Split Crowdfunding!
People love to support great products and projects, however; many crowdfunding campaigns fail to meet their funding goal, others don’t deliver on their promise, therefore, to avoid post-crowdfunding frustration and disappointment for both; campaigners and backers, Crowdlify introduced Commits; a phase where backers commit their support to a campaign only with their email instead of actually pre-ordering and making a payment.
The Commits phase helps eliminate refunds, it also allows campaigners easily and quickly assess product demand and make informed and timely production decisions, which ultimately leads to less production waste and increased efficiency.
Reaching a Commits goal is a very good indicator -for you and your backers- that your product is desired, and by the time the actual pre-order process starts; your chance of reaching your funding goal is much higher.
The Commits phase helps you truly engage with your early adopters; listen to their feedback and quickly improve on your product while you still can.
To summarize a Split Crowdfunding process:
Phase 1 — Commits: Backers commit their interest to pre-order by entering their email; in doing so, they get a deal price.
Phase 2 — Pre-orders: When the target number of commits is reached, all committers will be notified in an email that the pre-order phase has just started. Committers will then be able to pre-order at the deal price offered to them during the “Commits” phase. Backers who come during the “Pre-orders” phase will also get a deal price that can be equal or higher than the Commits deal price.
The Split crowdfunding process (Two-phase crowdfunding) helps you answer the following questions /concerns;
- Is my new product concept desired?
- Is my product fit for this market? will there be enough demand?
- How much do I need to manufacture / order for this production round?
- Is it a good idea to increase production capacity / order volume now?
- Is this product still in-demand? is it ready for another production round?
- What do I need to do to improve this product / project?