In a crowdfunding campaign, there are certain guidelines that according to experts will determine its success. One is quite known and it’s about the 40% rule. The truth is that if this isn’t met within a certain time period, it’s very unlikely that the campaign will meet its goal. In that case, what’s this rule about and what must be done to fulfill it?

The 40% rule in a crowdfunding campaign

During the development of a campaign, its beginning is crucial and determinant for its success. Because during this stage, a good part of the goal’s money will be collected. Likewise, it’s the moment in which its creators can see if they’ll achieve the goal or not. Many crowdfunding experts and people with successful crowdfunding campaigns have analyzed this. And they have discovered something very interesting.

It’s anpit something that some of them call the “40% rule”. Although some differ and could call it “20% or 30%rule”. In any case, it’s the following: if a crowdfunding campaign collects 40% of its goal in the first three (3) days, it has a high probability of being successful. Why? Since, according to experts, this “conditions” your crowdfunding campaign so that it can take a special momentum.

Derek Miller Cyanide and Happiness
One of the producers of the webcomic Cyanide and Happiness, Derek Miller, also calls it “the 40-72 rule”. Commenting that if you have a mailing list with people to contact to help you raise 40% in 72 hours, your campaign will fund. Source: Cyanide & Happiness (Explosm.net)

What are the benefits of the 40% rule?

Raising 40% of your goal during the first three days has several benefits. The first is that it allows you to accumulate part of the money in a visible way. So that, when new people arrive to see your campaign they’ll notice that you’ve already collected some money. Therefore, they’ll feel more willing to raise your campaign. Which means that if people see a campaign with little or no money, they’ll feel less willing to contribute.

The other benefit granted by this rule is that it creates what some call “domino effect”. We said that when people notice that you have money raised, they feel more willing to contribute. Therefore, as more people see your campaign and contribute, they’ll continue to encourage new visitors. And so on at least during the start and end of the crowdfunding campaign.

make crowdfunding with family and friends
Your friends and family are the first ones interested in contributing money to your campaign. Allow them to give your campaign the boost it needs to attract new people to give contributions.

How to achieve the 40% rule?

An example that we’ve cited in previous posts is that of Jennifer Coulombe. CEO and founder of Sam Nat Babe, who ran a crowdfunding campaign whose success came from this rule. She herself tells from her experience that to achieve this, she relied mainly on her family and friends. Since she was aware that 95% of her contributions would come from her immediate family and immediate friends.

To attract their contributions, she used a blog that was constantly updated. As well as Facebook statuses where she published content to keep them excited and prepared. Especially, prepared by the time her campaign was launched. As we can see, it’s about keeping this audience expectant but above all, interested in your campaign.

Jennifer Coulombe Tips Crowdfunding
Jennifer Coulombe explains that there’ll be a time in the middle of the campaign in which the number of contributions will go down. But thanks to the 40% rule it’ll go back up again during the end. Source: Jennifer Coulombe – WordPress.com

Other points to take into account

Derek Miller recommends encouraging the so-called “early adopters”, the first people who contribute to your campaign. And this can be done through offering discounts, bonuses or a fast delivery of perks. Namely, you must encourage early contributions by offering benefits or specific rewards to the first people who contribute money during the beginning.

Succeeding with these initial incentives will allow you to mobilize your campaign in the first 72 hours. Which will therefore allow you to fulfill the 40% rule and greatly increase the likelihood of meeting your campaign’s goal. We emphasize that although this isn’t a way to guarantee success, it gives you many more opportunities to achieve it if you met all the requirements.

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Don’t forget, fulfill the 40% rule!