How Much Money Can My Film Raise Through Reward Crowdfunding?
Financing independent films is one of the biggest challenges facing independent producers and makers. Thanks to crowdfunding, film-makers can fill their finance gaps, or even raise the entire budget for their film. But with so many wildly different examples of film crowdfunding campaigns, how do you know how much YOUR film could raise from the crowd through a reward campaign?
Average Amounts Raised
According to Kickstarter, the average amount successfully raised by most films through reward crowdfunding is less than $10,000. If fact, they find that reward crowdfunding campaigns with a target over $10k have a significantly lower rate of success than those with a lower target.
However, there are many examples of film crowdfunding campaigns that have raised much more. How much you can raise for your film will depend on a number of factors, such as the start quality of the cast, the quality of your campaign page and pitch video, the size of your existing audience and the effectiveness of the campaign that you run.
Ask yourself the following:
- How big is my existing audience - do I have a mailing list or a lot of social media followers?
- How big is my potential audience - do I have a star name attached as cast who could share to their own network? Or is there a related organisation or network that will help promote my campaign?
- How much time can I spend on my campaign - how highly do I rate my own team's promo skills and will we be able to tirelessly promote our crowdfunding campaign night and day?
The bigger the numbers in your answers to these questions - the more you can expect to raise. However, keep in mind that a small percentage of the people who are exposed to your campaign will actually click through to look at it. Of them, only a small percentage will contribute. Let's say 3% of your audience will contribute. So you're going to need to reach a lot of people in order to make your target.
Funds and Perks
So how much will each contributor typically offer to your campaign? Evidence suggests that the most popular perk in a crowdfunding campaign is around the $20 mark. However, campaigns are likely to make the bulk of their money from a $100 perk.
It Costs Money to Raise Money
Remember - crowdfunding is not all profit! Make sure you factor in your costs when setting your target. Are you paying a crowdfunding consultant? Are there costs attached to your perks, such as printed posters or travel costs? Most film crowdfunders will make sure to check the fees of the platform that they're using. Social Screen charges 4%. But many people forget to factor in the cost of payment transfers, which typically vary between 1% and 3%.
So. No magic formula, we're afraid, but we hope this post gives you some guidance to help you work out how much you could raise for your film through a reward crowdfunding campaign.
Ready to start building your campaign? Make sure your film website is created in Social Screen, then select 'crowdfund' within your film's dashboard.