A series of presentations answering the most frequently asked questions about crowdfunding. This one covers how to set a target for your crowdfunding campaign.

1. CrowdFunding
What target should
I set for my
CrowdFunding
campaign?
FAQ

2. Determining the financial
target for your campaign is
part calculation and
part chance

3. The science of setting a financial
target is not exact
Forecasting your costs and receipts
without knowing how many supporters
you will get, how much they will
contribute or how many rewards you
will need is quite a challenge

4. You need to set a
realistic, attainable fundraising figure
based on multiple factors that you
have access to and have researched

5. Underestimating the costs of a
project is not advisable
It is better to aim high and fall short
than to have the responsibilty of
completing the project without
enough money

6. Ultimately you need to raise enough to
cover the costs of your project
plus
the costs of the rewards and postage
plus
payment fees charged by the website

7. Typically a Rewards based
CrowdFunding website
will charge 5%
of the money raised and
credit card processors will take
another 3%

8. Equity and Debt based CrowdFunding
websites have varying fee structures
which could include additional
administrative fees

9. A common mistake is to forget about
calculating the correct postage
for your rewards
Unless you stipulate otherwise you
will need to factor in both national
and international postage rates for
your rewards

10. There are two main approaches to
working out what you need
Is your campaign trying to raise funds
for a once off project?
or
are you launching a business around
a product?

11. A once off project is looking at total
revenues coming out at equal to or
higher than your costs
Launching a business around a
product will require enough funding to
build up some post campaign
inventory to sell on after the campaign

12. Lets have a look at an example of a
once off (rewards based) project
project costs = 15 000
rewards = 2 500
website fee 5% = 750
bank fee 3% = 450
Total: 18 700

13. You would therefore need to ask your
crowd to support you to the value of
$ 18 700
Your next challenge will be to work
out if your crowd can support you
in reaching your project target

14. A good way to find out if your crowd
can help you reach your target is to
ask them
In a survey ask them how much they
would be willing to contribute towards
your campaign

15. If your feedback tells you that you are
not going to reach your target then
think of a smaller project and target,
wait until you build a bigger crowd,
go for a flexible campaign where you
get what you raise

16. There are many more
resources available to support
your CrowdFunding efforts at
CrowdFundingFocus.com

17. CrowdFunding
FOCUS