8 Things to Do Before Launching a Crowdfunding Campaign

It always saddens me when I find an interesting crowdfunding project that I know is going to fail. And it frustrates me when I find a project that I would support—if only they’d given me a reason to do so. But they didn’t, and so I don’t. In the interest of keeping others from making the mistakes that I see so often—and in the hope that more people will plan for successful crowdfunding campaigns—here is my list of 8 essential steps to take before you launch your campaign:

1. Set a realistic goal. On Kickstarter, 75% of funded projects raise less than $10,000. Check out the chart below for more details. Before you start a campaign, ask yourself how much you really need and whether you have an audience that can help get you there.

2. Leverage your personal network. Without your network, you won’t get far. Crowdfunding isn’t free money. According to Kickstarter, 80% of projects that raise at least 20% of their target are ultimately successful. To take that a step further, 98% of projects that raise at least 60% of their target finish with success. Can your fans get you to 20%? That’s a great start. How about 60%? Then you’re almost guaranteed a successful close. On that note…

3. Make sure your crowd can use the Interwebs. This sounds like a duh, but I’ve consulted on a crowdfunding project where the supporters needed step-by-step instructions to leave pledges. The project was ultimately successful, but it took a lot of coaching on the part of its creators to get fans to the crowdfunding site and submitting pledges.

4. Engage, engage, engage. Announce your project well in advance of its launch and post frequent updates while it’s open. In that vein, it may seem like a good idea to have a long—even unlimited—project duration, but shorter projects actually fare better. Take a lesson from the ever-more-sensationalized television news: People’s attention spans are short. Grab ’em and keep ’em engaged.

5. Start your rewards small. The most popular pledge amount is $25, and 90% of pledges fall below $100. Can you begin your rewards as low as $1 or $5? Do it.

6. Make your rewards compelling. Look at your reward options from an outsider’s perspective. What would make you pull out your hard-earned cash and plunk it down in support of a project? If you’re fundraising for photography, build postcards, signed prints, books, and photo experiences into your reward list.

7. Ensure your rewards make sense, and make it easy for people to move up your pledge ladder. Yep, this is my third tip focused on rewards. Your rewards are make-it-or-break-it material. They are also a ladder, one that should entice your fans upward and make it easy for them to join the fun. Ideally, make each reward build on the next. For example:

   • $1 or more: Our deepest thanks and continued project updates.
   • $5 or more: All of the above, plus a personalized thank you note.
   • $10 or more: All of the above, plus a 4×6 mini print from the project.
   • $25 or more: All of the above, plus a project t-shirt.
   • $50 or more: All of the above, plus a signed 8×10 print from the project.
   • $75 or more: A signed 11×14 print, plus everything from the $25 reward level.
   • $150 or more: A signed copy of our new book, plus everything at the $75 reward level.

   Are you getting the idea? The last thing you want is for someone to desire something you offered at a lower reward level that they can’t get further up the ladder. It caps their support and yours. Note: This is just one example of a successful reward ladder. Brainstorm and think outside the box to plan your own.

8. Be prepared to invest significant time to make your project a success. Managing a crowdfunding campaign is hard work. Share your passion, persistently but kindly. Reach out to influential friends for co-creation at higher reward levels (for example, a book signed by all of your photography subjects, if they’re well known, or a portrait session with you and a cool friend.) And make it personal. Personalized outreach is always more successful than form letters. If you need help, hire a virtual assistant or engage a friend. It’s always easier to stay motivated when more people are on board.

Bottom line: Plan for success. Or you may be destined for failure.

Do you have any tips that I missed? Please feel free to add them in the comments. And, if you have any questions about launching a successful crowdfunding campaign, please feel free to reach out. I love hearing from you!

Cheers,