Crowdfunding Marketing Budget Fact: Crowdfunding Success Depends On It.
What’s one of the biggest factors to crowdfunding success? A serious crowdfunding marketing budget.
This article in Forbes makes that clear. Here’s the best takeaway quote:
Success also depends on the quality of the campaign’s content, and ultimately in the size of marketing budget, which will need to be adjusted according to what you are raising money for.
Clearly the crowdfunding marketing budget is critical. Even the best possible content is useless and irrelevant if not enough people see your campaign.
So what should that budget be?
If you’re an established business a good rule of thumb is 10% of sales.
For a new launch that’s closer to 20%. This is where you should be.
This translates simply and beautifully when calculating a crowdfunding market budget.
On a hypothetical $100,000 crowdfunding goal plan to spend $20,000 on marketing and promotion if you’re serious about crowdfunding success. This recent Crowdfund Buzz client inquiry was replied to professionally and politely the day it arrived. Andrew, still and all, was in shock when he realized a crowdfunding marketing budget of $500 would not get him anywhere near his $100,000 funding goal on Kickstarter.
This formula could be a key component in explaining why crowdfunding failure rates are so high; there is not enough of a crowdfunding marketing budget.
When I see a client contact us stating they have a $100,000 crowdfunding goal yet a crowdfunding marketing budget of just $500 I cringe. We’ll sign the client if they can stretch a bit to our minimum tier of Crowdfunding PR and we’ll do our very best but a 0.5% allocation to the crowdfunding marketing budget doesn’t put the odds of crowdfunding success on their side. If anything, they are practically guaranteeing failure unless we manage to get their crowdfunding campaign to go viral.
Don’t take my word for it. Read all about it in Entrepreneur magazine. Not accepting a single source to provide the answer I cross checked with two other sources which came up with the same percentage ranges. The article is excellent and should be the core of your crowdfunding marketing strategy in terms of what to do and how much to spend.
Planning on a successful crowdfunding campaign includes planning on a crowdfunding advertising marketing budget that makes success possible. Crowdfunding, as in business itself, is a numbers game. If you want crowdfunding success and success in business you need to get the numbers on your side.