“All or Nothing” Campaigns are much more successful.  Research shows that All or Nothing (AON) campaigns raise 50% more in funding, have a 30% higher chance of reaching their goal and AON campaigns have 153% more funders on average. This is a very large difference. Beyond that, platforms that are solely AON campaigns, have 200% more traffic than other sites.

Here’s why:

People want to be part of a successful campaign because it makes them feel good to be on the winning team.  They do not want to risk losing their money or wondering where it went.  AON guarantees you will not take their money unless you reach your goal. Risk removed.

When you remove the risk for your funders, they can focus on your offering.

The Psychology Says: All or Nothing is the Winner

Funders are people too and they don’t want to waste their hard earned money. Their goal is to fund low risk, high reward campaigns, and receive their order, on time, as described.  When the campaign is AON, this shows funders that you won’t accept their money until you know you can make good on your promise to deliver.

As a crowdfunding copywriter and consultant, I have worked with campaign teams on both AON and KIA campaigns (the KIA campaigners did so against my advice.)

But I notice that there is a different mentality and sense of urgency to the team that is fighting for the AON funding.

If your goal is achievable, it should push your team to discover where your customers are, what motivates them to buy and how to close the sale.

The KIA campaigners have a more relaxed, complacent attitude because they may feel whatever is raised is “good enough.”

As a professional crowdfunding consultant, I have seen some major breakthroughs in that space between “good enough” and surpassing the funding goal.  

Which one is right for your campaign?

The only time KIA is acceptable to funders is if your project can start with less than the full funding amount. In that case my advice is to lower your funding goal and create “stretch goals” for anything over the stated amount. This way you are still an AON campaign. Saying you are an AON campaign shows the public you will be responsible with their money and never move forward unless you know you can deliver their rewards.

The Benefits of AON:

As the statistics reflect, AON gives comfort to your backers, and pushes your team harder to reach the goal and learn to find solutions instead of feeling complacent with the amount raised.

The financial benefits are that most campaigns offer lower fees to AON campaigns. Conversely KIA campaigns that do not reach their goal will be required to pay even higher fees.

Definitions:

Two models of crowdfunding have become popular:

  • Keep-it-All (KIA) – The creator keeps the funding regardless if they reach the funding goal.
  • All-or-Nothing (AON) – The creator keeps the funding only if the goal threshold is met.

Crowdfunding platforms vary by their rewards system but you have to choose between KIA and AON ONLY in Reward or Donation campaigns:

  • Donation-based – No rewards
  • Reward-based – Non-financial rewards (e.g., products, t-shirts)
  • Lending-based/Debt – Financial returns (e.g., interest)
  • Equity-based – Equity returns (e.g., shares, dividends)

Bear in mind that you only have to choose between All or Nothing or Keep it all in a Donation/Rewards campaign. This does not apply to an Equity or Debt campaign. Also each platform has unique rules regarding each type of funding.  For example, Kickstarter is completely All or Nothing whereas Indiegogo has both AON and KIA but the rates are higher for KIA (or Flexible Funding as they call it).  Lastly, if you surpass your goal, there is no penalty and you keep everything.

In closing, AON funding should be your clear choice. Not only will it increase your chances at getting funded but it will help you push your campaign to its full potential.