Setting an achievable crowdfunding goal is central to a successful campaign. In fact, we’d even go as far as to say that without crafting a realistic crowdfunding goal, you’ve basically set yourself up for failure. To begin with, the funding goal has to be in line with the average Kickstarter funding goal. Failure to set a funding goal that seems achievable may destroy your credibility as well as turn potential backers off.
You also need to ensure that your funding goal aligns with your project needs. For instance, if the project is a book instead of a product, its funding goal might be higher compared to ‘’if it were’’ a music recording or a film. Lastly, don’t forget the taxes. Fundraising via crowdfunding may be costly and time-consuming. Therefore, it is important to take all your expenses into account when deciding on your funding goal.
If you follow the above precautions, you will set yourself up for success on Kickstarter.
How to settle on an effective crowdfunding goal
1. Evaluate your existing fanbase
Take into consideration the overall sum of money you want to raise for you to achieve your goals. This is inclusive of both the cost of initial investment and any extra funds required to turn your prototype into a product on the market. The second thing to consider is the amount of interest that the potential backers have in the project. If the demand for the project is high, you may set a higher funding goal.
Ultimately, you should be realistic about the amount of money that you expect to get from the pledges of your backers. If you don’t have high high-traffic website or even a very popular product, your backers are unlikely to pledge a high amount. Consider this when setting your fundraising goal.
2. Figure out what your campaign is worth
You need to understand the worth of your campaign before setting your campaign goal. That’s because the outcome of the campaign may not turn out as expected if you undervalue or overvalue your campaign. There are a few factors that you will have to consider while approximating your project’s value. For you to come up with an appropriate estimation of the total amount you will need, begin by calculating the amount you need and the number of initial backers you expect to attract. Initial backers can be your friends and family – people who you know will support you out of goodwill.
You can figure out the percentage of backers who might be willing to pledge approximately $25 and then multiply the figure by the overall amount requested. This will help you get an idea of the total average amount that all the backers will contribute. To finalize, take off the amount required for Indiegogo and Kickstarter fees from the overall sum of money raised to arrive at your estimated crowdfunding total.
If you keenly follow the above steps, you can create a realistic fundraising goal that is high enough yet accessible enough to ensure that the project is successful.
3. Calculate the costs associated with running and promoting a crowdfunding campaign
To settle on a realistic funding goal, it’s important to understand the costs associated with promoting and carrying out a crowdfunding campaign. Just as with other businesses, a crowdfunding campaign needs investment and preparation. To make sure that the campaign is successful, ensure that you calculate the expense of promoting and running it. This is inclusive of everything from the previous cost of setting up and expenses such as marketing the campaign on social media and the fees of website hosting.
You also need to ensure that the campaign is relevant and visible to the targeted audience. This means coming up with a persuasive or powerful project that resonates with the backers and promotional material that represents the project or product you are marketing. Keep a record of the progress all through the campaign activity.
4. Establish milestones and deadlines
It’s also important to establish a series of milestones and deadlines rather than just having a boundless goal. Breaking your overall crowdfunding goal into milestones and deadlines makes it look more achievable to a potential backer. It also increases their confidence in your project, since they will have an idea of when you’re planning to do what.
5. Calculate the value of backer rewards and incentives
Interestingly enough, not every backer is interested in getting a physical product’ after pledging. Some backers support the project because they have more interest in getting discounts and exclusive experiences. For this reason, it would be useful to offer a series of tiered rewards for backers.
It’s important to take the cost of producing and delivering these rewards into account as you calculate your crowdfunding goal. Additionally, take shipping fees and production costs into consideration as well as extra costs related to rewards fulfillment.
6. Take the time into consideration
Another aspect to consider while setting your crowdfunding goal is the duration of time you have to raise the amount required. Aiming to raise a ton of money in a short time can be self-defeating, for obvious reasons. If you’re going to aim high, make sure you give yourself enough time to market the crowdfunding campaign and attract the right backers.
7. Ask a crowdfunding consultant for help
You need to consult a crowdfunding expert early enough so that you can ensure that the campaign is organized well from the get-go. This crowdfunding consultant will also give you the advice and support you need to reach potential backers in the most effective way possible.
8. Be reasonable
Do not set a high goal if you are not sure whether you’ll succeed in raising the required money. Ultimately, if you fail to reach your crowdfunding goal, this could affect your brand’s credibility. Remember that unrealistically high goals may also scare away potential backers.
9. Make a contingency plan
It’s always wise to plan for potential issues. Just like other business ventures, crowdfunding can have unpredictable challenges. The challenges may be financial or logical. Coming up with plans for dealing with matters that may arise is the best way of keeping your campaign robust.
10. Design attractive videos and images
Make sure the campaign includes appealing videos and images. People are likely to contribute if they see videos and images of what their money is going towards. Add videos and images of the project to your campaign page for potential backers to feel connected to the project.
11. Stay positive and stay within your budget
Setting realistic goals for your campaign is the best way to maximize the potential of achieving your funding goals. When setting your goal, remember that you don’t want to establish a goal that may be impossible for you to achieve. Rather, set a realistic goal that allows you to cater to your project`s cost while still leaving some room for unforeseen expenses.
For instance, if your project aim is $5,000 don’t set your goal as $10,000. Instead, set a goal that can cover the cost of supplies and materials needed for the project. Such material includes production equipment and campaign fees.
Make sure you factor in any handling and shipping costs in your fundraising goal calculations. This saves you from inconveniences that arise when you have to dip into your pocket to fund the development of the product that you’re crowdfunding for.
Keep in mind that if you want to reach your funding goal, you have to remain positive and stay within your budget. Set your goals and stick to them throughout the entire campaign process.
The bottom line
Setting a realistic Kickstarter goal is crucial for the success of your crowdfunding campaign. Always remember that once you’ve launched your project you cannot change your funding goal, so it pays to invest time and effort into establishing a goal that works for you and your backers.
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