Kickstarter is a major player in the crowdfunding game, so it only makes sense to have entrepreneurs wanting to get involved with fundraising on the platform. Because there are so many entrepreneurial spirits involved today, however, it can be difficult to stand out from the tens of thousands of other projects. Kickstarter is listed as one of the top 600 visited websites in the world. It’s even become a verb, like you’re going to “Google” something or you’ll “Facebook” someone later.
Kickstarter has had some amazing successes since it was launched in 2009. It’s raised over $1.3 billion in total pledges and at least 7 million people have backed over 70,000 total successful projects. The only problem is that the success rate on Kickstarter is just 41%. In other words, 6 out of 10 projects are going to fail before they ever get listed.
Knowing Your Audience Is Necessary Today
It doesn’t take a slick marketing video or a total engagement of your brand on social networks or media today to taste success. You can even be a sole proprietor or a partnership who is just getting started. What you do need to have is a good idea. If you’ve got a great idea that has a lot of potential for success, then you’ve got a chance for success. When you can clearly communicate that potential to your target audience, then you’ll be able to get your project rolling.
For many first-time entrepreneurs, many of the funding promises on Kickstarter come from family and friends. It’s not a bad way to go and many projects can get half of their funding in this way in a short amount of time. The problem with Kickstarter, however, is that it is an all or nothing proposal. You’re either going to get funded or you won’t. That’s why it is also important to set realistic funding goals for your project and outline them completely.
Many People Wait Until the Last Minute
Backers like to support a winner. Because Kickstarter is all or nothing, it isn’t uncommon to see an initial surge in the first days of a project and then nothing for weeks at a time. Then, as the hours of a campaign begin winding down, backers will surge again if they believe you will meet your goals. For the small rewards-based backer, they’ve got to budget their pledges. If they’re spending $100 on something for a pledge, they can’t send another $100 to somewhere else until they know for sure where that money is going.
That’s why managing your funding goals is so important. With realistic goals that cover your basic needs, you’ll be able to secure funding because it communicates a genuine need to people. If the goal of your Kickstarter is to just get money so you can buy new equipment to keep doing what you are doing, there isn’t any value in those rewards. Get your hook in place to help a buyer understand what you’re planning on doing and then promote the hook. That’s how you’ll succeed.
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