Use This Formula to Calculate the Number of Followers Needed
Is there a formula that a project owner can use to determine how many followers are going to be needed to have a successful crowdfunding raise. The answer is no, but with that said this is the formula I use when consulting with a potential crowdfunding campaign owner. Off the top this is what all successful campaigns have in common.
This is the winning formula for any crowdfunding campaign, but of course the devil is in the details. I will show you the formula we use to determine the number of followers need to create a successful crowdfunding campaign:
Take the total number of potential donors from the master list you developed and divide this number by 5 because we conservatively assume only 20% of potential donors will donate. The sweet spot for donations on Kickstarter and Indiegogo is between $25 and $50 dollars we will take the middle for our example we will use $40. .
10,000 ÷ 5 = 2,000
Now multiply 20% of the original donor total by $40. $40 represents an average donation.
2,000 x $40 = $80,000
A Ballpark Number
Finally, multiply this dollar amount by 1.2. This is to account for other donations we think you can attract from friends of friends or total strangers who will hear about what you’re doing during the campaign.$800 x 1.2 = $96,000. So this is a very conservative ballpark figure for what a campaign could reasonably expect to raise with 2000 solid potential donors on its list. But of course the actual results will vary, so you see why developing an organic crowd that is excited and engaged with you project is vital. It is great to have a large number of followers, but these followers must be excited, engaged and true believers if they are going to part with their dollar to fund your dream.