher levels can sell the product and make money, but the lower levels build (their) community and get people talking.
My point is this: a (crowdfunding) dollar is worth much more than its monetary value.