Understanding Crowdfunding and Choosing Your Best Platform
“The crowdfunding process is all about grassroots effort; use your networks of inner circles to reach outer circles.” – Ryan Caldbeck, crowdfunding expert
Dive into the exciting world of crowdfunding! Designed specifically for new and independent authors like you, this guide is the first of a series aimed at understanding crowdfunding. So, if you’ve been eyeing crowdfunding as a way to bring your book to life but are unsure how to navigate its many facets, you’re in the right place. This guide will equip you with what you need to know about crowdfunding and how to pick the right platform to fit your needs.
First, let’s get a grasp on the concept of crowdfunding and how it can be a game-changer for a new author.
Understanding Crowdfunding: What Is It?
Crowdfunding is an innovative funding model where individuals contribute small amounts of money to support a project, often in return for various rewards. Instead of seeking substantial sums from a few investors, crowdfunding flips the script—raising substantial funds from a crowd of individuals.
For authors, rewards-based crowdfunding is the best option. In this funding model, people give money to support a project in exchange for a reward or special product. It works best for authors because you can offer rewards, such as signed copies of their book, exclusive merchandise, or even personalized thank-you notes to backers.
Benefits of Crowdfunding for Authors
Crowdfunding offers a multitude of benefits for independent authors:
- Financial support: It provides the funds needed to cover the costs of publishing your book, such as professional editing, cover design, printing, and marketing.
- Market validation: By running a crowdfunding campaign, you can gauge interest in your book before it’s published. If your campaign attracts a lot of support, it’s a good indication there’s a market for your book.
- Audience building: It allows you to connect with potential readers directly and build a dedicated community around your book.
Key Principles of a Successful Crowdfunding Campaign
Successful crowdfunding hinges on a few key principles:
- Transparency: Be clear and upfront about where the funds will go. Your supporters appreciate understanding how their contributions will be used.
- Engagement: Regularly engage with your backers. Updates, behind-the-scenes insights, and active communication can enhance their sense of participation in your project.
- Rewarding Backers: Offering enticing rewards can significantly encourage support for your campaign. Rewards often include copies of the book, but can also feature exclusive experiences, acknowledgments, or other creative incentives.
Crowdfunding Platforms for Authors
Once you grasp the concept and benefits of crowdfunding, it’s crucial to find the right platform for your project. Different platforms cater to diverse needs, niches, and project types.
In the early days of my friend’s writing career, she stumbled upon a crowdfunding site. It was all the rage for inventors. Eager to fund her debut novel, she dove in headfirst without much thought. Lo and behold, her novel, an enchanting love story, found itself amidst cutting-edge gadgets and tech innovations. Picture this. A heartfelt novel sandwiched between an AI vacuum cleaner and a solar-powered coffee maker. Lesson learned: choose your crowdfunding platform wisely.
Kickstarter
Kickstarter, a reward-based crowdfunding platform, hosts a wide range of creative projects, including books. It operates on an “all-or-nothing” model, meaning if you don’t meet your funding goal, you don’t get any of the funds pledged. It’s
considered the best overall platform. It is a reward-based crowdfunding platform that allows creators to raise funds for their projects by offering rewards to backers. Kickstarter has a large community of backers and has helped fund over 240,000 projects since its launch in 2009.
Indiegogo
Indiegogo, another popular, reward-based platform, offers more flexibility with its funding models. You can choose either “all-or-nothing” (like Kickstarter) or “flexible funding,” where you keep the funds raised regardless of whether you meet your goal.
Unbound
Unbound is a UK crowdfunding platform designed specifically for authors. Besides helping you raise funds, they also act as a publisher—handling editing, design, distribution, and marketing if your campaign is successful. They work in both fiction and nonfiction.
Comparing Platforms: Which One is Right for You?
When choosing a platform, consider their funding models, fees, audience, and the level of support they offer for campaign creation and promotion. Assess how well each platform aligns with your needs, goals, and the type of book you’re writing.
DIY Crowdfunding Software
If you’re the DIY type, you’ll find several do-it-yourself crowdfunding software available. They essentially allow you to create your own crowdfunding site. Here are some of the best ones.
Techjoomla, a Joomla extension designed for crowdfunding, and IgnitionDeck, a powerful WordPress plugin, have several features making them good choices for creating a crowdfunding site. Some of the features include:
- Easy to use and doesn’t require technical knowledge.
- Customizable and can be tailored to your specific needs.
- Social media integration.
- Supports multiple payment gateways including PayPal, Stripe, and Authorize.net.
Selfstarter and Crowdtilt are two open-source crowdfunding platforms. They’re both Ruby on Rails applications, which you can host on your own server. They both have features similar to Techjoomla. They’re easy to use and don’t require technical knowledge. Both apps are highly customizable and can be tailored to your specific needs. They also both integrate with social media.
Where Selfstarter and Crowdtilt differ slightly from Techjoomla is in their payment gateways. They both support PayPal and Stripe. However, Selfstarter also supports Amazon Payments. Crowdtilt supports WePay.
Conclusion: Making the Right Choice for Your Project
Understanding crowdfunding and choosing the right platform lays the groundwork for your crowdfunding journey. The best platform for you depends on your individual project, goals, and personal comfort with the platform’s structure and processes. Armed with this knowledge, you’re now better equipped to take the next step—planning and preparing for your crowdfunding campaign.
Our next guide in the crowdfunding series explores how to lay the foundation for a successful crowdfunding campaign, from building your author platform to creating a compelling campaign page. Stay tuned!
Meanwhile, feel free to explore the platforms mentioned above and start brainstorming about which one might be the best fit for your project. The journey to bring your book to life is just beginning, and it’s an exciting road ahead!
We hope you’ve found the crowdfunding strategies useful and motivating. We hope they’ll equip you with the insights and tools needed to help you succeed as a new author. Writing is a journey of continuous learning and improvement. You don’t have to go it alone. We’re excited to continue the journey with you, providing guidance and encouragement every step of the way. Our goal is to provide basic insights and practical advice to help you navigate the writing world with increased confidence.
Don’t wait. Start today!
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FAQs
1. How much money can I raise through crowdfunding for my book?
The amount you can raise depends on various factors including the strength of your campaign, the appeal of your book, your network, and the level of effort you put into marketing your campaign. Some campaigns raise a few thousand dollars, while others can raise tens or even hundreds of thousands. It’s important to set a realistic goal that covers your publishing costs but is also achievable with your existing network and outreach efforts.
2. How long should my crowdfunding campaign last?
Most crowdfunding platforms allow campaigns to run anywhere from a few days to a few months. However, the sweet spot for most successful campaigns is often around 30 to 45 days. This provides enough time to build momentum and reach your goal without the campaign dragging on and potentially losing steam.
3. What should I offer as a reward to my backers?
Typical rewards for book crowdfunding campaigns include copies of the book (either digital or print), acknowledgments in the book, signed copies, or limited edition covers. You could also offer more creative or personalized rewards such as the opportunity to name a character, a personal dedication or message in a copy of the book, or even a meet-and-greet or personal call with you, the author.
4. What happens if I don’t reach my crowdfunding goal?
This depends on the platform and the funding model you’ve chosen. With “all-or-nothing” models like Kickstarter, you won’t receive any funds if you don’t meet your goal. On platforms like Indiegogo, you have the option to choose a “flexible funding” model where you keep whatever you raise, but often with a higher fee. If you don’t reach your goal, it’s important to communicate this with your backers and let them know your next steps, whether that’s adjusting your publishing plan or trying another round of crowdfunding.
5. What can I do to increase the chances of my crowdfunding campaign’s success?
There are several key factors to a successful crowdfunding campaign: a high-quality campaign page with a compelling description and engaging video, an effective marketing strategy, regular updates to backers, and enticing rewards. Building a strong audience before you launch your campaign is also critical. This could be through your email list, social media followers, personal contacts, or any other networks where you have influence.
