*Updated to 2023
So you have a great idea. It sounds ground-breaking!
With your potentially revolutionizing product idea in mind, you’ve realized crowdfunding is one of the best ways of bringing your idea to life.
You’ve explored Indiegogo and Kickstarter, looking through some of the best-performing campaigns that raised millions of dollars.
And you thought to yourself, “I could do that, too!”
A nice video. Some photos. A description. That should work.
Nope. It won’t!
Even today, around 65% of all crowdfunders fail to reach their target goals.
Please, don’t add your campaign to those stats.
Out of that 35% of successful campaigners, on average, they don’t raise more than $25k.
Only 2-3% raise more than $100k. And only 0.1% raise more than $1 million.
Yup. Out of 1,000 campaigns, only 1 raises over a million dollars.
So, it’s hard. But it’s not impossible.
There are certain things you can do to make it easier on yourself.
In this article, we’ll discuss the pros and cons of going at it alone and compare those to working with professional crowdfunding consultants. This context behind crowdfunding will help you make a more informed decision.
p.s. If you are short of funds, don’t fret. You can use this specialized crowdfunding fund to get a marketing budget for your campaign.
Good crowdfunding agencies do. And there are two main reasons to explain it.
Crowdfunding agencies have built up the expertise to execute crowdfunding campaigns. They have learned the many nuances within the industry through years of experience. Someone that just walked into crowdfunding marketing may well be unaware of these.
Take the choice between the two leading crowdfunding platforms – Kickstarter and Indiegogo – as an example. What are the benefits of each platform?
Or how much should you spend on targeted ads, and on which audiences? Or how should you structure your crowdfunding page to convey the correct information? In the right amounts? And in the correct order?
Another important reason crowdfunding agencies work is their vast network of journalists and influencers. Thanks to these partnerships, they can garner visible coverage for lower rates, land featured posts with affiliate commissions, and guarantee the maximum possible ROI for your campaign.
While there is a lot of comprehensive information on running crowdfunding campaigns, the insights and experience gained through years of exposure will help a professional crowdfunding agency make the right decision.
Many crowdfunding agencies, consultants, and so-called experts in this field will offer you their services. Unfortunately, the vast majority are scams and will probably not bring you any results. When somebody offers you traffic of 1 million people for $25- you might think, “$25 isn’t much; let’s try. What if it works?”
It won’t! You will waste time and lose your $25 – for sure.
Be aware of “too good to be true” offers. And always try to get references from their previous clients.
Most crowdfunding consultants also only offer advertising services, while some only take care of PR or influencer marketing. Others go much more profound. Services that crowdfunding consultants might offer – roughly in order – include:
The crowdfunding agency may or may not carry out these services. And the extent to which they are varies greatly.
Some might attempt a one-size-fits-all approach, reusing the same worn strategies. Others are constantly restrategizing, discovering the best ways to market your product to new audiences you may have yet to consider!
Some may spend their budget indiscriminately. Others find the most optimal tactics to maximize your budget and increase your ROI.
There are several ways you can find a professional crowdfunding marketing consultant.
First, check out Indiegogo’s Experts Directory, which lists Indiegogo-trusted crowdfunding agencies. While listed on Indiegogo, many of them manage campaigns on Kickstarter too.
Agencies place their logo at the end of their partners’ campaign pages. Review your favorite campaigns, note how much they raised, and see whose logo you find.
Remember to get a reference from the campaigner about their experience with the consultant. There are cases when the campaigner canceled their contract with the agency on the second day, but the logo is still there…
Search Quora for crowdfunding experts. Look for crowdfunding-related questions and see who has replied. You’ll find some notable crowdfunding experts among them.
And check out our list of recommended agencies.
We’ve seen a lot of agencies come and go, these are the ones that have stayed, demonstrated their experience, and we’ve heard a lot of good feedback about them:
Strongest Skill: Facebook & Google Ads for Kickstarter
Jellop runs targeted advertising on Facebook and Google for Kickstarter campaigns only. Thanks to its proprietary ad technology, the Jellop team provides remarkably high returns on ad spend, driving waves of targeted traffic to your campaign.
Strongest Skill: Dedicated Team of Crowdfunding Experts
The Crowdfunding Formula (TCF) dedicates a 15-person team to work solely with you during the campaign. They design and execute a growth strategy tailored to your product and audience. The team covers the full spectrum of services with their full campaign management, including:
Strongest Skill: Audience
Rainfactory has a lot of experience in running campaigns on Indiegogo and, over the years, has built a great audience. They know how to drive a large amount of traffic to your campaign page and make it successful. With an impressive portfolio of 7-figure campaigns, Rainfactory is a full management agency covering various activities.
Strongest Skill: Testing & Launch
Launchboom has a bunch of methodologies to test whether your campaign is a good fit for crowdfunding. They can prepare you for a solid launch if their testing results are positive. Launchboom has mastered product testing and launching, laying a solid foundation for the subsequent stages of a crowdfunding campaign.
While the industry of crowdfunding agencies isn’t as saturated, you want to do thorough research to find the best crowdfunding consultant that will unleash your campaign’s full potential and take it to the next level.
Here are some actionable tips and hints to put into practice as you choose a crowdfunding consultant:
Whether you’ve decided to hire a crowdfunding consultant to manage your campaign or do it alone, we wish you good luck!
No matter what path you decide to take, ensure you have a team behind you. Friends, families, and business partners will help you navigate the many different aspects of a crowdfunding campaign, overcome setbacks together, and remind you to be flexible if something doesn’t go to plan.