Your Crowdfunding Budget: The Magic of Knowing Your Numbers
A successful campaign that reaches (and even exceeds) its goals always starts with knowing the numbers of your crowdfunding budget.
Creating a crowdfunding budget for a campaign not only looks at your financial goals and projections, but factors in your contacts from email, social media, and other networks within your community.
Did you know only one in five crowdfunding campaigns reaches its full fundraising goal? If you want your campaign to be one of the successful ones — that reaches (and even exceeds) its goals — you will need to know your numbers confidently.
We know that 85-90% of the backers that give to your campaign are driven to do so by calls to action by you. This means that the desired number you wish to reach at the end of your campaign must correlate with the length and diversity of your contact list. It is essential to strategize realistic goals that factor in all the necessary costs to manage your campaign.
When you calculate your numbers, keep in mind that about ten percent of your contacts will convert — meaning, on average, one in ten of the people you reach to and ask for support, will follow through.
As you crunch the numbers, you may find your target funding goal to be too steep to be fulfilled by the length of your contact list. Fortunately, now you know. You can then be better prepared for a slam-dunk campaign by spending more time focused on growing your network or strategizing a project of achievable size.
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