How to Understand the Crowdfunding Algorithm
Everything Internet ish can be confusing. And different platforms have different algorithms. Understanding them is key to succeed with different marketing strategies. But how about crowdfunding?
Have you ever wondered what goes on behind the scenes of Kickstarter and Indiegogo? Read on to learn what makes a successful crowdfunding campaign, and how Kickstarter and Indiegogo rank every single project.
Disclaimer: there’s no public knowledge of the algorithms of Indiegogo and Kickstarter, but these are some of my best observations!
A Campaign That Looks Good
First things first. Kickstarter and Indiegogo have their own businesses to run. Your project is how they make money, and maintain their king and queen status of the crowdfunding world. With that being said, they LOVE a crowdfunding project that looks good.
I don’t just mean a pretty product page (though it does help), I also mean publicity and media! If your project is super innovative and getting regional, national, or even international coverage, that means your hosting platform is too. Kickstarter and Indiegogo will reward you by bumping your ranking or even featuring your product. It’s a win-win!
This doesn’t mean that you have to create the next big thing- but it does mean that your campaign’s public image can greatly affect your ranking on the two websites. Keep this in mind when creating a marketing campaign.
Crowdfunding Campaigns That Are Popular
Pre-launch is one of the most important parts of crowdfunding because it tells you (and Kickstarter or Indiegogo) that people want your product! That’s why it’s important to have a solid following before bringing your idea to a crowdfunding platform.
There’s even a simple formula to figure out the exact number of supporters you need for a successful crowdfunding campaign.
Plus, if Kickstarter or Indiegogo sees that your campaign is getting a lot of traffic (whether it’s from a link or from organic search results), they’re more likely to feature you on the front page!
Why do crowdfunding platforms feature campaigns that already have an audience? Two reasons. First, they know it will be a successful campaign and you’ll both make more money. Second, they want to show appreciation for the business your bringing to their website.
The new backers that you bring to a crowdfunding platform are likely to browse and fund other projects.
Money Making Crowdfunding Campaigns
Again, Kickstarter and Indiegogo are businesses that also need to make money to stay afloat- because of this they both require a reasonable fee to use their site. They differ slightly, but they take about 5% of each dollar you raise (something to consider for your budget). This is the main channel for revenue for Kickstarter and Indiegogo! So, the more money you bring in the better it is for both of you!
Again, this comes down to creating the right audience.
When you cultivate the right people and they actually put up the cash, Kickstarter and Indiegogo are more likely to favor your campaign.
See how all 3 of these crowdfunding success factors relate to one another? It’s not hard to see the crowdfunding algorithm in action when your campaign looks great, draws in the right audience, and makes loads of money for you and your hosting platform!
Originally published at https://crushcrowdfunding.com/
