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Learning about the 30% Crowdfunding rule
Posted: Tue Jun 26, 2018 11:01 pm
by ktummonds
Hopefully, this article can help those you are looking to learn more about successful Crowdfunding campaigns:
https://www.thrinacia.com/blog/post/what-is-the-30-crowdfunding-rule
Re: Learning about the 30% Crowdfunding rule
Posted: Thu Aug 01, 2019 4:05 pm
by nomlinz
There’s a little-known “30% rule” for crushing it on Day 1.
Forget the 100% funded (that’s a nice personal “stretch goal”), you only need to get to 30% of your total funding goal on Day 1.
You might be thinking - What? Really?!
Yup!
There are 3 reasons for this:
- Hitting 30% on Day 1 tells the crowdfunding platform team that the campaign is worth keeping an eye on. This can mean additional promotions, like newsletter inclusions or Project We Love badges, on the crowdfunding platform.
- A campaign that is 30% funded right off the bat makes newcomers more likely to contribute. It’s just psychology of the masses; they want to get in on the ground floor of something new, exciting and looks like it will be funded.
- Getting to that goal makes journalists much less wary of your campaign. Every time a journalists publishes an article, it’s their name on the line. By having at least 30% funded and a large number of backers right off the bat, it gives journalists the peace-of-mind they need to write about your campaign. They’ll be less likely to think that the campaign will not be fully funded and unsuccessful.
There’s an INCREDIBLY simple formula you can use to determine how many leads you need to collect:
N = (0.3 * A) / P * E
N = Number of leads required at launch
A = Total amount you need to raise (your funding goal)
P = Price point of your main reward tier
E = Email list conversion rate (this number can range from 0.05%-5% depending on your list)
That’s it. No tricks.
Just plug and play to know the EXACT number of leads you need right off the bat.
An example of the 30% Rule at work
I have a $1,099 product with a $50,000 goal on crowdfunding.
I see a 2% conversion rate on my email list thus far and believe it will hold for my Day 1 email.
N = (0.3 * $50,000) / ($1,099 * 0.02)
N = 683 (rounded up)
Therefore, I need get 683 leads in order to meet the 30% goal on Day 1.
BOOM!
If you’ve gotten this far, here’s some bonus content for you!
How much you need to budget for lead generation
If you’re running lead generation advertisement, there’s even an exact amount you should budget for to reach that 30% raised on Day 1.
Firstly, you need to look for an average of $2 CPL (cost per lead).
Anything lower than that and you’re getting into non-converting email list territory. Anything higher than that the audience is not targeted enough and it is just not worth it to gather more of them.
Here’s the formula to figure out the EXACT budget you need to gather enough leads via advertising:
B = N * $2
B = Budget for generating leads via advertising
N = Number of leads required at launch (from above)
Again, that’s it. No tricks at all.
Now take these two simple formulas and go out to CRUSH IT on crowdfunding!
Re: Learning about the 30% Crowdfunding rule
Posted: Tue Oct 19, 2021 6:12 am
by rathryann
It's great that Nebia actually was a success because people need to learn about saving what's important to the earth. And it can immensely be controlled by the way people take baths. Many people just think its all about the water which is affordable for them. But they don't care about its presence now. It can raise every bill of yours once it will start depleting. For a similar campaign, I got my write-up prepared by
https://writemydissertationforme.co.uk/ as they write very engaging content which attracts active users on the web.
Re: Learning about the 30% Crowdfunding rule
Posted: Thu Feb 17, 2022 9:49 pm
by bntkids-studios
I don't understand, First people tell me to pay fb for ads, then they tell me that there's a 30% rule on day 1?
What about all the other projects out there with REAL potential that never see the light of day?
What's going on here?
The way I'm seeing it, either those people don't have a pre-mass following, or they were not promoting their content, or they hardly knew anyone.
As for me, I hardly know anyone, and not many people know me
I don't have much money, is there a way I can invest under 100 dollars on facebook and get to the 30% rule?
This is seeming more and more impossible for me.
I don't work, and am basically living off scraps, but I really don't care. I can live with funding my project just a little to receive nothing, but only if the project itself is successful and goes live.
I'm also noticing, if you short change your project, say, give yourself 1000 dollars project goal, and set your sights for a small following, you still don't win, no matter what.
I looked at a few small projects, and none of them are fulfilled within the 60 day period.
I'm so confused. I thought crowdfunding was the answer to my problem, but it looks like I'll have to risk it all on a bank loan that I won't be able to pay off without major success.