The growth of Crowdfunding in the United States seems likely to continue and, I suspect, it to be further cemented as a vital tool for cause marketers. Ethan Mollick, at the Wharton School, has a taken a first crack at some early learning about what works in crowdfunding that has application for both cause marketers and entrepreneurs.
Mollick used Kickstarter as his dataset, with its 48,500+ projects and $237+ million in combined funding
Here’s what Mollick’s analysis shows:
- Because the greater the size of the founder’s social network the more likely the project is to be funded, it pays to be popular… especially on Facebook.
- Polished pitches are the most likely to be funded. Relatively few succeed without a video, for instance.
- There seems to be a geo-cultural component to successful pitches. Films are more likely to be funded in Hollywood, while music projects are more likely to be funded in Nashville.
- Sixty-day Kickstarters are less likely to be funded (29 percent) than 30-day pitches (35 percent).
- Being highlighted on the Kickstarter website is like being kissed by the success angel; 89 percent get funded vs. only 30 percent of those that weren’t thus featured.
- Cities with more ‘creatives’ tend to fund more projects than those with fewer creative individuals.
Labels: cause marketing, Crowd-Sourced Cause Marketing, crowdfunding, Ethan Mollick, Facebook, Kickstarter, The Wharton School