Over 400 new projects launched daily.
People all over the world are turning to crowdfunding. Realizing that in order to get the funds they need for their projects, creative people have been flocking to crowdfunding platforms like Fundpey.com. At the time of this writing approximately 34 billion dollars has been raised from peer to peer crowdfunding. The crowdfunding platforms have hosted over 79 million people. Is this a viable method to raise funds for your project? Here are some statistics to answer that question.
All or nothing
What is an all or nothing crowdfunding campaign? An all or nothing campaign is just what it sounds like. The creator of the campaign posts the project on a crowdfunding platform. The money that the creator needs is posted with a time limit. If all of the money is not raise within the time limit, the project is not funded and the money is returned to the backers. In an all or nothing crowdfunding campaign the success rate is over 36%. These campaigns have a more difficult task to becoming successful in their campaigns. However the trust level is their for the backers in that if goals are not met then they are not charged. Fundpay.com does not offer an all or nothing option. We feel that a project owner should be able to reap the rewards of their efforts regardless of their reaching a predetermined goal.
Flexible funding…Keep everything you make
In a flexible funding campaign there is a goal set. This goal is a number to strive for. However unlike an all or nothing campaign, a flexible funding project keeps all the money for the project even if the goal is not met. This type of campaign is popular in that even though the monitary goals were not met, the creator of the project still has funds to complete part of the project. At a later stage the creator of the project can then start another campaign an proceed to the next level in accomplishing their goal.
The smaller the goal the more successful
- The average successful crowdfunding campaign is around $7,000.
- The average crowdfunding campaign lasts about 9 weeks.
- Campaigns that can gain at least 30% of their goal within the first week are more likely to succeed.
Return on social media
- There is a direct correlation between the number of outside links to a crowdfund campaign and the success of the campaign.
- Social Media is a critical factor in crowdfunding success. For every 10 Facebook friends, the rate of success increases exponentially. At 100 friends, you can expect a 20% increase of success rate than at 10 friends. This make sense. More people more success. But the percentages go up. With 1000 friends the sate of success is over 40%.
- Success means meeting a predefined goal.
- The average Facebook timeline post converts at an average of 3.5%.
- An email post has an average conversion rate of over 20%.
More stats on social media
- Over 80 percent of female internet users are on Facebook and over 70 percent of male internet users.
- Most Instagram users are female and aged 18-29. Over 30 percent of teenagers consider Instagram to be the most important social network.
- 50 percent of Instagram users access the platform daily, 500 million, and over 30 percent say they look at the platform several times per day.
- Over 80 percent of millennials check Twitter at least once per day. That number is also the same number (80 percent) that use twitter on a mobile phone.
- LinkedIn boasts more than 500 million user profiles and growing. Of those users 40 percent access the site on a daily basis.
- The average LinkedIn user spends 17 minutes on the site per month.
- over 75 percent of the time that is spent on social media platforms is spent using a mobile phone..
Keeping up with your posts and staying in contact with backers will improve your chances of success in your campaign. The more contact, the more a backer will consider pledging to your project. Once you have reached a 35-40% threshold of money that you have raised, visitors will stay on your campaign page 1/3 more time and are likely to contribute.
Like anything that you attempt. running a successful crowdfunding campaign is time consuming and takes work. Fortunately, most of the work is in posting and emailing prospective backers. Follow these simple rules provided on Fundpey.com and register your new campaign!