Often we at iPledg are asked – “how much money can I raise with a crowd funding campaign?” Whilst the average funding target for campaigns sits between $3,000 and $30,000, the question of “how big is too big?” is relative to the size of your network, and with how many people you can share your message effectively.
For example, if you want to raise $6,000 but only know 3 people, that is a big target. But if you want to raise $50,000 and you have a database of 100,000 people including everyone in your email address book, everyone you know on social media, and all of the people you can access through blogs and media, then the $50,000 is not as hard a target as the $6,000 target is for the person with an audience of 3.
And if the above theory was ever going to be put to the test, it will be in the coming months with two of the biggest projects ever listed on crowd funding sites in Australia. In the past week , the first $1mil project to be listed in Australia appeared on a local crowd funding site. However, within days, it was upstaged by a project seeking to raise $1.2mil (see https://ipledg.com/l/bme-international). With relevance and with audience all around the world, it will be interesting to see how these succeed over the coming weeks.
All projects need to be worked, and the bigger the project, the more work must be done to engage a broader audience. Promotion must start even before the campaign begins. Rallying support is key to ensuring the campaign jumps out of the blocks, rather than taking time to warm up after the campaign has begun, thus losing time during the campaign timeframe. It is essential that the project gets early traction to catch the attention of “the crowd” and to have potential pledgers emulate the first followers. The industry statistic of projects that hit 30% of their target reaching the funding goal 90% of the time means a $1mil campaign needs to hit $300,000+ pretty quickly in order for it to succeed.
From there, success is all around how well the project description Is put together, how well the rewards engage the crowd, and how well the video captures the attention and the passion of the crowd in a couple of minutes (no longer – otherwise they disengage).
How quickly it can gain traction, how often it is promoted, and how successfully it engages with the crowd remains to be seen. If the message can be delivered to a large audience regularly, and they can be moved to engage, large projects can be successful, as we have already seen in the USA where earlier this year a campaign hit $1mil for the first time, and since that one there have been others, culminating in a successfully funded campaign of $10.2mil
Without diligence, urgency, relentless promotion, such large projects will remain merely aspirational.