Are you looking for alternative funding for your next big game? Crowdfunding may be the answer to your financial challenges. This powerful option tackles raising money and building a dedicated fanbase around your game. A game-changer for small indies just starting or studios looking to capture a new audience, crowdfunding may be the difference between your game moving from concept to reality. Crowdfunding is a great option, but it's important to remember it's a tool, not a guarantee of success. To make the most of it, you'll need to invest time and effort into building a strong, engaged community that's excited about your game. This blog is our guide for navigating the world of crowdfunding with an overview of what you need to know to launch a successful campaign for your video game.

Is crowdfunding right for you?

Crowdfunding is a viable way to raise funds, but it's not a perfect solution for all games. Games that crowdfunding may be best for fall into three buckets:

• Nostalgia based games
  Crowdfunding thrives on nostalgia and classic games being brought back to life in new ways, leveraged by an existing fan base for the initial wave of financial backing.
• Proof of concept games
  Beyond nostalgia, crowdfunding validates game ideas. Companies use it to gauge audience interest and convince publishers of a project's potential.
• Experimental games
  Crowdfunding can raise money for cutting-edge projects like experimental game genres or any game that might fall into a very niche category.

Even if your game doesn't fit these categories perfectly, crowdfunding can still be viable. Beyond genre, the marketing and PR benefits of promoting your project on a crowdfunding platform can be significant. Successful campaigns use them to raise money and build communities simultaneously. Unlike investors, crowdfunding creates a fanbase of excited advocates championing your project. It's even possible to attract a publisher from the hype your loyal community generates from a well-run campaign.

Understanding crowdfunding platforms

If you decide that a crowdfunding campaign is right for you, your next step is to choose a platform. The number of platforms available for crowdfunding has expanded over the years, giving developers more choices. From Kickstarter to Indiegogo, all the way to more independently geared platforms like GoFundMe and Patreon, you want to be aware of several factors:

• Audience size: Consider the number of people a potential crowdfunding platform can reach. More people = more eyes on your campaign.
• Fee structure: Knowing what fees are associated with the platform, if any, can affect the amount of money you receive at the end of your campaign.
• Funding model: Each platform has its own structure and rules on campaign length, money collection, and how it vets campaigners.
• International reach: Not all platforms are available globally. If you are targeting a specific region, ensure the platform you choose provides services in that area.

Now that you know what to look for, let's compare two popular crowdfunding platforms, Kickstarter and Indiegogo.

You can learn more about each platform's offerings by visiting www.kickstarter.com and www.indiegogo.com. *Indiegogo's detailed fee structure can be viewed here.

Building a successful crowdfunding campaign

Now that you know what to look for in a crowdfunding platform, it's time to consider your strategy. When the first wave of video game success stories started cropping up in 2012, game developers didn't need much to take advantage of this new tool for games like Elite Dangerous and Project CARS. It was possible to come to platforms like Kickstarter with only a rough idea and some concepts for what your finished game could be. As time has passed, having a game plan has become a must. Before launch: Be prepared

• Show your game's progress. Today's gamers expect more than just ideas. Have a significant chunk of your game developed – gameplay videos are now standard.
• Set realistic funding goals. Aim for a funding amount you can reach and have a clear plan for spending it.
• Include stretch goals based on funding amounts. Plan additional features unlocked at higher funding milestones to keep backers excited and engaged.
• Create reward tiers for loyal fans. Offer different donation amounts with increasing backer perks – think digital rewards, discounted game copies, or exclusive merchandise. Limited-edition items can create a sense of urgency.
• Remember to market your campaign and build buzz. Announce your campaign well in advance! Get people excited with teasers and a clear call to action.

Launch day and beyond: Keeping the momentum going

• Humanize your campaign. Connect with your audience through AMAs or interviews. Let them see the faces behind the game.
• Communicate with your community. Regular updates, videos, and responses to questions show backers you care and keep them invested.
• Transparency is key. Share your successes and challenges. Your audience appreciates honesty. Treat them like partners in your journey.

Remember that your crowdfunding audience is also your game's community. It greatly appreciates game developers who share their stories, as they are an integral part of the journey to success. Treat them just like you would want to treat your most loyal fans, and make them a part of the conversation around your game.

Challenges with crowdfunding

Despite all your best efforts, with any endeavor, there is always the possibility of failure. There are numerous reasons why a crowdfunding campaign might fail, but failure doesn't necessarily mean your game has reached the end of the road. Taking the correct steps to recognize these reasons is the first step in anticipating and planning for them.

• High funding goal: Setting an unrealistic funding goal can scare away potential backers, especially for new studios.
• Free-to-play model: People might be hesitant to back a game they can play for free eventually.
• Mobile games/games for kids: These categories might not be attractive to backers due to their typically low price points or difficulty getting parental funding.
• Slow start: Failing to raise a significant portion of the goal early on can discourage further backers.
• Weak pitch/early development stage: A poorly presented concept or a lack of concrete progress on the game can make it a hard sell.

If you approach things correctly, you can still cultivate success even if you don't reach your funding goal. Analyze what went wrong and adjust your approach. You may need to come back with a lower goal and a playable core experience to attract backers for additional features. Even if you don't hit your target, the publicity from your campaign can still attract investors, giving you a path for private funding. This can even lead to finding a publisher, especially if you have a solid crowdfunding effort. Remember, crowdfunding isn't just about raising money. A well-run campaign can build a community and attract support from other sources.

Put your best foot forward with Xsolla Funding Club

Even if your crowdfunding campaign doesn't generate the money you need, you still have one more option. For studios who want the advantages of partnering with a publisher without giving up creative autonomy, Xsolla Funding is the solution for you. Xsolla Funding allows you to establish connections and conversations with interested investors and publishers and set your game toward success. Benefit from the wisdom of industry experts on the best way to position your game with demo days, pitch events, and educational materials. You can also apply for funding that's 20 times higher than the industry average and obtain exclusive pricing from co-development and outsourced studios.

Conclusion

Crowdfunding is a powerful tool for developers to raise funds and build a passionate community. However, success hinges on a clear and exciting pitch that convinces backers your project is achievable. Building momentum before launch and keeping your audience engaged throughout the campaign are crucial. Remember, crowdfunding is about more than just money—it's about fostering a loyal fanbase. By actively listening to your community's needs and expectations, you'll cultivate excited customers and set your game up for long-term success. Xsolla can be your trusted partner, ready to support you with a wide array of tools and services to help you on your journey to success. If your studio is ready for a helping hand, contact Xsolla's team of experts and book a meeting today. Originally published on June 2, 2022
Updated on June 13, 2024