Crowdfunding and You

14 Crowdfunding

Crowdfunding and crowd promoting is on the rise, and whether you’re creating an app, a book, a game; launching a series of events; or even just cultivating a fan base; you should learn about these platforms and campaigns.

Kickstarter recently reached its $1 billion mark in pledges and named Newbery Medalist Neil Gaiman it’s most influential user both for projects he’s funded and for backing hundreds of others. Started in 2009 and considered the granddaddy of crowdfunding, Kickstarter brings in more than $1 million per day. And while the site; which focuses on design, the arts (including publishing), gaming and technology; is the best known, it now has lots of company. There are the large players like IndieGoGo and RocketHub, which take projects from around the world, whereas Kickstarter accepts from the U.S., UK and Canada.

According to the Crowdfunding Industry Report, campaigns raised at least $2.7 billion last year. Crowds Unite, which reports on the space and a good place to learn what’s new, estimates there are more than eight hundred sites as of early 2014 and projections are for substantial growth particularly of niche-specific platforms.

Barriers to entry will vary, and the amount of support you get from each platform will as well. RocketHub, for example, has an excellent “Success School,” filled with information on how to structure and run a campaign. They also provide a breakout of how many backers you’d probably need to reach a given goal: for $1,000-10,000 expect 40-200 backers; $10,000-$100,000 150 or more; and to raise more $100,000, you’ll want at least 1000 backers. To get specific examples of the funding process, you can look at Kicktraq, an analytics tool that monitors details of Kickstarter campaigns where you’d be able to see how many similar projects funded successfully at a given level, the arc of the campaign via graphs that show how much was funded on each day (typically most in the very beginning, a lull in the middle, and a push again at the end); and you can see what media coverage and offers may have impacted activity.

Pubslush and Unbound are book-centered crowdfunding sites that offer the real benefit of understanding the nuances of the market. Pubslush has an Author Assist program and works closely with clients, according to Development Director Justine Schofield.

“We’re geared to the needs of people in this niche, and we work to help them structure a campaign that will reach their target audience,” says Schofield. “I think crowdfunding is ideal for books and particularly for children’s books. We’re often asked if non-fiction or fiction do better and if some genres gain more traction, but the truth is that what really drives the campaign is the author. The passion they convey about the project, the drive to make the campaign work, and the work they do to market both before and after matter.

“Key factors are to have a clear goal for your campaign and effectively brand yourself as an author. People will be more likely to back you, if you tell a compelling personal story, help them understand why the project’s important, and explain what will be done with the money once it’s raised.

“The goals structure is also very important. Think about giving backers experiences not just gifts. They want personalization and a connection to you. You can offer autographed copies, Skype visits, personal appearances, and also special group rates and incentives.” Creating a video is also very important. In fact, Slava Rubin, co-founder of IndieGoGo is quoted as saying that crowdfunding pitches with video content raise 112% more than pitches without videos.”

 Of course, if you don’t want to go project by project, you could take a look at Patreon, which enables fans to give ongoing support to their favorite artists – love it! And if you get that to work, get your crowd to shout it out with Thunderclap!

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