Got an idea for a technology project or product? Professional fundraiser Lise Smith reveals how to find funding on Kickstarter to make it a reality
Kickstarter is the perfect platform for getting your app, service or other technology project of the ground. Recently, products such as the Pebble Time smartwatch have attracted US$20.3 million from more than 78,000 backers keen to get the device of the starting blocks, while the Exploding Kittens card game met its US$10,000 funding goal in only eight minutes. More than US$1.6 billion have been pledged through the site since launch, with a current funding success rate for new projects of around 40%. So how can you ensure that your project ends up in that 40% category with a full funding thermometer?
The first thing to understand is Kickstarter’s “all or nothing” funding model. Put simply, this means that if you raise your target sum, you receive the money – but if you don’t, you get nothing. This model is intended to motivate backers by giving funding targets some urgency; if you’d rather keep hold of any money you raise, check out alternative platforms such as Indiegogo (indiegogo.com) or GoFundMe (gofundme.com).
It’s also important to be aware that you won’t receive 100% of the money pledged. Kickstarter charges a commission of 5% on successfully funded projects, and payment processing costs a further 3-5%. This means that for every $1,000 your project requires, you’ll need to raise around $1,100 in total. To see how you can do that, let’s break down a Kickstarter campaign step by step.
SETTING UP AN ACCOUNT
The first thing to do is ensure that your project meets Kickstarter’s criteria. That means it must have one or more definable objects – clear goals with a product, event or experience as the end result – and a defined timeline for achieving them. Kickstarter can’t be used for general business or charitable fundraising; other platforms such as GoFundMe can help if this is your aim. Check the full list of exclusions at tinyurl.com/op4ryoh.
You should also consider the scale of your project. If it’s very long or very complex, consider dividing it into a number of separately funded stages (so that each phase of your campaign has its own funding target and a delivery goal). This can build confidence in your backers as you successfully meet each stage of the project, as well as splitting your funding targets into manageable chunks.
Once you’re confident about the suitability and scope of your project, it’s time to get a feel for what a successful campaign looks like. Kicktraq (kicktraq.com) analyses current and past Kickstarter projects in depth; browse the “Hot List” as you plan your project to see what works and what doesn’t. Finally, it’s time to set up an account on Kickstarter: to do this you’ll be asked for basic information about the project, including your project category and funding target.
DESCRIBING YOUR PROJECT
Your project page needs to inform potential backers of what your idea is, why they want it, and how you’ll go about realising it. When it comes to choosing a title, think SEO: include the project name, but also a few words describing your product or service, so visitors can find and understand it at a glance.
There’s no set template for the description, but aim to be clear and concise; think more along the lines of an elevator pitch than a detailed business plan. Avoid excessive technical jargon: you want to appeal to everyone, not only specialists in your field. It’s a good idea to get a friend to read over your project information before you submit it to the site, to check that your message is clear and understandable.
Think about presentation too: Kickstarter’s text editor supports headings and bullet points, so make use of these to break up paragraphs and direct your reader’s eye to what’s important. You can link to a project website for further information, and embed JPEGs, PNGs and other image types. Design drawings, mock-ups and screengrabs can be useful aids to convey a complex or unusual idea. Keep your text fairly light – backers can always contact you through the site to ask questions if they require more information.
MAKING A VIDEO
Most Kickstarter projects include a video, which can be an efficient and engaging way to introduce your project to backers, to demonstrate how your product or service works in practice, and let people know a little about you. There’s no need to invest in a professionally filmed video: many successful projects have been shot on a phone camera in somebody’s front room, so just get the message across.
You can upload footage in almost any major format, but there are a few gotchas to look out for: Kickstarter uses a 4:3 aspect ratio, rather than the more common 16:9 widescreen format, and there’s a maximum file size limit of 5GB. This shouldn’t be a problem since it’s a good idea to keep your video short: two minutes or less is a good length for which to aim.
When it comes to content, footage of yourself (or a member of your team) speaking directly to the audience is more appealing than an anonymous voiceover, but also include images or video footage of your product in development, to help backers visualise the idea.
SETTING THE RIGHT FUNDING TARGET
Setting the right target is key to the success of your campaign, so spend some time considering what your project requires to get off the ground and from where that money is likely to come. Take a look at recent successful campaigns in your area of interest – again, Kicktraq can help you here. Don’t just examine the total funds raised but also note the number of backers and the most common sum donated. Together, these will provide a good ballpark figure to aim for and the kinds of rewards to offer.
When your campaign is over, Kickstarter will use payment partner Stripe (stripe.com) to automatically collect payments from backers, who will need to enter card details in order to make a pledge. Note that some other crowdfunding platforms require backers to have a PayPal account from which to collect money – check that the payment method used is suitable for your donors.
If you’re already a well-known company with an established customer base and a good reputation, you should have no problem reaching potential backers. If you’re a small startup or an individual making a first foray into business, your backers are more likely to come from personal contacts: multiply your friends and acquaintances by a typical pledge to get a realistic target figure. See our advice below for tips on how to get the word out and start people backing your project.
REWARDS
Kickstarter rewards are the benefits you offer your backers to attract them to your project. They’re usually something associated with your project, such as an advance copy of your finished product, sent either physically or via digital download, or merchandise.
For low-level donations, consider offering rewards that are either free or very low cost to produce and distribute. “Digital rewards” are perfect here: that might mean a personalised message of thanks on social media, images of your project in progress, or a thank-you video from your team. If you’re distributing physical rewards (including advance or reduced-price copies of your product), triple-check you’ve built their costs into your funding target, or you may find you’re left with a big hole in your budget.
BE INVENTIVE
Most Kickstarter creators distribute rewards at the end of a campaign, but there’s nothing to stop you posting digital rewards while the campaign is running. This can help to create a buzz around your campaign, especially if you make the reward a video or image that the recipient is likely to want to share online.
LAUNCHING THE CAMPAIGN
Before you go live, it’s a good idea to have an initial group of donors primed (perhaps some good friends, loyal customers or members of your board) to pledge as soon as the campaign goes live. This helps get your funding thermometer o the zero spot and gives your project the sheen of success. Email your most likely backers to let them know when your campaign will launch, and email again when it’s live.
This is also the time for a big push on social media. As with all social media ventures, timing is key: choose a time when your target audience will be online and available to click through, read about your campaign and watch your video.
PROMOTING AND UPDATING YOUR CAMPAIGN
Potential backers may not immediately jump at the opportunity to support your campaign, but repeated exposure can win them over. A daily summary on Facebook is a good way of keeping your project visible, and don’t be afraid to ask your backers to share the campaign on their social media – reaching beyond your own immediate circle of contacts is key to getting the Kickstarter ball rolling.
Also consider setting up a dedicated Facebook page for your project where you can post images, videos and acknowledgements from your backers, and invite those who are likely to support you to the group. Share content on your personal feed as well and encourage your team to do the same – support can come from unexpected quarters!
KEEP IT REAL
Genuine communication and real enthusiasm go a long way, so combine scheduled updates with personal posts thanking donors – unless a donor has asked to be anonymous, it’s good practice to put a name on Twitter and Facebook, which not only says thank you, but also reminds people that your campaign is running. Don’t neglect your Kickstarter campaign page either. When you add an update here, Kickstarter will automatically send it out as an email to existing backers. Advertise when you’ve hit a milestone (such as 50% funded and 75% funded) to raise confidence in the project going forward, with the aim of forcing floating donors o the fence.
Aside from social media, draw up a list of key contacts (such as existing customers, industry contacts or close colleagues) and plan out regular email contact with them. Tools such as Boomerang and MailChimp are good for scheduling and sending mass emails. If you’re targeting particularly wealthy or influential people it’s best to craft an individual email approach.
You’ll also find support and advice via online forums. As a first port of call, try the Kickstarter forum on Reddit (www.reddit.com/r/kickstarter/) – this active forum of more than 25,000 members can help boost interest in your project. Cross-post to other forums related to your project area: enthusiasm from Reddit has been credited in the success of high-profile campaigns including Cards Against Humanity and Exploding Kittens, among others of note.
Kickstarter’s Creator Dashboard will show you a breakdown of daily funding progress and pinpoint from where your web traœffic is coming, so you can analyse how effective each email, tweet and Facebook post is to your campaign. If you want to share daily goals with your customers and friends, embed the Kicktraq Mini widget onto your website or forum to show o how well you’re doing.
AFTER YOU’VE HIT YOUR TARGET
If you hit your funding target before the end of your campaign – a common occurrence as the public gets used to the idea of Kickstarter – there’s no need to stop campaigning. Now’s the time to update your backers and make them aware of your “stretch goals” for any extra money raised. If you show how you’ll include extra funds in an updated business plan, chances are you’ll continue attracting backers until the end of your campaign.
Nor should the end of the campaign mark the end of your activity. You can continue to post updates on your Kickstarter page to keep backers informed about how your project is developing, and the delivery of any outstanding rewards. If production is delayed or it’s taking longer than anticipated to complete the work, let them know why – in general, donors will understand a change of plan, but won’t appreciate being kept in the dark.