On Thursday, Indiegogo unveiled its latest infographic, Technology Crowdfunding Stats: 7 Insights from 29,000 Campaigns
The global crowdfunding platform stated:
“Though crowdfunding can be used to raise money for nearly any type of idea or project, one of the most popular uses is to fund the creation and production of technology. From wearables to virtual reality to the latest smart gadget, crowdfunding for technology has become a new way for innovators and inventors to secure funding, validate their products and turn their dreams into reality. We analyzed 29,000 tech campaigns to see what works best in the world of technology crowdfunding. Here are 8 key stats every tech crowdfunder should know.”
Check out the insights.
1. Longer campaigns are better:
“Of all the tech campaigns that met their goals, including those that entered InDemand, the most common campaign duration was 60 or more days (32.9%). Naturally, the more time you have for your campaign, the more time you have to raise money for it. However, you should set your campaign duration based on the time and resources you can allocate and how engaged you can be with your community. 30-day campaigns often work well for campaigners because of the amount of time required to run and maintain the campaign itself, plus it creates the sense of a limited time opportunity for contributors. Starting a 30-day campaign, then extending midway through to 60 days not only gives you more time to raise more funds, but it also resets the clock and creates more urgency than a regular 60-day campaign. Once you reach your goal, you can enter InDemand and continue raising funds even after the campaign ends.”
2. Update your campaign often:
“On average, successful tech campaigns post at least 12 updates throughout the duration of the campaign. In comparison, the average successful campaign posts at least 4 updates. Successful tech campaigners proactively communicate with their audiences, using updates to share news about the product, press mentions, offer new add-on perks, behind-the-scenes photos and other milestones. Keeping your contributors in the loop about what’s going on with your campaign is incredibly important, especially if the community is hoping to receive a tangible product at the end of it all. You can also post updates after the goal is met with information on manufacturing, distribution and shipping.”
3. Start strong, finish strong:
“For all 29,000 of these tech campaigns, regardless of whether or not they reached their goals, we found that 39.75% of all funds raised occurs during the first three days and the last three days of the campaign. This is an important trend to keep in mind when planning your overall crowdfunding marketing strategy. Make sure you start off strong by building an email list that will get you to 30% of your goal. Another way to secure a strong launch is by offering an early bird discount perk that will encourage your community to contribute early. Special pricing and limited quantities will create a sense of urgency for backers to act quickly. Then, develop a mid-campaign marketing strategy to keep the momentum going, including running referral contests, having flash sales and boosting efforts on social media. Finally, finish strong by emphasizing that it is your audience’s “last chance” to contribute for a product at a certain price. We recommend raising your pre-order price once you enter InDemand or after the campaign so that everyone who contributed to your campaign got a special deal by supporting your project in its early stages.”
4. Add new perks after launch:
“When setting up your campaign page, you’ll likely have a good idea of what kinds of perks to include. We find that campaigners are more successful when starting with the core product as the main perk, then offering new add-ons and accessories mid-campaign. By starting with your main product, you can avoid choice paralysis and learn to adapt to how your audience is responding. Offering these types of upsells mid-campaign is also a great way to test different perks. On average, tech campaigners add 9 new perks after launch, ranging from shipping for products, different color options, new accessories, new bundles and more. Crowdfunding is one of the best ways to conduct market research with a very targeted demographic, so use the information you learn to create the best product you can.”
5. Include affordable add-on perks:
“Your core tech product is most likely on the pricier side, but don’t forget to include affordable add-on perks in addition to the product itself. The most popular perk value amongst contributors is $10 to $30. Consider adding accessories and add-ons as individual perks so that your contributors can pick and choose the items they want. Then, you can offer them in bundles with special pricing as well.”
6. Work with a team:
“Working with a team is even more effective when it comes to tech campaigns: our research has found that teams raise five times more funds than tech campaigners who work alone. Running a tech crowdfunding campaign is a little like running your own startup; you need both technical and business-savvy people in order to succeed. Having teammates provides different perspectives, ideas and skillsets to help you succeed. It also multiplies your network exponentially as each person can reach a unique set of people for marketing, networking and promotion.”
“Tech campaigns with a pitch video raise eight times more funds than those without a video. Not only are videos incredibly engaging, but they are also one of the best ways to explain your product and why people should contribute to your campaign. You can showcase all of your technology’s features and capabilities, show people using your product and introduce the team behind it all. You’ll also have full creative control over it, meaning you can make it as funny or serious as you want.”
The Indiegogo team then added one more insight, Maximize your global reach:
“The top five most generous countries when it comes to contributing to tech campaigns on Indiegogo are the United States, Canada, Australia, United Kingdom and Germany. Clearly, Indiegogo supporters are spread out throughout the globe, meaning that your marketing and PR strategy should not be limited to just your own country. Consider targeting different time zones and keep in mind shipping costs and different currencies when pricing your perks.”
See the infographic below.
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