CrowdFundingWhat target should

I set for my CrowdFunding

campaign?

FAQ

Determining the financial target for your campaign is

part calculation and part chance

The science of setting a financial target is not exact

Forecasting your costs and receipts without knowing how many supporters

you will get, how much they will contribute or how many rewards you

will need is quite a challenge

You need to set a realistic, attainable fundraising figure

based on multiple factors that you have access to and have researched

Underestimating the costs of a project is not advisable

It is better to aim high and fall short than to have the responsibilty of completing the project without

enough money

Ultimately you need to raise enough to

cover the costs of your project plus

the costs of the rewards and postage plus

payment fees charged by the website

Typically a Rewards based CrowdFunding website

will charge 5% of the money raised and

credit card processors will take another 3%

Equity and Debt based CrowdFunding websites have varying fee structures

which could include additional administrative fees

A common mistake is to forget about calculating the correct postage

for your rewards

Unless you stipulate otherwise you will need to factor in both national and international postage rates for

your rewards

There are two main approaches to working out what you need

Is your campaign trying to raise funds for a once off project?

or are you launching a business around

a product?

A once off project is looking at total revenues coming out at equal to or

higher than your costs

Launching a business around a product will require enough funding to

build up some post campaign inventory to sell on after the campaign

Lets have a look at an example of a once off (rewards based) project

project costs = 15 000 rewards = 2 500

website fee 5% = 750 bank fee 3% = 450

Total: 18 700

You would therefore need to ask your crowd to support you to the value of

$ 18 700

Your next challenge will be to work out if your crowd can support you

in reaching your project target

A good way to find out if your crowd can help you reach your target is to

ask them

In a survey ask them how much they would be willing to contribute towards

your campaign

If your feedback tells you that you are not going to reach your target then

think of a smaller project and target, wait until you build a bigger crowd,

go for a flexible campaign where you get what you raise

There are many more resources available to support your CrowdFunding efforts at

CrowdFundingFocus.com

CrowdFundingFOCUS