Going for the ‘All or Nothing’ model of crowdfunding over flexible funding is a rather difficult decision to make, especially when you’re in real need of the money. It’s always better to have some money than NO money at all, right?
We know it sounds scary and understand how freaked out you might feel at the prospect of failing to raise the desired funds. Horror story right here - IMAGINE reaching to 99% of your goal and then failing. But it’s also all the more a reason to reinforce the principle of the “All or Nothing” model. After all, projects following the ‘All or Nothing’ model are 37% likelier to succeed as compared to those that don’t.
To break it down for you, here’s why it works:
You make serious efforts towards your campaign
Campaigners can get pretty notorious! So many of them go underground and go off radar after launching their campaign; but the minute you throw in a deadline – BAM! Shit just got real in here. Because of the simple fact that if you fall short of even a single penny, you stand to lose it all - everything you raised will go back to the backers, which pushes you to be even more motivated than ever to make this happen. You make efforts to come up with a plan, stick to it till the very end and show tremendous dedication towards your campaign. Which is exactly how it should be, as opposed to acting like a fly by night campaigner and making a fool of yourself.
The crowds learn to act quickly
Hard work never goes unnoticed. And, watching you work so seriously to reach your goal will push the crowd to not waste too much time deciding whether they should put their money on you. Moreover, All or Nothing helps make sure a campaigner goes all out to raise funds. Note:
Campaigns following the All or Nothing principle are just easier to trust, and have higher credibility from the beginning to the end.
Total transparency with the world
Reaching your target amount isn’t as easy as you might think. You have to win the crowd’s heart to make them fund your dream. Your friends and family will obviously be the first few to fund you, but this transparency will make it possible and easier for those who don’t even know you to back you.
You're forced to stay extremely realistic
In this model, like we mentioned earlier, you either go big or you go home empty handed. Therefore, you're gunning for success right from the beginning as opposed to settling for whatever you get. This forces you keep your target as realistic as possible - to raise funds based on the strength of your community and just exactly the amount of money you need
, instead of conjuring a figure out of thin air and hoping for the best.
Building your community
When a fan who has funded you realizes that if you fail, you get nothing, they are obligated to help you make your project happen. They will be your loudspeakers and advocate your crowdfunding campaign to their networks - no questions asked. This, in turn, expands your community and fosters relationships that go beyond your crowdfunding campaign. Because fans are personally and monetarily invested in your campaign now, ideas to do more creative stuff, insights about your work and honest feedback will be regular conversations with them and so on.
It’s challenging, but if you pull it off, the benefits don’t end at receiving the funds. It benefits you as a creator of creative content! Got questions? Ask us!