As mentioned in our Summer 2018 Food and Drink newsletter, and again in my September breakfast event aimed at the Food and Drink sector, Food and Drink businesses appear popular with crowdfunding platforms (and more particularly the ‘community’ using those platforms).
Unfortunately, the person scheduled to speak from Crowdfunder at the breakfast briefing has to cancel on us at the last minute for personal reasons. I have caught up with them since on one proposition and he relayed some data and tips that I thought would be useful to those potentially looking at making a pitch on that platform.
Amending what he emailed me slightly – “[Food and drink product] projects tend to work very well on the website – if you’ve got a good story and a great reward to match it with then it’s a very easy pledging decision.”
Our client was potentially looking for £25k. Our contact at Crowdfunder advised as follows:
- The average pledge on Crowdfunder is £50
- If they need £25K, that’s 500 pledges at £50.
- On average 1 in 20 people who view your page will make a pledge
- So their audience size would be 10,000 (500 x 20)
The marketing/your market reach
“How you choose your target should be based on your audience.”
First step is to look at doing a network map to get an idea of how many people could join your crowd.
You need to have a decent Facebook following and email database.
Some ‘good examples’ of crowdfunding campaigns, as referenced by our contact, included the following: https://www.crowdfunder.co.uk/rose-gin-by-tinkture
Whilst we are on the subject of the crowdfunding campaigns, I should advise/remind that in Cornwall it is possible to get a grant towards the costs of the campaign (including professional video creation and marketing support) – see A2F grants.
Some more maths
Please do not forget that in running a rewards campaign you are in some cases accelerating the receipt of income – make sure you reflect this in your projections. And do not forget to account for VAT.
More guidance available