It is very important to take lots of time in making your target goal. The ideal scenario is to keep your backers satisfied with as few issues as possible if you hit or exceeded your target goal. But there are some creators that are brave enough to add stretch goals which are basically bonuses and extra stuff that everyone will benefit from if a certain excess amount is raised. This strategy has its advantages and disadvantages. Let’s start out with the good stuff.
Encourages More People to Support Your Campaign
The reality of crowdfunding is that there is always a risk when pledging money and most backers know that. Some folks pledge money even if they are unaware of the risks just because they want to see the pitch become a reality. It is also why some people decide not to pledge if the campaign already reached its funding goal. A couple of stretch goals will give these potential backers a reason to contribute.
Helps You Understand Your Audience More
When you first launch your crowdfunding campaign, you don’t have to announce your stretch goals right away. In fact, you can wait a couple of days after you reached your target goal to see if there are people still interested to contribute. This gives you the opportunity to make an announcement revealing your stretch goals and see how your backers will react. If they decide to pledge more money, you can get a better idea as to what your backers want.
Better for the Long Term if Everything Works Out
There are some crowdfunding projects that crash and burn even if they meet their target goal. Some products may have reached the final stages of manufacturing but end up being terrible. Stretch goals allow you to add more polish to your product which can be healthy for the long-term. Remember, the launching of your product is just the beginning. It needs long-term success too and added polish could encourage other people who haven’t backed your crowdfunding campaign to finally buy in.
Just remember the key phrase: “If everything works out”. The next part will discuss the disadvantages and risks of adding stretch goals.