One question we’ve gotten a lot recently is: “How do I know how much I should aim to raise with my crowdfunding campaign?” The answer: you don’t! There is really no secret formula or magic number to help you decide what the right goal amount is…but here are some tips:
1) Be realistic.
Very few crowdfunding campaigns have raised a million dollars, or another gigantic amount of money. Is it possible? Sure. But you will have a much better chance of meeting your goals if you set reasonable expectations and approachable amounts. Your friends, family, and fans are more likely to respond favorably to your request for donations if your amount is practical and suits the project you are pitching. For example, $2,000 is a much more approachable and reasonable amount to raise to help with tour expenses than $10,000. Show that you know the value of the money you are raising by being willing to make it go as far as possible.
2) …but don’t be afraid to aim high!
To clarify, being realistic doesn’t mean aiming low. Understanding what a reasonable amount is doesn’t mean you have to ask for less than you need. Before starting any crowdfunding campaign you should have thoroughly researched what the total project expenses will be. Aiming to raise as much of the total cost as possible is a fine goal.
3) When in doubt, be ambitious, yet humble.
Like we said, there is no magic formula for figuring out how much to raise, but our advice for finding the perfect goal amount is to take the amount you need*, (let’s say it’s $10,000,) and the amount you think you can raise, (let’s say you have 300 friends, fans, and followers, and you think they will each donate an average of $15 – that’s $4,500…) and average them! The average of 10,000 and 4,500 is 7,250. So, if you set your goal at $7,250, you have aimed high, but remained realistic.
*Don’t forget to add in the cost of your reward fulfillment! If you are offering CDs, crafts, notes, or something that may cost a few bucks for you to make or acquire as rewards/gifts for your donors, factor this cost into the “how much you need” part of the equation.
Still thinking about the right amount to raise? Don’t hesitate to hit us up at
firstname.lastname@example.org with any questions. We’re here to help!