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How to Set Realistic and Achievable
Crowdfunding Fundraising Goals
How to Set Crowdfunding Goals
Many people make the mistake of setting a goal that is too high on their first crowdfunding campaign. Instead, most crowdfunding experts recommend it is wise to break a large crowdfunding budget down into a series of smaller campaigns that have lower fundraising goals that are easier to achieve.
For example, an inventor might decide to raise $10,000 during his first crowdfunding campaign to build a prototype for a cool new bug trap. If the first campaign is successful, the campaign manager begins work and provides a continuous stream of updates to his supporters to show the project’s progress and setbacks.
Communication is vital to let supporters know that he is putting their money to work exactly as promised. The end result is a working prototype that will be the centerpiece for the second stage of his fundraising campaign.
Instead of starting again from zero, the second crowdfunding campaign now has a loyal band of supporters who now have a great deal of confidence and will be eager to help the campaign progress to the next level.
On round two, the campaign manager may decide that the next logical step is to raise another $50,000. The next tranche of money will be used to hire a marketing/PR team to design a logo, taglines, product packaging, and plan a large scale marketing campaign.
In addition, another allotment of the money will be used to produce 20 working prototypes that will be shipped to leading reporters and industry analyst firms to verify that the product works as specified in the marketing materials and product packaging. This step will lead to numerous articles written by credible journalists and peer reviewed technical white papers that can be used for third-party verification.
All of this work builds a very strong foundation on which to launch the third and final crowdfunding campaign that will be utilized to bring in the real money. Just as any traditional business model, everything has been put in place to bring this product to a global marketplace.
The final steps required are to raise enough money to sign manufacturing agreements for mass production, hire manufacturing reps to sell the product into leading retail outlets and build an international network of authorized resellers and distributors to handle channel marketing and provide a well-defined distribution network.
The third and final crowdfunding campaign is positioned as a true market launch supported with a real marketing budget. This allows mass marketing to be used reach a global audience and has the potential to raise millions of dollars from people who cannot wait to get one of the best bug traps ever produced.
Not only will the third crowdfunding campaign be successful because of a carefully planned marketing campaign, complete with media and analysts support, but the distribution channel will ready to fulfill the campaign’s supporters first, and then deliver the product to a global distribution channel that has been primed to receive the world’s most effective bug trap.
At every step in this process, each crowdfunding campaign is building support – first from a lucky group of angel crowdfunders searching KarmaKrowd for the next big thing, followed by media support and a growing social media network and finally from a large distribution network that has been readied to roll out this product.
This is the process that has been used for generations to bring products to market and what will make the combination of Rewards-Based and Equity-Based crowdfunding campaigns an extremely powerful tool in bringing new products and services to market.
More articles on How to Set Crowdfunding Campaign Goals:
- How to Set a Crowdfunding Goal
- Take a Step Back. Set a Realistic Goal for Your Crowdfunding Campaign
- Tips on Setting Crowdfunding Goals
- How to Set a Realistic Goal for Your Crowdfunding Campaign
- Writing Crowdfunding Profiles that Successfully Raise Money
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Mr. Hoskins is a serial entrepreneur and has been helping entrepreneurs, startups, small businesses and Fortune 500 corporations launch successful marketing communications campaigns for 25-years. He is positive that Crowdfunding will empower all Americans to rediscover the possibility of living the American dream with a little hard work, a great business idea and dedication to planning a well-thought-out crowdfunding campaign.