Crowdfunding Costs: How much does it cost to create a professional crowdfunding campaign
- You can also publish your crowdfunding campaign on your own website. This saves you the costs that a respective crowdfunding platform would charge. However, you lose the reach and the visibility of the crowdfunding platform.
- The total costs to launch a professional crowdfunding campaign start at approx. €25,000, but can also become significantly higher.
- These costs can be reduced through innovative marketing ideas! In this case, creativity simultaneously means a larger budget.
Inhaltsverzeichnis
- 1 Crowdfunding Costs: How much does it cost to create a professional crowdfunding campaign
- 1.1 The most important points at a glance
- 1.2 We help you raise successful crowdfunding financing
- 1.3 Prototype
- 1.4 Product Design
- 1.5 Prototype Development
- 1.6 Photography and Images
- 1.7 Video
- 1.8 Trade Shows, Exhibitions, etc.
- 1.9 Advertising
- 1.10 We help you raise successful crowdfunding financing
- 1.11 Press Releases
- 1.12 Hiring a Marketing Consultant
- 1.13 Rewards, Manufacturing, and Delivery Obligations
- 1.14 Bonus: What you should not pay for
- 1.15 Conclusion and summary
- 1.16 Free consultation
- 1.17 More articles
| Crowdfunding Plattformen – Übersicht | |
| ⭐ Vorgabe: | Crowdfunding Plattformen |
| 🏆 Dauer: | Ca. 3 Monate |
| 💰 Kosten: | Projektspezifisch |
| 📺 Zielsetzung: | Crowdfunding Finanzierung einsammeln |
| ⚡ Technologien und Kenntnisse: | Social Media, Webseite, Video, E-Mail-Newsletter |
The most important points at a glance
- Crowdfunding offers a very powerful way to obtain the necessary funding for your project
- Keep in mind that the costs for a crowdfunding campaign can vary greatly. They depend on your requirements as well as on the project and its complexity.
- However, fundraising is only the beginning of the campaign and represents just a small part of the bigger picture. You must additionally market your project and – if the campaign is successful – have the product manufactured and shipped.
We help you raise successful crowdfunding financing
Plattform |
Bewertung |
Besonderheiten |
Weitere Infos |
|---|---|---|---|
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Bewertung: 9.8 |
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Bewertung: 8.2 |
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Bewertung: 7.3 |
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Although crowdfunding campaigns on sites like TILT, Indiegogo or Kickstarter are seen as an opportunity for additional revenue, everyone knows that a lot of preparatory work is required. If you want to launch a new, great product for consumers, you must ensure that you plan and have enough budget available to guarantee that you can finance the entire process afterward.
Keep in mind that the costs for a crowdfunding campaign can vary greatly. They depend on your requirements as well as on the project and its complexity. For this reason there can be very large differences. The figures and data given here therefore serve only as examples.
Bereich |
Kosten |
|---|---|
| Produkt Design | 2.500 - 6.500 EUR |
| Prototypenbau | 4.000 - 8.000 EUR |
| Fotos, Diashows, etc. | 500 - 2.000 EUR |
| Videos | 500 - 4.000 EUR |
| Messen, Ausstellungen, Messen, etc. | ab 2.500 EUR - 10.000 EUR |
| Vermarktung | ab 10.000 EUR |
Costs: From €25,000
Prototype
Anyone who even considers supporting a crowdfunding project wants to know what they are getting into. Moreover, many of the major platforms now require companies to present a functional prototype. This is primarily to protect buyers from fraud or other issues that might arise. To obtain a functional prototype, however, you must consider several things in advance, such as your skills and experience, what equipment you need, etc.
Product Design
The first step to bring your idea to life is to hire a product designer or a specialized company. They can create an initial 3D model of your idea and define the specifications for the individual components needed. You can find the right company for this task by asking around on social media or in relevant Telegram groups. Crowdfunding groups or sites like LinkedIn and Quora can also help. Some design firms and product designers even have their own 3D printer. This way you can immediately see the fruits of your work and make any necessary changes directly.
Costs: €2,500 – €6,500
Prototype Development
It is now quite common for project managers on Kickstarter and Co. to start their campaign with only a printed 3D model. While this is perfectly OK, there are several advantages to having actual samples or demos of your product. These include:
- You show potential backers that you have already worked on the product and dealt with it.
- Photos and videos look significantly better with a real model than with a simple 3D print.
- You have samples or demos that you can give to the press. You will undoubtedly be asked for examples in some form before media coverage.
Costs: €4,000 – €8,000
Photography and Images
Good images—some promising, meaningful photos—and a good video are the most important prerequisites for a successful campaign. Whether crowdfunding or marketing, you can’t do without good images and professional photography. This is especially true for crowdfunding: your buyers have no way to test the product before purchase. The only way to get an impression of your project is through photos and videos.
With some luck, you, a friend, or perhaps one of your employees is very proficient with a camera. In that case, you can handle the photos and videos yourself and save costs. In most cases, however, you will need a professional photographer. Many project managers simply use still frames from their videos for photos. We do not recommend this, as the quality is not particularly good. Print media and blogs usually require a quality of at least 300 dpi. Moreover, without a larger number of photos and videos, you will quickly run out of material for blogs and press.
The OUYA video game console is a perfect example of clear, minimalist, and high-quality photos.
The following three types of photos should be used for your campaign:
- Product photos on a white background. These shots give agencies, media, etc. the greatest flexibility. They can use these images without issue and show the product without distractions.
- Exploded-view drawings that show the product’s internal or technical components. This is only necessary for technically complex projects. Backers interested in more details will appreciate this.
- Lifestyle images that show buyers, the media, and customers how your product can help them in everyday life. People are ultimately interested in a product only if it solves a problem or meets a need.
Costs: Between €500 – €2,000
Video
Not only is a photographer important—your team should also include a videographer. It’s especially useful if the videographer is familiar with startups, products, and crowdfunding. While you might still handle photos yourself, you should always entrust videos to professionals. Don’t be tempted to do it yourself. You need a videographer who can not only produce professional videos but also develop a story and edit the footage.
Costs: €500 – €4,000
Trade Shows, Exhibitions, etc.
Of course, it’s not just photos and videos that are important to present your project or product. Expos, trade shows, and similar events offer valuable opportunities to showcase your project to the public, backers, and the media—and to discuss it. You can present videos and images or even your first prototype. You can answer questions and engage directly with people. You have the chance to draw attention to your crowdfunding campaign and collect information and contacts, for example for a newsletter or future marketing efforts. All of this makes trade shows, exhibitions, expos, etc. an important part of your project. It’s an option you should definitely not neglect. Costs and requirements for participation in such events often vary but usually remain within limits.
Advertising
Marketing your crowdfunding campaign is one of the most important success factors. People need to hear about your project and planned crowdfunding campaign. Only then can you succeed with such an endeavor. We have found that Facebook Advertising works excellently for these purposes. Here you have numerous options to define precise characteristics and criteria for your target audience. You should typically budget €100 per day here. The reason is that free publicity usually doesn’t get you very far. Paid ads are the recipe for success. In addition, you may also run campaigns on Twitter or Instagram. You must market your product or idea successfully and effectively in advance. Otherwise, the success hoped for from crowdfunding will not materialize.
Costs: From €10,000
We help you raise successful crowdfunding financing
Plattform |
Bewertung |
Besonderheiten |
Weitere Infos |
|---|---|---|---|
| |
Bewertung: 9.8 |
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Bewertung: 8.2 |
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Bewertung: 7.3 |
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Press Releases
Not only are social media ads important. Press releases from you or your company regarding your project, progress, plans, etc. are crucial. With press releases you reach bloggers and the media—people who can help make your project or product known. Additionally, press releases are a great way to report on potential endeavors like a crowdfunding campaign. You should publish these releases on your own website, for example in a blog, but also on well-known external sites with large reach. Examples include PRWeb, PRNewswire, AP Newswire, or Businesswire.
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Costs: Between €200 and €500, depending on platform and chosen option.
Examples of top PR and advertising sites are PR and PR-Gateway. But you should definitely aim to make your project known internationally. For this reason, global portals like PR Newswire should not be neglected.
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Hiring a Marketing Consultant
Hire a marketing expert familiar with Kickstarter. It doesn’t matter whether it’s your first fundraising campaign or you’ve done this before. A professional agency, like ours, can bring additional skills to the table. They often have marketing and PR experts, graphic designers, photographers, etc. All these services are already included with professional marketing and advertising agencies. You don’t have to hire extra service providers or find qualified personnel for these tasks.
Needless to say, a professional agency, thanks to its experience and past projects, often has a large network of media contacts, bloggers, etc. These are people who help you succeed and whom you might not reach otherwise or only with great effort. This—and the fact that a PR agency can take a lot of work—and worry—off your hands—makes the investment one of the most important decisions you’ll make.
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Costs: Depending on agency and services, from €5,000
Rewards, Manufacturing, and Delivery Obligations
Of course, you not only have to market your project and draw backers and the media’s attention to your endeavor. You must also decide how to reward your backers. What pledge levels will you offer? What perks will backers receive? Will they get the product for free, or will there be different versions at different prices? Maybe they’ll get shares or access to an exclusive area? These questions are very important and should be thoroughly considered in advance.
You also need to deal with production. Who will handle production or development for you? What is the minimum order quantity? Both developers and manufacturers often have minimum order quantities and may offer discounts for bulk orders. This is a cost consideration, but you also need to estimate how many backers you want. Make sure the company is reliable and handles delivery and logistics well. After all, you have a delivery obligation. If backers support you, you must deliver the promised product without delay. Think carefully and calculate thoroughly. You wouldn’t be the first project manager faced with unexpected problems or much higher costs due to overlooked planning details.
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Option 1: Host your campaign on your own website
Many people hesitate to start a crowdfunding campaign on Kickstarter, Indiegogo, etc. because of the fees these companies charge. In addition to a share of campaign proceeds, there are often administrative and payment fees. It’s no wonder that self-hosting a campaign on your own site comes up.
In principle, there is nothing against hosting a project on your own site. For WordPress, there is even a plugin that makes this possible. But: before making that decision, think carefully! Today there are not only Kickstarter, Indiegogo, and a few other giants. You have many platforms to choose from. Some are free, others very affordable. It’s worth comparing. You must also remember that platforms like Kickstarter—and most other crowdfunding sites—offer not only resources but also reach. Marketing experts can help you launch and successfully market your project on the portal. Even smaller platforms like Ulule attract many potential backers—and are known to bloggers and media.
Nevertheless: thanks to so-called self-hosted crowdfunding, you can now host an entire campaign yourself and keep 100% of the revenue. You don’t have to share with anyone but lose many of the advantages and extras these platforms bring. In that case, you only bear the costs for the necessary software—unless you develop it yourself.
One more important question: what happens if you don’t reach your goal? Here there are differences between providers. On Kickstarter, backers keep their money. They are only charged when the campaign ends and the goal is met. If you don’t reach your Kickstarter goal, you get nothing. Other platforms like Indiegogo or GoFundMe offer a second option. Besides the classic version, you can choose flexible funding. Then you receive the collected money—minus fees—even if you don’t reach the goal. Many other providers offer similar flexible models or even additional options.
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WordPress plugins like Backer allow you to host crowdfunding campaigns on your own site and keep 100% of the profit. You still lose the advantages and reach of portals like Kickstarter and Co.
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Website Development
If you or your team have the necessary skills, you can develop your own landing page or website for your project and integrate the fundraising campaign—without plugins or third-party software. On the other hand, some CMSs like WordPress let you start a professional fundraiser campaign on your own site with only basic knowledge. WordPress is easy to learn, and many tutorials and videos are available for free online.
Of course, you can also hire a web developer specifically for your project. They can build a professional website for you. However, this can be costly. Depending on the scope and desired functions, you may spend up to €3,000 or more. For smaller campaigns, Kickstarter, Co., or a WordPress plugin is probably cheaper. However, for a large project with five- or six-figure goals, hiring a web developer may be worth it.
The biggest mistake you can make is not hosting your campaign at all and missing out on traffic and SEO. Even if you’re on Kickstarter, Indiegogo, Ulule, or other platforms, market it on your own site too. Write about it, link to it, and integrate it into social networks, your blog, newsletter, etc. For this, you need your own unique web presence that captivates your target audience.
Here lies a big advantage of self-hosted crowdfunding: it’s your website. No one can dictate design or campaign format. Together with a creative web developer and a savvy media agency, you can create an original, engaging site tailored specifically to your product—one that doesn’t get lost among hundreds of other projects. Done right, you can recoup many of the disadvantages of using a crowdfunding portal. Budget for these costs:
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- Domain registration: €10
- Web hosting: approx. €10 per month (cheaper by year/half-year/quarter)
- Plugins: up to €200 or more
- Website development: up to €3,000
If you already have a website for your project or company, you can reduce these costs. You only need to enhance your existing site with a mock-up or set up a subdomain for your crowdfunding campaign. This saves time and money—especially if you’re comfortable making changes yourself and have a good media agency or web developer on board.
Option 2: Choosing a crowdfunding platform
Kickstarter is the market leader in crowdfunding, attracting more than 35 million visitors each month.
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Each crowdfunding platform has its own fees and costs. Kickstarter and Indiegogo are the best-known. Reward crowdfunding, where backers receive rewards for their support, is the most popular form of fundraising. These platforms do not charge backers fees; in fact, they receive something in return. To cover costs and generate necessary revenue, portals like Kickstarter charge fees to the project creator. These are usually due at the end of the campaign and consist of platform fees, payment processing fees, and possibly other costs. Let’s take a closer look at what various providers charge.
Plattform |
Plattform Gebühr |
Gebühr für den Zahlungsabwickler |
|---|---|---|
| Kickstarter | 5% der Gesamteinnahmen | 3% der Gesamteinnahmen, plus $0.20 pro Pledge |
| Indiegogo Fixed Funding Kampagne | Plattform Gebühr von 4% der Gesamteinnahmen | Payment Processor Gebühr (PayPal): 3-5% der Gesamteinnahmen |
| Indiegogo Flexible Funding Kampagne | 4% der Gesamteinnahmen wenn erfolgreich. 9% wenn nicht erfolgreich. | 3-5% der Gesamteinnahmen |
Bonus: What you should not pay for
There are unfortunately some scams online that try to take your money in exchange for supposed services like better visibility. Be especially wary on Kickstarter and Indiegogo. You should normally not pay for these services:
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- Email lists: Buying an email list seems tempting but is almost always useless. These lists contain dead or disinterested addresses and sending unsolicited emails is considered spam. You risk having your email account blocked or messages sent directly to spam folders.
- Facebook fans or Twitter followers: While follower counts may matter for consumers, in marketing they skew your metrics. Fake-fan counts ruin your statistics, making it impossible to track campaign performance and target ads effectively.
- “Guaranteed” GoGo Factor or Kickstarter algorithm boosters: Often found on Fiverr, these are typically scripts that simulate traffic. Save your money—these scripts don’t work!
- Google AdWords: Avoid using it for two reasons. People searching for a product intend to buy it, not crowdfund it. Moreover, Google explicitly prohibits ads for fundraising campaigns!
As you can see, a well-organized crowdfunding campaign can quickly become expensive. Fortunately, you can plan costs in advance and reduce them through certain actions and formulas. You also need to define your campaign goal. How much money do you need to succeed? You can calculate this relatively easily:
- Determine how many units you must order and the production cost. If the minimum order is 5,000 units at €5 each, you need €25,000 for production alone.
- Obtain quotes for additional marketing, video production, photos, etc. Add these costs to your goal. If these costs are €5,000, your total rises from €25,000 to €30,000.
- Plan an additional 10% for platform, payment processor, and other fees. On €30,000, that’s another €3,000. Your campaign should therefore raise at least €33,000. This excludes shipping and potential profit.
Conclusion and summary
Crowdfunding offers a very powerful way to obtain the necessary funding for your project. At the same time, you build a network of customers, prospects, bloggers, and media interested in your project. Fundraising is only the beginning and represents a small part of the bigger picture. You must market your project and—if successful—have the product manufactured and shipped. This is an expensive undertaking! Add platform fees and costs of service providers, agencies, and payment processors, and you’ll quickly see why adequate budgeting is essential.
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Free consultation
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