What is the Crowdfunding 30% rule?

Kyle Tummonds
4 min readJan 19, 2018

You may have heard about this rule if you have created a Crowdfunding campaign before. If you have not heard about it, it is a rule of thumb which says if you raise 30% of your campaign funding goal, your campaign is likely going to be successful. Now, of course not all campaigns are successful after they reach the 30% point, but it turns out that the majority of campaigns are. Why is it only 30% though? Turns out this 30% is usually your own personal following. These are the very first people that will donate to your campaign. If you can get your personal social circle to donate this much to your campaign, others will likely join as well. So how do they get this type of funding?

Creating a pre-launch campaign

The best way to reach any Crowdfunding goal is to conduct a lot of research. In addition, you need to create a pre-launch campaign. The pre-launch campaign is what sets the campaigns that reach the 30% mark to those who do not. The whole purpose is to gather a following before you launch your campaign. It is not easy to do, but if you succeed in generating the hype about your product before you start your Crowdfunding campaign, then you will likely have a successful launching day. If you decide to just launch the campaign and begin marketing your campaign without any pre-launch campaigning, you will find it way more difficult to find anyone that wants to donate. No one wants to be the first to join a party, and same concept can be applied to your campaign. As mentioned before, you will need to utilize your personal following first. This may be difficult sending off separate messages to your closest friends and family members. Once you have them interested, next you will have to gain a following from strangers. At this point, you need to be creative. As a general idea, I have heard of people creating contests to gain a following. The contests will ask someone to enter their email to win a particular prize, and that email is then used for marketing purposes afterwards. Take a look at some of the successful pre-launch campaigns that similar Crowdfunding campaigns have done before you, and replicate the same strategy.

Although creating a large email list may be beneficial, you should also create a landing page.

Here is a blog article that explains how to create the landing page in detail: https://www.thrinacia.com/blog/post/creating-a-pre-launch-page-for-your-crowdfunding-campaign

Using a pre-launch landing page will significantly increase your chances to receive the following to your campaign before you launch. This way, not only is your social circle likely going to be donating on the launching day, but strangers may also donate as well. It is very simple, but a long process. It starts before you launch your campaigns, and after you have conducted the right amount of research. What does this have to do with the 30% rule?

If you have a successful pre-launch campaign, this can typically generate the 30% that is needed so that you can get the full funding. It is the perfect strategy to hit the 30% mark early in your campaign, so you are not worried about hitting your campaign goal later on in the campaign. The most successful types of campaigns when it comes to new and creative projects, are those that operate under the AoN (All or Nothing) funding mode. This funding mode insures less risk for the backers. They can feel more comfortable knowing that their money will be returned to them if the campaign is not successful. In addition to utilizing the right funding mode, if your campaign has reached 30% of the campaign funding goal, the potential backers are then more enticed to donate as they can see you are not starting this campaign from “ground 0” with little to no donations. The party has already started so to speak, and more people will want to join. This is why the 30% rule is effective. You can get the type of funding needed once others see that you have the right following behind your project already.

If you are reading this article and are already half way through your campaign, best of luck but if you are reading this before you have started your campaign, then you now know the importance of using the right strategy before launching your Crowdfunding campaign. Any successful Crowdfunding campaign that you see did not become viral by launching on a highly populated platform, although that is usually very helpful for a campaign that already has much success. But the most successful campaigns had a strategy created before they launched. No successful campaign relies on the platform, they rely on their marketing strategy and the hard work put into the project before launching. If you are just beginning to learn more about Crowdfunding, take a deeper look into the subject, and learn the types of strategies that you can utilize so that you reach your campaign goal.