Every well-laid out plan must have contingencies, and crowdfunding campaigns are no exception.
As ready as you think you can be to launch your campaign, you can always take one last look at it to make sure all your i’s are dotted, and all your t’s are crossed.
It is important for you to know what your costs are going to be for you to manufacture, ship, distribute and sell your product once it is fully funded.
You also have to calculate your costs according to best-case and worst-case scenarios. Too many campaigns out there were incredibly successful only to fail in delivery due to not planning their costs correctly. Speak with an accountant of your state to make sure you understand how taxes will affect your campaign, as well as a customs agent who can advise you on costs according to the type of product and the quantity.
Plan for the lag
Oh boy, this is a big one and I would be lying if I said it didn’t affect our decision making. In every crowdfunding campaign there are 3 phases, initial push, lag and final stretch. We are going to talk about the lag mainly but let us explain all 3.
The initial push is the wave of people who have been waiting for your game or product to come out and early adopters that are ready to pledge to your cause. The final stretch is when you have a wave of pledges from people who may be waiting for a certain stretch goal to pledge, or perhaps they were unsure of the purchase. It can be as high as your initial push.
The key point of this section, the lag, is the stagnation of pledges between the push and the final stretch. You can see the graph of your pledge count flatlining showing you that day after day, almost no new pledges are coming in, and most creators – including us – begin to panic. You wonder if you’ve missed something, if you made a mistake, should you pay for more advertising? And when the panics hits, leave! Leave the computer, leave your house and go for walk with your dog, watch some TV, go to the beach. Whatever it is that you need to do to get away from the computer and make bad decisions. The lag is completely normal. EVERY campaign has it, some more than others, but it’s always there.
By no means we consider ourselves experts in this subject. We are a family business that is still in its infancy. We are writing this article to give you some insight on our experience with our crowdfunding campaign that helped us be successful in our first campaign. We hope that if you are currently thinking about launching your own crowdfunding campaign, know someone who is, or are just interest in knowing what the process is, that we were able to teach you something new and are more versed in the subject.
We are still learning every day, from a time we didn’t know much at all. We want you to learn with us as we grow in this business and to not be intimidated. If we could do it so can you.
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