How to Run a Successful Crowdfunding Kickstarter Campaign
Crowdfunding isn't a piece of cake, but following a few simple tips can help launch a killer Kickstarter project, rack up the pledges, and get your product off the ground. Our friends from SurePayroll created an Infographic that reveals interesting Kickstarter stats and explains how to launch a successful crowdfunding campaign. Scroll to the bottom of this post to see a text version of this infographic that you can share with your friends.
You might also like our blogpost: 25 Startup Marketing Tips To Get Traction.
Kickstarter Stats and Facts from our friends at SurePayroll
- Kickstarter launched in 2009.
- It's a U.S.-based funding platform for creative projects.
- So far, there have been more than 74,000 successfully funded projects.
- People (backers) can pledge a minimum of $1 to fund a project.
- More than $1.4 billion has been pledged to Kickstarter projects.
- Total backers = 7,527,324
- Repeat Backers = 2,255,804
- Total Pledges = 19,119,029
- People who backed 50 or more projects in the third quarter of 2014 = 335
- 40 percent of Kickstarter projects are successful.
- Most successfully funded projects raise less than $10,000, but some projects have reached 6 and 7 figures.
- 8,542 launched projects, less than $1,000 pledged
- 45,576 launched projects, $1,000 to $9,999 pledged
- 10,409 launched projects, $10,000 to $19,000 pledged
- 8,706 launched projects, $20,000 to $99,999 pledged
- 1,603 launched projects, $100,000 to $999,999 pledged
- 82 launched projects, 1 million dollars pledged
- While 12 percent of projects finished having never received a single pledge break, 79 percent of the projects that raised more than 20 percent of their goal were successfully funded.
Kickstarter Projects and Funding
- 2010 - 11.130 launched projects, $27.64 million pledged
- 2011 - 27.086 launched projects, $99.34 million pledged
- 2012 - 33.551 launched projects, $366 million pledged
Successfully Funded Kickstarter Projects
62,642 people pledged $13.3 million to the Coolest Cooler, making it the most-funded Kickstarter project ever. This "portable party" was equipped with a blender, waterproof speaker, and USB charger, disguised as a cooler.
Crowdfunding 101: Tips to Run a Successful Campaign
- Solve a problem
- Make sure your product is something people really want or need.
- Create a one to two sentence explanation of how your product will solve a problem.
- Start early
- Start working on a campaign 6 months before the launch date.
- Test and refine your product long before launching.
- Get to know the competition
- Research similar projects. Kickstarter does not remove campaigns once they've ended, so similar ideas can help predict success rates.
- Check out sites like Kickspy to see if others in your niche have had success.
- Create a solid plan
- Stick to an editorial calendar with day-to-day social media strategies, and update posts.
- Make a budget and include it on the campaign page.
- Berkeley research shows crowdfunding campaigns that successfully raised $100,000 spent at least 200 hours preparing for a project and an average of 136 hours managing it before earning any funding.
- Fund before going live
- Reach out to thought leaders and other potential supporters to acquire some capital before the Kickstarter page goes live.
- Connect with friends, family, co-workers, or anyone else you think may spread the word.
- Follow the rules
Read Kickstarter's guidelines carefully, then reread them again before submitting a project for review.
- Create something to share with others.
- Be honest and clearly presented.
- Not fundraise for charity, offer financial incentives, or involve prohibited items.
- Keep your campaign short
- Shoot for 30 days or less.
- Projects lasting less than 30 days or fewer see the highest success rates.
- Aim low Set the funding goal as low as possible. Kickstarter is an all or nothing platform. If the goal is you raise $10,000 and you only raise $9,000, you don't get the money.
- Make a great video
- Focus on the product, add in your background, then include a call to action.
- Keep it under 3 minutes.
- Make time for design Convince potential backers that your project is trustworthy and reliable with a well-designed site, logos, and photos.
- Pitch the press Pitch blogs and make sure to follow their contact rules.
- Use social media But don't rely on it. Build a fan base by driving people to social media channels from the project page where you can post exclusive updates.
- Award donors
- Compensate donors for their generous donation. Offer reduced prices.
- Send customized, personal thank you emails.
- Follow up on feedback Respond to comments and suggestions by tweaking product designs, pricing, and/or markting strategies.
- Update backers Send out updates to give a behind-the-scenes look at any growth and progress.
- Campaign offline, too Include real-world components such as community events and launch parties.