Readying a crowdfunding campaign

December 9, 2011
posted by sheric

I’m doing research to help someone start a crowdfunding campaign on Kickstarter. We have a few months of planning before we launch which gives us a good amount of time to figure out all of the strategy and logistics involved. I have said many times that a successful campaign starts with proper research on what has worked for others, assessing your advantages in this now crowded donation centric landscape and figuring out how to motivate people to choose your project to back.

My friend asked me if Kickstarter was the best platform to choose and I have to say that I’ve seen many more successful film related campaigns succeed there than on Indiegogo. I love all of the people who run Indiegogo and I think their service is sound, but the all or nothing makes a difference for donors in particular. It encourages motivation and momentum because if you don’t hit your goal, you lose it all. Those who pledge to you don’t want to see that happen. It also lessens risk for the donor because the goal you have chosen is what is needed for the project to move forward. If you only raise some of the money, but less than you really need, where does the money go? With Indiegogo, you can keep whatever you raise, but if you need $5,000 and only raised $500, what will be done with that money? The risk is further lessened because if you don’t make the goal, no money is taken for the pledge if the project is on Kickstarter.

We are trying to determine what to ask for, budget wise. Should we try and raise the whole amount we really need or should we raise in stages and complete different sections of the project one at a time? I am sure this is a question that comes up a lot in the planning stages. Here are things I am considering in order to determine this.

1)Full budget breakdown of minimally what we need. No one is going to put us in business. What people don’t want to hear in a pitch is “I need equipment, actors, crew, locations, post production services, festival fees, marketing and distribution costs.” What the hell have you done so far? With no resources at your disposal, you don’t look very professional and no one wants to put you in business. We have to say what we have already accomplished, what resources we have and what else we need to move forward. Transparency goes a long way in getting people to invest in your work.

2)Analysis of the kind of help we will have. We must make up a list of our ardent supporters. The shorter and weaker this list is, the less we will be able to raise. Since most crowdfunding initiatives depend on the internet to reach donors, your list of online supporters must be full of active social media users who are connected to you. If you don’t use social media very often and you don’t have a strong base of support, the amount you can realistically raise is going to be small. Are there those who have managed it somehow, becoming much more proficient at online relationship building  while in the middle of a campaign? Maybe, but who needs the extra burden of getting up to speed on technology and building relationships while under the gun of a funding deadline. Not exactly the best of circumstances to be in for raising money.

3)Analysis of our organizational ties. We have made some organizational ties during the course of development on this project, which is a documentary. Now, we must bear in mind that most organizations are perpetually looking for funding so we won’t be asking them to pledge funds. But we would like  to encourage them to tell their members about the campaign. The easier we can make this for them to do, the more likely they will. It could be in an email blast, a post for their website on what the project is and why they would be interested in it, a link of our Kickstarter page on their Facebook wall and Twitter account, maybe a quote from their Executive Director about why they endorse the project or find it worthwhile. Something that is minimally taxing to them but could help us in a big way.

4)Listing our assets and perk levels. What will we be able to create as far as content and as far as perks to attract donors and give them to pass around? Ideas that spread win, so says Seth Godin. I think the idea behind the film is very powerful and will resonate with people as long as they 1)become aware of it  2)feel motivated to share it. So we need some good video to explain what we are doing and how someone can help us. But not just ONE piece, many pieces because often you have to touch someone many times with your message before it sinks in, before you can entice them to put in that card number and email address, before they decide “yes, I think I would like to become invested in this.”  We have evolved beyond just one pitch video where you look someone in the eye and ask for money, now we have to regularly keep them up to date on how the campaign going, both in email and in video. It’s like having a Youtube channel, you can’t only have your trailer on it. Once someone has seen it, why go back?

Also, some people are motivated by perks. What perks will we offer that won’t cost us money from the budget we need to do the thing we are raising the money for and still satisfy the modern human need for “transaction”? And the levels of transaction? Personally I am not motivated by the perks in a crowdfunding effort, but I understand some people are and offering prized tokens to our audience is a consideration.

5)Listing the strangers. This one will come last but is quite important. I know all of you reading this have been hit up on a near daily basis by crowdfunding campaigns from your filmmaker friends…and their friends. We have to move out of the immediate circle of friends and family and organizations that know us and into the uncharted territory of strangers. About how many targeted strangers can we reach? This is where knowing your audience characteristics comes in because if you don’t have a clue, where in the world (literally!) will you start? Remember that crowdfunding isn’t just about raising money, it is equally about building an audience for our work. Backers provide encouragement, support, and public validation too. The first impression we are making to strangers is going to be this campaign and starting relationships by asking for money is really not cool. We must present differently to this group, we can’t have the same message used for friends and acquaintances. It may also be that this group is mainly reached through the core supporters so we need to arm them with the knowledge on how to help us widen the circle.

6)Time frame of the campaign. I wanted to make this a list of 5, but this is an important consideration that didn’t fit anywhere else. When should we launch and for how long should we run? I think Christmas and tax time are not good times to launch a fundraising effort. So now that leaves January (when those holiday bills start rolling in? maybe not), February and March for us. I need to see if there are any “events” or days of special significance we might tie the campaign to in order to make it particularly relevant during this time. We might not find anything. Also, I do subscribe to the idea the shorter the campaign, the more successful because momentum and enthusiasm slows down the longer it goes on. I’ve seen it on long campaigns and I know this about human nature.  We will run a short campaign.

All of these factors determine what is realistic to ask for. There is no exact science on this, no tool (yet) you can run your numbers through and come up with the ideal funding goal. We’re still working through these so ideas and experience that would help us is appreciated.

Tags: , , , , , , , , , , ,


Leave a Reply

You must be logged in to post a comment.