Get The Real Picture

Co-Founder Post - Andyshea Saberioon, @andysheasabco

Crowdfunding is so easy. I hear about different social needs or different entrepreneurs raising millions of dollars on these big sites. I mean if someone can raise over $50,000 to make potato salad, how difficult can it really be? If only you knew.

What if I told you that sites usually see about 50% of their projects go without raising a single dollar? What if I told you that the average dollar amount raised on any given site is in the thousands? OR what if I told you that on average, only about 30% of total projects on any given crowdfunding site meet or exceed their goal?

Puts things in perspective a bit. Crowdfunding is easy if you know what you're doing. You cannot just put a cause on a site and hope that the gods will pour dolla dolla bills on your cause. Just doesn't work like that. This is why we focus on educating our educators about what they are going to try. PledgeCents is not a grant funding company. You can't just write your cause and submit it and then expect us, or random people, to fund it (sites see an average of 75% of total dollars coming from the account holder's direct network). Here are some tips on what I've learned through crowdfunding (and continuing to study) over the last 4 years.

• Know your platform - Before you even start a cause, understand what platform you're going to use. For teachers, if you choose GoFundMe, Kickstarter, Indiegogo, etc. there are few things you should know.
  • They are not built with educators in mind.
  • They do not provide matching opportunities.
  • Once your money has been raised, you are able to withdraw the funds into your personal bank account. This sounds great at first, until you realize that it's considered taxable income.
  • If you don't meet your goal, you may not receive your money.
  • These platforms are not able to provide full accountability for the causes they represent. This is why there are some disclaimers saying "you should do research before you give to any project on our site." This is basically telling investors, only contribute to people you trust and know.

• Create your cause - When creating your cause, you need to have fun.
  • Think of a creative title.
  • Use engaging photos or videos. Statistics say that causes with a video (usually 1:00 to 1:45) have a 30% chance higher chance of success. Why? Because people are able to see the faces and hear the voices behind who the cause is impacting.
  • When you are thinking about your goal amount, start your goal at what you NEED, not what you WANT. Be modest. With any crowdfunding platform, you are always able to raise more than your goal, but you don't want to be "penalized" if you don't meet your goal.
  • There is no such thing as too much. If you're going to ask for $5,000, you can't get away with just saying "I want to buy chrome books." You have to be descriptive. Provide the list of items you would like to purchase. How many of each item are you looking to purchase? What is the cost for each item? The more you break it down, the more transparent you are to your potential investors.
  • Be a social butterfly. You need to be active in spreading the word. Post on Facebook, Twitter, Pinterest, Google Plus, Email, etc. Whatever tool the platform provides you, USE IT. They are there to help you, not to scare you.
  • When it's all said and done and you've used the funds you raised, please remember to post an update. When you post updates, your investors begin their relationship with you. They trust that you are responsible with the funds they have invested. The more they trust you, the more they will help you raise funds and awareness for your future causes.

This all may seem pretty straightforward and you may be thinking "duh". If it's as easy as it sounds, then everyone would be raising any amount they ask for, right? I love working with people who want to create crowdfunding causes and I provide a lot of feedback along the way. The #1 response that I get when their cause is over - "I should have listened to your suggestions." Just saying.

*Shouout to Krowdster for good blogs about the statistics behind crowdfunding platforms. (click here and enjoy).