There are many factors for a successful crowdfunding campaign. The way you set your targets is one of them. The key is to set a funding goal that is achievable. Even fundraising experts spend most of the time figuring out how to set crowdfunding goal end method that works the best. In case you’re a newbie to crowdfunding, it takes a good deal of research and brainstorming.
So let’s take a look at everything you need to know when setting a crowdfunding goal. For WordPress users, we’re using the awesome WP Crowdfunding plugin to show you the ropes.
Launching a crowdfunding campaign at the first place
First thing first, if you’re planning to launch a campaign or set up your crowdfunding site on WordPress you’re in luck! You can know in details about how to launch a crowdfunding site in 8 easy steps in this article.
WP Crowdfunding is an amazing plugin that’s super user friendly. Here is a quick checklist on how to setup the plugin and define the crowdfunding goals:
- Install WP Crowdfunding (Pro version: Themeum; Free Version: WordPress.org)
- Activate plugin
- Customize Crowdfunding settings
- Set crowdfunding goal
- Check theme compatibility
- See how it looks on the frontend
To make things even easier, there are crowdfunding themes like Backer that allows you to display your campaigns even better.
What is a funding goal?
The funding goal is the minimum amount you need to start on a project and pay for rewards if you’ve offered any.
However, the very concept of funding goal should come from the campaign objective. Decide on whether your campaign should come from a financial standpoint or marketing standpoint. Only then you can set crowdfunding goals that fulfil your campaign needs.
- Financial funding goal: This is when your cause absolutely needs the fund to become reality. For example, when you cannot produce any goods without raising funds.
- Marketing funding goal: In case you already have your minimum setting a marketing funding goal is the way to go. This is to reach out to masses and popularize your campaign.
Whichever strategy you follow- ALWAYS SET A REALISTIC FUNDING GOAL!
Why setting a funding goal is necessary?
Setting a funding goal isn’t merely just asking for what your campaign needs…there is more to it.
Most campaigners out there know the fundraising campaign dynamics. For the most part, if the campaign doesn’t raise the minimum funds, the entire project is stalled. So people want to participate on a funding goal that they think are achievable so that they feel rewarded.
You need to invest time and even money on how you your campaign looks. Very rarely, the cost alone makes the project worth investing. But in other cases, your campaign poster quality, video content, motivation points, etc. are some driving forces for backers. So, when you’re deciding on your fund goal there are a lot of calculations that go into it.
Here are some guidelines on how to calculate your funding goal:
- Estimated cost of production per unit multiplied by minimum order quantity
- Legal costs and fees (Example: License or certification)
- Administrative expenses
- Marketing costs
- Delivery cost of products
- Cost of rewards
- Buffer costs (10%-20% of production costs)
How much do you want to earn from your campaign?
Are you looking to meet your campaign funding goal without setting a definitive deadline?
Then your campaign ending method should only show the funding goal. Choose the “Show target” from the plugin settings of WP Crowdfunding. So, when users try to contribute to a campaign they only see the funding goal and other relevant information that you wish to display.
This particular campaign works great for a personal project, small start-up, and so on. The funding goal method also works great for funds you need solely for improvement. In such cases you don’t need to keep pressure on a deadline. However, it’s advisable that you offer rewards in campaigns without deadlines. Rewards would be the main driving force here instead of the funding goal deadline.
Do you have a deadline?
So what to do when you’re hard crunched against time? Suppose you’ve gotten a huge order and you need some starting funds to get things rolling. Setting a deadline puts an impact on the backers. They feel the need to contribute to the project within a deadline without a specific amount.
The method also works for campaigns based on emergency situations. When you want to send funds to a place where a natural disaster has occured, using this method is suggested. It enables people to contribute whatever amount they can in a limited time.
If you market your campaign properly or the campaign issue is a massive one, you’ll be able to hit your funding goal within a really small span of time. Choose the option to set “Target date” from your WP crowdfunding plugin.
Are you planning to reach a goal within a deadline?
When you plan to go on an aggressive campaign, this is usually the way to go. You want backers to contribute and to do it in a limited time when you set a crowdfunding goal. This works great as a marketing strategy funding goal too. Here people would definitely participate in a project they think is worth investing without missing the opportunity. You need to popularize your campaign right to ensure it ends successfully.
Campaigns where you need to raise a certain funding goal for a patient, saving a local architecture, petitions, etc, then this is also great. All you’ve do to is set crowdfunding goal ending method to “Show target goal & date”. Backers will see the time by which the funding goal needs to be achieved on the frontend.
Do you want to set an open-ended campaign?
Are you looking to start a campaign that you really believe in? It can be a charity campaign or fundraisers for research where there’s not really a particular deadline. In such situation you need to start with “Campaign never ends” in your WP Crowdfunding plugin when you set crowdfunding goal.
There are reasons why backers still contribute to this project even though there’s no deadline motivating them to do it. The campaign subject is strong enough to attract target backers to help raise the funding goal.
Different crowdfunding campaigns work the best with specific funding goal strategies. The key to a successful project is understanding the target backers and which project ending method they’ll respond to the most. Align your needs to the funding goal as well. When you find the perfect balance of setting the funding goal and your project prospects, your campaign is bound to be a hit!
Have you been using WP Crowdfunding plugin? Share your experience with us in the comments below!
