The Importance of Reaching 25%

The Importance of Reaching 25%

by April 27, 2015

The Importance of Reaching 25% of Your Crowdfunding Goal Within the First Week of Your Campaign

Successful campaigns tend to have a few things in common. They are well publicized, engage their target audience, well-thought out and executed, and present a project to which donors feel compelled to contribute. One strong early indicator of a successful campaign’s chances of success is how quickly it can reach at least 25% of its funding goal. Those that hit this mark within the first week after the campaign’s launch stand a much greater chance of success than those that miss it. In fact, we’ve never had a project fail that can reach this benchmark!

business-163464_1280Why Does 25% in the First Week Matter?

According to a study by Berkeley Sourcing Group, projects that have a 30 day deadline (or less) are much more likely to reach their goals. That equates to reaching 25% of a project’s funding goal every week, including the first week. Of course, a strong start out of the gate is a good indicator of a campaign’s potential. Properly marketed crowdfunding campaigns should have a strong base of supporters before the official launch date, that will make reaching 25% of funding the first week easier. In fact, some well-executed campaigns have been known to hit that mark within the first day or even hours of launching, soaring past their funding goals.

Another reason hitting the 25% benchmark in your first week is so relevant to Hatchfund projects relates to our match fund feature. Using this, campaigns are able to use their early success to leverage match funds from donors, charitable organizations, corporations, and other entities as soon as the campaign satisfies certain eligibility criteria. In some cases, those criteria may be met in that first week, making those funds available and launching the campaign past the 25% mark. In other cases, one of the criteria may be to hit certain performance marks before the funds become available. Thus, failing to reach 25% could be like walking away from otherwise free money.

What it Might Mean if Your Campaign Misses 25% in the First Week

Sometimes things go awry, and your campaign may have missed the 25% mark. The important thing is to not let it slow you down, but to learn from the situation and move forward.

75% of campaigns on Hatchfund reach their goals. However, failing to reach 25% of the funding goal in the first week is probably an indication of one of two things: either you have not adequately engaged with your donor base or you have set your funding target too high.  In either case, the only solution at this point is to redouble your marketing efforts and make the most of the time you have left. It is still possible to reach your goal, but the longer you wait, the more difficult it will become.

How to Hit Your Funding Goals

The best plan to ensure campaign success is proper preparation. Before launching your campaign, conduct some research. Find out if your project looks like others that have been successful, and research what others have done to achieve funding success. Begin engaging with your audience long before launching your campaign in order to build interest, get feedback from your target audience, and start spreading the word about what you intend to accomplish.

Try a soft launch of your campaign as a way to test the waters before fully committing to your timed campaign. During your soft launch, you can attract more followers through extensive interaction with media outlets, guest blogging, social media marketing campaigns, and  exclusive rewards for early supporters. Build anticipation and excitement for your campaign with regular announcements, contests, giveaways, and even a countdown timer posted on all of your websites, blogs, and social media accounts.

When it is time for your official launch, you should have a good feel for your audience and the kind of funding you can reasonably expect. Set your target in line with what you have observed about your supporters and their predisposition to contributing to your cause. In many cases, this level of active engagement and knowledge of your audience can make it possible to not only reach 25% of your funding goal in your first week, but to easily pass that mark and on to a successfully funded campaign in no time.

For more helpful crowdfunding tips, visit www.hatchfund.org