A few crowdfunding tips
Tip: in most cases, you’re not gonna want to crowdfund
I’ve done 5 campaigns, I know how crowdfunding works. And that’s why I can advise people (and companies) not to crowdfund. Why? Let’s take a look at the numbers. At Kickstarter only 44% of campaigns succeed whereas at IndieGogo this goes down to 33%. Not so great, huh? Crowdfunding is usually not a good idea.
It’s understandable that people get excited about it. After all, we only hear about the successes stories, the rags to riches, and so it’s natural to think this is the way to go. But it’s really not. Not unless you’re really confident that you’ll hit your target. Here are some tips to help you scope out if you will.
Only crowdfund when:
- You have a movement that people want to be a part of (you need people with huge networks that will step in as backers first)
- Your project is personal (it needs to be a genuine cause)
- You have a clear reason to actually crowdfund rather than just raise money (i.e., you must need the movement more than you need the money)
- Your backers will get something valuable in return
- You have a low point of entry (any amount counts! Don’t expect people to donate more than 10 euros)
- There’s no better alternative on the market than what you’re offering
- You’re willing to work day and night to raise the funds
- The cause is urgent
- You think you could raise half of the money in a day (this is important as otherwise people won’t believe you’ll make it and your campaign will only inch along)
- You don’t have to raise a lot of money
I might add a few more soon but for now, in case you’re interested, here’s a little about the crowdfunding actions I’ve done:
My first was an easy one: making 45 cardboard artworks of painted birds to pay for a flight (€800) to NYC to start a project called Times Square Art Square (currently on hold). Later, we (just!) raised 10k in 3 months for the same project. Then there’s the one I did in Kinshasa with Les Oiseaux de Merde in order to paint a wall of a Congolese theatre in exchange for somewhere to sleep — I’d pledged that I’d paint the names of my backers on the wall. Months later I would raise €1600 by dancing in order to fix my computer (backers got their names engraved on it) that I needed in order to pay my bills and rent (I’m a designer). And the last one (this time trying to raise €100k, again for Times Square Art Square) we unfortunately had to cancel due to Hurricane Sandy.
Bottom line? Know the hurdles, think twice and only then start your campaign.
Please don’t hesitate to hit me up at justus@brunsniks.com for more tips and tricks or work with us at brunsniks.com.
