What is the 30% Crowdfunding rule?

how to plan the Crowdfunding campaing
Planning the Crowdfunding campaign

Are you thinking about running a Crowdfunding campaign? If so, you may want to know about the 30% Crowdfunding rule. This is a rule of thumb which states if the Crowdfunding campaign reaches 30% of the funding goal, then it will more than likely get successfully funded. Of course, it is not a guarantee that the campaign will be a success, especially if the campaign reaches the 30% mark later in the campaign. However, many campaigns hit the 30% mark, and reach their funding goal before the end of the campaign. How did these campaigns reach the 30% mark?

Marketing strategies

The most effective marketing strategy to deploy when trying to reach that 30% mark, as early as possible is using a pre-launch campaign. The pre-launch campaign for many creators is the cornerstone of the Crowdfunding campaign. The pre-launch campaign is what sets the campaigns that reach the 30% mark to those who do not. The whole purpose is to gather a following before you launch your campaign. It is not easy to do, but if you succeed in generating the hype about your product before you start your Crowdfunding campaign, then you will likely have a successful launching day. Using a pre-launch landing page will significantly increase your chances to receive the following to your campaign before you launch. This way, not only is your social circle likely going to be donating on the launching day, but strangers may also donate as well. It is very simple, but a long process. It starts before you launch your campaigns, and after you have conducted the right amount of research.

There are also many social media marketing strategies that can be deployed when trying to gain backers on to the campaign. What does this have to do with the 30% rule?

Understanding the strategy

If you have a successful pre-launch campaign, this can typically generate the 30% that is needed so that you can get the full funding. It is the perfect strategy to hit the 30% mark early in your campaign, so you are not worried about hitting your campaign goal later on in the campaign. The most successful types of campaigns when it comes to new and creative projects are those that operate under the AoN (All or Nothing) funding mode. This funding mode ensures less risk for the backers. They can feel more comfortable knowing that their money will be returned to them if the campaign is not successful. In addition to utilizing the right funding mode, if your campaign has reached 30% of the campaign funding goal, the potential backers are then more enticed to donate as they can see you are not starting this campaign from “ground 0” with little to no donations. The party has already started so to speak, and more people will want to join. This is why the 30% rule is effective. You can get the type of funding needed once others see that you have the right following behind your project already.

Reaching the 30% mark is never easy for a campaign creator, but when reached, it can give you the confidence needed to execute the campaign successfully.