What is all or nothing vs flexible crowdfunding?

FAQ

CrowdFundingWhat is

‘all or nothing’ vs

‘flexible’ CrowdFunding?

There are two main approaches you need to be aware of when

raising funds on CrowdFunding websites

‘All or Nothing’ means that if you do not reach your funding

target you do not get any of the funds that your supporters have pledged

towards your project

‘Flexible’ funding means that if you do not reach your funding

target you still get all the money that your supporters have pledged

towards your campaign

Each type of funding has its own benefits and drawbacks

Lets have a look at some of the issues

Your supporters will be more willing to support an ‘All or Nothing’ campaign

This generally means you have set a more realistic funding target and that fully funded projects have a greater

chance of success

If your project does not receive the full amount you asked for

your supporters will wonder if you are able to complete the project with

only a portion of the funding

It is easier to get support if you have an ‘All or nothing’

campaign because your supporters will not be charged if you do not reach

your funding target

On the other hand if you decide to go for a ‘flexible’ campaign

your supporters are normally charged immediately

when they make a pledge

In most cases CrowdFunding websites that offer ‘Flexible’ funding will charge you a higher admin fee if

you do not reach your funding target

You need to be aware that your choice will have an impact on the success of

your project

You therefore need to carefully consider which type of

funding approach you are going to use for your CrowdFunding campaign

For more tips on running a successful CrowdFunding campaign download a free copy of our online

interactive magazine from the

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store

There are many more resources available to support your CrowdFunding efforts at

CrowdFundingFocus.com

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