3 Keys To Effective Crowdfunding
New terms always come up to give the same old things a new edge. Crowdfunding is not new. It’s how circuses, traveling shows and music concerts have always survived. Sure, the tools have changed. But the basic principles have not.
- First, you create or find something entertaining and interesting – because if you don’t do that, the rest is pointless.
- Then you must build an audience or go get an audience by marketing, promoting and partnering, relentlessly.
- And finally, you must make it easy and rewarding for those interested to participate in the experience.
If you saw the movie, The Greatest Showman, you’ll get the importance of creating entertainment value, driving focused promotion and delivering a grand experience for the audience. You might find the facts in this video interesting.
You may be considering crowdfunding for yourself, a friend, a good cause or to help an organization, you’ll start out with a lot of questions. The first is likely, “does it work?”
The short answer is, yes. And then there should be an asterisk with legal copy that explains that your results will vary depending upon the factors above. Is your crowdfunding project highly engaging and interesting? Maybe to you, but how about others? Ask and find out before you proceed. How large a following you have, and can you access to a larger audience in some way? How well can you promote or market? What do people have to do to contribute? And what is the reward? Sound familiar?
There are many other questions that must be answered, some involve the platform and it’s ability to draw an audience, have a great user experience, provide security and earn the trust of users. While there are other blog posts and videos about the answers to those questions and more, this post is about the effectiveness of crowdfunding, which means we need to look at some statistics and make some conclusions.
The following information is from this source: https://nonprofitssource.com/online-giving-statistics/
Online Crowdfunding Statistics
- $9,237.55 is the average amount a nonprofit crowdfunding campaign raises.
- $568 is the average amount individuals raise through crowdfunding.
- An average of 8 people donate to an individual crowdfunding campaign.
- The average donation size to a crowdfunding campaign is $66.
- 17% of crowdfunding donations are made on mobile devices.
- Campaigns that can gain 30% of their goal within the first week are more likely to succeed.
- Social Media is a critical factor in crowdfunding success: for every order of magnitude increase in Facebook friends (10, 100, 1000), the probability of success increases drastically (from 9%-, 20%, to 40%).
- Individuals ages 24-35 are much more likely to participate in crowdfunding campaigns; those over 45 are significantly less likely to back campaigns.
- There’s an average of a 35% increase in giving when there’s a crowdfunding thermometer.
- 62% of donors who give to crowdfunding campaigns are new to crowdfunding.
- 300-500; the average word count in the campaign description for projects that raise the most money.
- Campaign owners raise 3X more if they update supporters every 5 days.
- The average number of updates that a successful campaign owner posts is 4.
- Crowdfunding campaigns get 126% more donations when owners update supporters.
- Campaigns that are shared fewer than 2 times have a 97% chance of failure.
- Crowdfunding campaigns with personal videos raise 150% than those that don’t have videos.
- Over half of people who receive an email about a crowdfunding campaign made a donation.
Now, understand that these statistics cover every kind of crowdfunding, personal, charity and corporate. And with any statistcal data, there can be many things that sway the results. Using averages means that there may be very disparate results from the extreme ends of the range. Some celebrity crowdfunding projects raise millions while most grassroots crowdfunding projects might raise a few hundred. That is not to deter people from doing crowdfunding, but to set expectations for those that think that a simple page with a pledge or donate button will bring in thousands of dollars in a short time.
The most successful crowdfunding campaigns involve sharing something of value, and offering rewards that people actually want. And what is missing from the majority of crowdfunding campaigns is great content – the big show or attraction. These days engagement must include video, images and storytelling. Content that is entertaining is great, but if it’s also informative thats it’s even better. Look at statistics and advice on successful youtube videos and channels and you’ll find that those videos/channels that both entertain and inform are far more popular and successful.
What makes funddeed unique in the nonprofit crowdfunding landscape is it’s content. The projects on funddeed are stories of the volunteers experience. Personal achievements that are inherently tied to heart-felt causes that are benefiting. As these stories unfold, they are both informative and entertaining. And that is a formula that works.
Whether you are crowdfunding for yourself or a great cause, many of the tips and techniques for successful crowdfunding will help. I have gathered just a few of the many videos out there that offer tips on crowdfunding. I hope these will be helpful to you.
Seed & Spark CEO Emily Best – https://youtu.be/YRvu6e9Utd4
Indiegogo Founder Danae Ringelmann – https://youtu.be/4r4uFiNtdL4
CreatorUp Marketing Director Justin Maisson – https://youtu.be/6Svtr45lmXM
Successful crowdfunding takes effort. A lot of effort in most cases. And the factors that will help you succeed need to be considered fully before you decide what platform, website or partner you choose to use. There are many great crowdfunding services out there. Do your homework and look at the pros/cons of each to determine where you will get the best results. Happy crowdfunding!
#crowdfunding #fundraising #nonprofit #volunteer #funddeed
Tags: crowdfunding, fundraising, nonprofit, peertopeer, volunteer