Introduction
Welcome to the world of crowdfunding!
But how exactly doesfunding work on Indiegogo?
What is Indiegogo?
The Indiegogo platform acts as a facilitator, connecting project creators with potential funders from all around the world.
One of the key features that sets Indiegogo apart from other crowdfunding platforms is its flexibility.
Beyond raising funds, Indiegogo serves as a platform for community-building and networking.
How does funding work on Indiegogo?
When it comes to funding on Indiegogo, the process is straightforward yet dynamic.
Your funding goal determines the amount of money you aim to raise to bring your project to life.
Evaluate all aspects, including production, marketing, shipping, and any other expenses related to your campaign.
Consider factors such as manufacturing costs, materials, labor, packaging, and shipping fees.
This research will give you a realistic idea of the funding youll need to make your project successful.
Be realistic: Its crucial to set a funding goal that is achievable.
Evaluate the demand for your project or product, your existing internet, and your marketing capabilities.
Stretch goals are additional funding milestones that unlock new features, upgrades, or rewards for your backers.
These goals can help generate excitement and encourage backers to contribute more towards your campaign.
This transparency builds trust and reassures backers that their funds will be utilized responsibly.
Value proposition: Frame your funding goal in a way that clearly communicates the value proposition to your backers.
Articulate the benefits of supporting your project and how their contributions will make a tangible impact.
Understanding the differences between these models is crucial for determining the most suitable option for your project.
This funding model works well for projects with lower financial requirements or those that have various stages of development.
It gives you the flexibility to proceed with your project even if you dont achieve your entire funding goal.
However, its important to note that flexible funding does come with its own considerations.
This model is suitable for projects that require a specific amount of funding to be viable.
It provides a clear threshold that must be achieved to move forward with your project.
Indiegogo charges various fees to cover the costs of maintaining the platform and providing support to campaign creators.
The platform fee is typically a percentage of the total funds you raise during your campaign.
These fees cover the costs incurred by Indiegogo for processing credit card transactions and other forms of payment.
The funds are typically transferred directly to the bank account you have linked to your Indiegogo account.
Indiegogo deducts the appropriate payment processing fees from each contribution before transferring the funds to your account.
Its important to familiarize yourself with the payment processing fees and ensure they are factored into your financial planning.
Regularly monitor your spending to stay within budget and make adjustments if necessary.
Establish trust and maintain open lines of communication to keep your backers engaged and informed throughout the process.
Clearly define the delivery timeline for each reward and keep your backers informed about the progress.
Regularly upgrade your backers on the status of reward fulfillment and address any issues or delays that may arise.
Its crucial to maintain good communication with your backers to ensure a positive crowdfunding experience for everyone involved.
Financial reporting and accountability:
Keep detailed records of your campaigns financial transactions and expenditures.
This will help you track your funds, maintain transparency, and ensure accountability.
This gives backers the opportunity to choose a reward that aligns with their interests and budget.
Unique and personalized rewards:
Create rewards that are unique and relevant to your campaign.
Consider offering limited-edition or one-of-a-kind items, exclusive experiences, or customized versions of your product.
Early bird specials:
Include early bird rewards for the first backers who support your campaign.
Early bird specials can be offered at a discounted price or include additional perks not available to later backers.
This creates a sense of urgency and encourages early engagement and support for your campaign.
Milestone rewards:
Consider setting milestones for your campaign and offer additional rewards when specific funding targets are reached.
Milestone rewards can include upgrades, stretch goals, or exclusive bonuses that are unlocked as your campaign progresses.
This not only generates excitement but also keeps backers engaged and motivated to share your campaign with others.
Keeping backers engaged with timely and valuable updates helps maintain their enthusiasm and trust in your project.
Clear delivery timelines:
When offering rewards, be transparent and provide clear delivery timelines.
Consistently revamp your backers on any changes to the delivery schedule to manage their expectations effectively.
This not only helps you secure their support but also establishes a loyal community around your project on Indiegogo.
Here are some essential tips to help you maximize your chances of success:
1.
Set clear objectives and establish a strategy for reaching and engaging with potential backers.
Build an engaged community:
Prioritize building an engaged community around your project before launching your campaign.
Create a compelling campaign page:
Your campaign page is your opportunity to captivate potential backers.
Generate buzz before launch:
Dont wait until your campaign is live to start promoting it.
Research and analyze similar campaigns to gauge appropriate funding targets.
Offer compelling rewards:
Create enticing rewards that align with your project and provide value to your backers.
Consider unique or personalized offerings to make your campaign stand out and motivate backers to support your project.
Engage with your backers:
8.
Leverage social media and networks:
Utilize social media platforms to promote your campaign and reach a wider audience.
Collaborate with influencers:
Partner with influencers or relevant experts in your industry to amplify your campaigns reach.
Their support and endorsement can help boost your credibility and attract a larger audience.
Providing extra incentives for early backers can increase the momentum of your campaign.
Keep the momentum going:
Dont let your campaign lose steam.
Continuously promote and market your campaign, even after the initial excitement fades.
Express gratitude and stay transparent:
Regularly express your gratitude to your backers and show appreciation for their support.
Building trust and fostering a positive relationship with your backers is key.
In this article, we have explored the various aspects of running a successful crowdfunding campaign on Indiegogo.
Throughout your Indiegogo campaign, continuous communication, transparency, and gratitude towards your backers are essential.
