5 things you need to know before crowdfunding

by Back Her Business | Apr 05, 2019 | Learn

5 things you need to know before crowdfunding

You’ve got it! You’ve got that idea that will make a massive impact on your community, or maybe even the world, but now you’re wondering how to get the funds that will make it happen. Well, crowdfunding can propel your idea into a reality.

Crowdfunding is not only an excellent way of raising the funds for your idea, it can also raise awareness of your brand/organisation and, once your project has successfully closed, you’ll have your own crowd of supporters joining you for your future adventures.

Although, not all ideas are suitable for crowdfunding. This can be for a number of reasons, such as your idea needs some more development before it’s ready to be sent out into the world, or maybe you haven’t actually told anyone about it yet. Remember, to make your project a success, you need people to support you. Did you know that the most common question we get asked is, “Will my project successfully crowdfund?”

Well, our team think that it really comes down to these five things:

1. Are you able to reach enough people?

One of the most important things is to have your own crowd around you so, when you hit the ground running, they’re there to support you. Basically, you need to have an engaged audience and this could be via social media, an email database, or through word of mouth!

  • Facebook: Having a Facebook group, page, or following is always a promising sign for anyone thinking of crowdfunding. Although, it’s not just about how the big the following is, it’s also about how much they’re engaging with your posts. If you wanted to raise over £2000, you’d want a following of 500+ people who are really loving what you’re putting out into the world.
  • Email: Spreading the word through email is also a great way to get people on board with your project. To raise over £2000, having a list of over 500 people is a good place to start.
  • Real world: Yes, the actual crowdfunding will take place online, but one of the best ways to get someone to pledge to your project is either on the phone or, better yet, face to face. A launch party, or another type of event, is a great way to get lots of people in one place where you can tell them all about your project and answer any questions that they may have about it!

2. Is your idea good enough?

There’s one astounding thing about ideas and that is that they have the potential to change the world or, at the very least, someone’s world. We always recommend testing your idea out on people first by asking if they would back your project. If they say yes, it’s always worth asking how much would they be willing to pledge.

These answers can really be essential when it comes to perfecting your project description, video, and picture! They can also help you figure out if your target is realistic.

3. Do you have to add rewards?

Crowdfunding comes in all different shapes and sizes, but Crowdfunder is a rewards and donation based crowdfunding platform, so, yes, add rewards to your project! These rewards can be an excellent way of building excitement about your project and also increasing the amount your supporters will pledge.

Usually, before a supporter has even landed on your project page, they will have already decided how much they’re going to pledge. So, an amazing reward could make them change their mind and pledge more than they originally planned.

Having rewards from as little as £10 is a great way to make sure everyone has a chance to get involved in the action. After all, you don’t want anyone leaving without pledging anything because you didn’t cover all budgets.

4. How much can you raise?

It’s true that there’s no limit to how much you can raise, but, to enable your idea to become a reality, we always recommend making sure that your target is realistic. When it comes down to it, it all depends how big your Crowd is and how many new supporters you can garner. On ‘All or Nothing’, the average pledge is £50. So, let’s say you were hoping to raise £2000, you’d need roughly 40 people to make a pledge.

It’s good to remember that there will be some people who see your project but don’t actually pledge. On average, 1 in 20 people make a pledge, so getting over 800 people on your page should put you in good stead to reach a target of £2000.

5. Get off to a good start!

A Crowdfunder page is just like a party – no one wants to arrive first. Having about 10 supporters already lined up will get you through that awkward first stage where no one wants to be the first to pledge.

People are also more likely to pledge if they see others already backing your project, so it’s a good idea to hold off on social media and email promotion until you have about 10% already pledged!