Crowdfunding Metrics: What we’ve learned that you need to know!

After collecting nearly a year’s worth of data, it has become clear that many crowdfunding newbies fall victim to the same trap. Avoiding this pitfall is critical as it prevents folks from reaching their financial goal every time! What is it?

The Assumption: Crowdfunding is easy. If I post a project online, people will give me money. Read more here.

The Truth: Crowdfunding is work. It requires time, energy and commitment. If you don’t get behind your project, nobody else will either. Read more here.

The Proof: Over 65% of unsuccessful projects never get a single contribution. Let me say that again… not a single contribution! That means the people who posted these projects don’t believe in them enough to even give themselves $1. Why should anyone else?

The Kicker: Over 96% of unsuccessful projects never reach 10% of their financial goal. 99% of unsuccessful projects never reach 15% of their financial goal. Sometimes this happens because the project has an unrealistic financial goal, but most of the time it’s because people post projects then expect “the internet” to take over. If that's what you were expecting, please read what I have to say about "Internet Angels."

The Lesson: Over the course of the past 10 months, we have launched over 300 projects on RocketHub. We have raised over $200,000 dollars (and counting) for creative projects of all shapes and sizes, and we’re just getting started! Crowdfunding is doable, but the key to success is committing to making the effort.