As you have likely heard, Kickstarter is one of the most popular forms of crowdfunding on the Internet. It has already helped thousands of startups and independent projects gain funding through mass numbers of pledges.
Such projects include everything from t-shirts to documentaries, with an abundance of mobile app projects nestled in between. In the case of your mobile app, you may want to consider seeking at least partial funding through a site such as Kickstarter. Even if you have already secured the principle investors for your app project, it certainly cannot hurt to have a little excess capital when moving forward. If you are in fact interested in seeing what kind of funding your can stir up for your mobile app on Kickstarter, here are a few things you should think about when doing so.
Small And Large Investors
The beauty about a crowd-funding site like Kickstarter is that you can garner a large number of investors with a wide range of pledge amounts. More specifically, you could have a hundred investors pledging $5 each, but at the same time, have only five investors pledging $100. Because of the wide spectrum of different pledge amounts, both small and large investors are more likely to contribute to your project. For instance, small denomination investors are more likely to contribute because there is no minimum pledge amount.
Not to mention, those simply giving your project a cursory look may be enticed to invest when they see that they can contribute as little as $5. Additionally, those inclined to only pledge small denominations will be comforted seeing that others are contributing the same amounts. Perhaps, the best part about such investors is that, combined, they have the potential to contribute a substantial amount of money to your project.
On the other hand, those investors pledging large amounts of money have the potential to individually make bigger impressions on your mobile app project. Similar to the way that small investors have the potential to contribute substantial amounts of money, the more large investors your project garners, the closer you will be to your fundraising goal. What’s more, because they are contributing large sums of money, it will take fewer cumulative investors to secure the capital that you need.
Rewarding Your Investors
Rewarding your investors is a big part of the Kickstarter model. Regardless of whether an investor is pledging $5 or $500, you will need to reward them. Such rewards can also serve as a sort of incentive for prospective investors to contribute large amounts of money to your project. To entice investors you should vary the rewards you handout based on the amount of money that investors pledge. For instance, if someone contributes $5 to the development of your app, then perhaps you will reward him or her with a free download once the app is complete. However, if they give you $500, you will want to provide them with a more substantial reward, such as their name on the app’s credits, or an invitation to the release party.
Using a crowd-funding website like Kickstarter is a brilliant method of securing the principle, or even supplemental funding for your mobile app project. Whether you need just a little more capital, or large amounts of money to get your project off the ground, you should definitely consider kick starting your project with Kickstarter.
This was a guest article from Jennifer Lewis.