I get this question probably two to three times a day from prospective clients. Most Kickstarter newbies don’t have any clue how much money is poured into marketing by some of the heavy hitters. Those million dollar campaigns you’re seeing are likely spending hundreds of thousands of dollars to reach those goals. So what should you expect to spend on your first campaign?
There are almost two answers to this question…
No one has any clue.
Roughly 20-30% of your final goal.
Allow me to explain.
The reality is, no one can accurately predict how much you will need to spend to reach your goals. And by goals, I don’t just mean your funding goal. If your funding goal is $20,000 but your personal goal is $50,000, that’s the goal you should be concerned with.
Some campaigns do extremely well through word of mouth and with the crowdfunding community latching on to them and driving their popularity. These campaigns are rare though. Do NOT expect this to happen with yours. Crowdfunding is extremely unpredictable. You need to prepare for the worst and hope for the best.
To prepare for the worst, that’s where the 20-30% rule comes in. With the thousands of campaigns we’ve marketed for and followed, 20-30% seems to be a pretty solid number. If it’s your first campaign, I would expect closer to 30%. If you’ve run a few campaigns before and have fans and prior backers, you can expect closer to 20%. This means that $100,000 goal you set for yourself is likely to cost you $20,000-30,000 to hit. I hope you factor that into your equations!
Crowdfunding has dramatically changed in the last few years. Gone are the days of campaigns hitting their goals through organic traffic. There are anywhere from 3,000-4,000+ campaigns live on Kickstarter at any given moment. And the only way to get your campaign to stand out from the crowd is to use marketing!
“But I can’t afford that kind of a marketing budget! I barely had enough to put the prototype together and launch my Kickstarter!”
I hear you! I really do. If you had a ton of money, you’d probably just go straight into production and start selling in retail or e-commerce stores. Luckily we offer solutions if you’re a little cash strapped!
We can cover the cost of advertising for YOU!
No, really. We totally can. But I’m not here to pull the wool over your eyes and trick you. Let me explain how it works.
If you could go forward in time, after your Kickstarter campaign had ended and take advantage of that profit, would you? I hope so! Investing in your growing start-up is one of the most important things you can possibly do! If you could time hop, pull $20,000 from the end of your campaign and bring it back to the start to advertise, you would do it! And your campaign would more than likely raise MUCH more than it did without advertising.
But time machines don’t exist… yet (my fingers are still crossed). We do though! Let me explain how this works.
When you decide to work with Gold Mountain Media, we start spending our money to cover your advertising expenses. As compensation, we charge a commission percentage of your campaign’s overall raise. We go into debt on your behalf to cover the marketing expenses. Then at the end of your campaign, when that extra $20,000 is finally accessible, you can use it to pay us back! This allows you have a marketing budget that is much more than you could have ever afforded on your own. And it gives your campaign the potential to grow MUCH more than would have been possible with marketing!
We’ve done this for hundreds of campaigns. And to be honest with you, it doesn’t always work out. We know that. You should know that too. Which is why our contracts never force you to stay with us. If you’re ever unhappy with the job we’re doing, you can cancel our agreement and you won’t owe us anything further beyond the work that’s been done.
We’re in business to create wins for both sides. We want you to have a good experience with us. And we want your campaign to explode in popularity! We continually test new things to make sure we’re delivering the best marketing service we can. And all of that is designed to benefit you.
So shoot us an email and let’s chat. We’ll make sure your campaign fits our services and our services fit your campaign! And if it doesn’t work out, it doesn’t work out. But it’s better to know than to wonder!