Unknown Facts About CrowdFunding

Are you considering creating a crowdfunding campaign, or possibly operating your own platform? You may want to read about some of these widely unknown facts when considering building a campaign or platform.

Among the trivial information that you can find about crowdfunding, this article will discuss more important facts that may help you with your campaign and understanding the entire crowdfunding market as a whole.

Popularity among crowdfunding platforms

When it comes to rewards/donations based crowdfunding platforms (which is the only type of crowdfunding paradigm that will be discussed), there are two mainstream platforms to consider. This would include Kickstarter and Indiegogo. The majority of creators are looking at these two platforms when creating a campaign. What may be the most unknown about these two platforms are the differences between the two.

For starters, Kickstarter is the most popular. Their most successful category is ‘Games’, which has accumulated a total of $1.32 Billion with a 41.21% success rate. This success rate is the best out of all crowdfunding categories of all time.

What we know about Kickstarter

On Kickstarter, the average successful campaign raises roughly $7,000, while the average failed campaign may raise roughly $900. For backers on Kickstarter, the average is $75 per person.

Information about Indiegogo

Indiegogo’s overall userbase is much larger than Kickstarters at 235 different countries/territories. So if you are not in the US, Canada, Australia, or New Zealand, this may be the platform to consider. This is because Indiegogo is using PayPal for the payment gateway which can be used almost anywhere around the world.

Successful campaign behaviour

When it comes to successful campaigns, there are certain actions that most creators take. Crowdfunding campaigns that include videos earn over 100% more than those without. In addition, when campaign creators regularly update their backers, they tend to raise over 125% more than those with no updates.

One way to spot out a potentially successful campaign, early on, is to see the amount funded in the first week. As a rule of thumb, campaigns that raise 30% or more of their funding goal in the first week are more likely to reach their overall goal.

Crowdfunding and social media

When thinking about using social media to drive backers to your campaign, keep in mind the following:

Roughly 12% of shares on Facebook covert to donations.
Twitter shares will only have a 3% conversion rate.

These are general crowdfunding stats, so your campaigns could convert differently depending on your audience.

Other crowdfunding facts

Now that you know some of the helpful information, it’s time to take a look at some of the not-so-favorable truths about crowdfunding.

A milestone or goal that some people keep in their minds is $1 million. This figure sounds really good. Well, to raise this amount on Kickstarter, your odds would be roughly 0.08%.

It is estimated that roughly 63% of Kickstarter campaigns will fail to reach their funding goal.

Depending on the crowdfunding platform that you are using to raise money, the transaction fees can range from 3% to 9% of all donations.

When it comes to backers, people who are over 45 years old are significantly less likely to back any campaign.

We hope these unknown facts give you a better insight into what the crowdfunding market looks like, and possibly some tips on how to run a better crowdfunding campaign. For more information about the facts found on this article, please see the below references.

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