The ABCs of Crowdfunding: A Complete Glossary for Campaign Success

Crowdfunding is a dynamic and evolving field, full of unique terms and jargon that can be overwhelming for newcomers and even experienced creators. To help you navigate the world of crowdfunding, we've compiled a comprehensive glossary of terms from A to Z.

Whether you're launching your first campaign or looking to deepen your understanding, this guide will be your go-to resource.

(Last Updated November 5, 2024)

A

Acquisition Cost: The total cost of acquiring a new backer for your campaign, including marketing and promotional expenses. This term is traditionally specific to creators using performance marketing.

Add-Ons: Optional items backers can choose in addition to their selected reward tier. They allow backers to personalize their support and can boost your overall funding.

Analytics: Metrics that track campaign performance, such as page views and pledge rates.

Assets: The visuals, videos, and written materials you use to tell your project’s story. Well-prepared assets build trust and make your campaign look professional.

All-or-Nothing: Kickstarter’s funding model. If you don’t reach your funding goal, you won’t receive any of the pledged funds—adding urgency for backers.

Audience: The specific group most likely to support your project. Define this group by interests, needs, or behaviors to shape targeted messaging and outreach.

B

Backers: An individual who pledges money to a crowdfunding campaign, supporting the project and often receiving rewards in return.

Beta Testing: The process of testing a product with a group of users before its official launch to gather feedback and make necessary improvements.

Budget: A thorough breakdown of your campaign’s costs, from production to marketing. A clear budget helps you set a realistic funding goal and avoid over-promising.

Branding: Your project’s unique identity, including logo, color scheme, and messaging. Cohesive branding makes your campaign memorable and attracts the right audience.

C

Campaign Page: Your project’s main page on Kickstarter, where you tell your story, share rewards, and outline goals. Invest time in making this page visually appealing and informative.

Campaign Video: A promotional video that introduces the project, explains its goals, and encourages potential backers to support it.

Creator: The individual or team behind a crowdfunding campaign who is responsible for developing and managing the project.

Creator Dashboard: A real-time data hub provided by Kickstarter to help creators monitor their campaign’s progress. This dashboard shows key metrics, such as total funds raised, backer count, average pledge amount, traffic sources, and conversion rates.

Community: The network of supporters and advocates who share your project with others. Engage actively with your community for a stronger launch and continued support.

Conversion Rate: The percentage of visitors who back your campaign. A low conversion rate might mean your pitch needs refining or that the rewards aren’t compelling enough.

Copywriting: Persuasive, clear text that conveys your project’s value and urgency. Good copywriting connects emotionally with potential backers, helping convert interest into pledges.

Cost-Per-Click (CPC): A metric for tracking the cost-effectiveness of your ads. CPC helps you measure how efficiently your ads are driving people to your campaign page.

Crowdfunding: The act of raising money by collecting small contributions from many people. Crowdfunding on Kickstarter helps not only with funding but also with building a community around your project.

D

Donation-Based Crowdfunding: A type of crowdfunding where backers donate money to support a cause or project without expecting any rewards in return. Please note this type of crowdfuning is not allowed on Kickstarter—learn more about our rules.

Deadline: The end date for your campaign. Deadlines add urgency, often resulting in a boost in pledges as the deadline approaches.

Demographics: Characteristics of your target audience, like age, location, and interests. Knowing this helps tailor your messaging to the people most likely to back you.

Direct Traffic: Visitors who access your campaign page directly, often due to word of mouth or direct links. High direct traffic can indicate strong organic interest.

Distribution: The process of delivering rewards post-campaign. Plan carefully to ensure a smooth, cost-effective delivery experience for backers.

Draft Mode: The initial stage of creating a crowdfunding campaign where the project page is being developed and is not yet live to the public.

E

Equity Crowdfunding: A form of crowdfunding where backers invest in a company in exchange for equity shares. Please note this type of crowdfuning is not allowed on Kickstarter—learn more about our rules.

Early Bird Rewards: Special perks for those who pledge early. These create urgency, incentivizing backers to act fast and help your campaign gain initial momentum.

Engagement: Interaction with backers and followers, like responding to comments and messages. High engagement shows backers you’re active and invested in their experience.

Email Marketing: Campaign updates and announcements sent to an email list of potential backers. An email list can be a powerful way to convert interested followers into pledgers.

Exclusivity: Unique rewards or perks that only backers can access on Kickstarter. Offering exclusivity fosters loyalty and makes backers feel valued.

Estimated Delivery: The timeframe you promise to fulfill rewards. Set a realistic estimate to build trust and manage backer expectations.

Execution Plan: The actionable steps you’ll take to deliver your campaign, from pre-launch to fulfillment. A solid execution plan is essential for staying organized and meeting backer expectations.

F

Funding Period: The duration of time that a crowdfunding campaign is active and accepting pledges.

Funding Goal: The minimum amount you need to bring your project to life. Be realistic and transparent about your funding needs to avoid underfunding.

Fulfillment: The process of producing, packing, and shipping rewards to backers. Plan this in advance to avoid delays or unexpected costs.

Feedback Loop: Gathering backer feedback and using it to improve the project. A feedback loop keeps backers involved and invested in your project’s success.

First-Time Backer: A person supporting a crowdfunding campaign for the first time. Clear, simple explanations on your campaign page can make it easier for newcomers to back confidently.

G

Graphic Design: Visual assets, including your campaign logo, reward images, and infographics. High-quality design makes your campaign look professional and trustworthy.

GIFs: Short animations used to show your product in action or highlight rewards dynamically. GIFs are eye-catching and can enhance your campaign page’s appeal.

Grassroots Marketing: Low-cost, community-driven marketing efforts, like word-of-mouth referrals and social shares. Grassroots efforts can build a loyal backer base and promote authenticity.

H

Hyperlocal Crowdfunding: Campaigns that target a very specific geographic area or community.

Hybrid Funding: Combining traditional financing (like loans or investments) with crowdfunding. Hybrid funding can offset costs and add credibility to your Kickstarter campaign.

Hook: The compelling message that immediately captures attention. A strong hook, like a striking visual or bold statement, increases the chance visitors will stay on your page.

I

Influencer Marketing: Collaborating with influencers to promote your campaign to their followers. Partnering with influencers who align with your project’s niche can boost your visibility and credibility.

Inventory: The stock of rewards or products prepared for backers. Keeping close track of inventory helps prevent overpromising and ensures smooth fulfillment.

Impressions: The total number of times people view your campaign content. High impressions indicate good visibility, but engagement metrics like clicks and conversions tell a fuller story.

J

Jumpstart: A term used to describe the initial burst of activity and pledges that a campaign typically experiences shortly after launching.

Journey: The story of your project, including its origin, development, and vision. Sharing your journey helps backers connect emotionally, creating a stronger incentive to support you.

Joint Ventures: Partnerships with other creators or brands to promote a shared campaign. Collaborating can bring new audiences and add value to both campaigns.

K

Kickstarter: A launchpad to bring creative ideas to life.

Key Performance Indicators (KPIs): Metrics to measure campaign success, such as funding progress, conversion rates, and average pledge amount. Tracking KPIs allows for timely adjustments.

L

Late Pledges: An opportunity for backers to support a project and receive rewards even after the official funding period has ended.

Launch Day: The first day your campaign goes live. Launch day is crucial for building momentum, and well-planned pre-launch promotion can help you hit the ground running.

Limited Rewards: Exclusive reward options available in limited quantities. These create urgency and can encourage early pledging from backers.

Lead Time: The time required to prepare for your campaign. Adequate lead time allows for building assets, creating a marketing plan, and developing a pre-launch strategy.

Landing Page: A pre-launch page to capture emails and gauge interest. A landing page can help build an email list of potential backers and provide valuable insights into your audience.

M

Marketing Plan: A strategic plan outlining the promotional activities and tactics a creator will use to attract backers to their campaign.

Media Kit: A package of promotional materials, including high-quality images, videos, and press releases. A media kit makes it easy for bloggers, journalists, and influencers to promote your project.

Marketing Funnel: The steps potential backers go through before pledging, from initial awareness to decision-making. A well-structured funnel guides backers towards support.

Milestones: Key achievements in your campaign, such as reaching 50% of your goal or securing your 100th backer. Celebrating milestones with updates or bonuses keeps momentum going.

Mockups: Visual representations of your product, showing what backers can expect. High-quality mockups make your rewards more tangible and build anticipation.

Market Research: The process of gathering information on your target audience and competition. Good research helps shape your messaging and position your project effectively.

N

Niche Targeting: Focusing your campaign on a specific group with shared interests. Niche targeting helps you connect deeply with backers likely to appreciate your project.

Net Promoter Score (NPS): A metric indicating how likely backers are to recommend your project. NPS is a good indicator of satisfaction and loyalty.

O

Overfunded: A term used to describe a campaign that has raised more money than its initial funding goal.

Organic Reach: Traffic generated without paid ads, often through social shares or word of mouth. Organic reach is a sign of genuine interest and can be built through consistent, valuable content.

Outreach: Efforts to connect with potential backers, like emailing your list, contacting the press, or collaborating with influencers. Effective outreach can dramatically increase your campaign’s visibility.

Optimized Content: Carefully crafted content designed for SEO and engagement. Optimizing your campaign content helps it reach the right audience on Kickstarter and beyond.

P

Playtesting: Evaluating a game with a small group of users before its final release. Players provide feedback on mechanics, balance, enjoyment, and usability, helping developers identify issues and improve the gameplay experience. Sharing playtesting results can generate excitement and reassure backers about the game’s quality and progress.

Pledge: The amount of money backers contribute to your campaign. Pledges vary by reward tier, with higher tiers typically offering more value.

Pledge Redemption: The process by which backers confirm and finalize their reward selection after a campaign successfully reaches its funding goal. Following campaign completion, creators often send surveys or use pledge management tools to allow backers to specify details (like color, size, or other preferences) for their chosen rewards.

Post-Campaign: The period after a crowdfunding campaign ends, during which creators manage fulfillment, continue engaging with backers, and may seek additional funding.

Pre-Launch: The period before a crowdfunding campaign goes live, involving preparation and building anticipation among potential backers.

"Projects We Love": A recognition badge awarded by Kickstarter’s team to select projects they find inspiring or well-executed. This badge often boosts a campaign’s visibility and credibility.

Prototype: A preliminary version of your product that demonstrates key features. Showing a prototype builds confidence and gives backers a clearer idea of the final result.

Project Build: Refers to the entire process of planning and setting up your Kickstarter campaign before it goes live. This includes crafting a compelling project page, developing a strong pitch, creating visuals and a campaign video, setting a realistic funding goal, and designing reward tiers.

Public Relations (PR): Efforts to generate positive press and increase awareness. PR can enhance credibility and drive additional traffic to your campaign.

Performance Marketing: Advertising with a budget to promote your campaign on social media or search engines. Paid ads can expand reach quickly, especially if targeted effectively.

Q

Quality Assurance: The process of ensuring that a product meets specified requirements and standards before it is delivered to backers.

Quality Control: Ensuring rewards meet promised standards before shipping. Proper quality control keeps backers satisfied and helps prevent negative feedback.

Quick Response: Timely replies to backer questions and comments. Being responsive builds trust and makes backers feel valued.

R

Rewards: Incentives offered to backers in exchange for their support, often tiered based on the amount pledged.

Risk Assessment: The process of identifying potential risks in a project and planning how to mitigate them.

Reward Tiers: Different levels of rewards offered based on pledge amounts. Thoughtfully designed tiers provide value at every level, incentivizing higher pledges.

ROI (Return on Investment): The value gained from your campaign relative to costs. High ROI signifies a well-executed campaign with strong engagement.

Reviews: Public feedback from backers or media that can build trust. Positive reviews can attract new backers, while constructive feedback can help improve your project.

S

Social Proof: The influence that other people’s actions have on an individual’s behavior, often used in crowdfunding to build credibility and attract more backers.

Stretch Goals: Additional funding targets set beyond your initial goal. Stretch goals motivate continued pledging and often offer extra perks or product upgrades.

Strategy: Your overarching plan for achieving a successful campaign, covering everything from pre-launch to fulfillment. A strong strategy keeps your campaign focused and organized.

Surveys: Questionnaires sent to backers to confirm reward choices and shipping details. Surveys help ensure accurate fulfillment.

Superbacker: A dedicated supporter recognized by Kickstarter for backing a high number of campaigns. Superbackers often understand the nuances of crowdfunding and are highly engaged in the Kickstarter community.

T

Timeline: Your project’s schedule, from production to reward delivery. A clear timeline demonstrates preparedness and helps build trust with backers.

Traffic: The number of visitors to your campaign page. High traffic with low pledges may suggest that the page needs optimization.

Transparency: Honest communication about progress, challenges, and plans. Transparency builds trust, especially if delays or issues arise.

U

Updates: Regular posts or emails to keep backers informed about progress, milestones, or challenges. Consistent updates foster trust and transparency, keeping backers engaged and excited throughout the campaign.

User-Generated Content (UGC): Content created by your backers or followers, such as social media posts or testimonials. UGC is highly valuable for building social proof and can encourage others to support your project.

Urgency: A sense of time-sensitivity that motivates backers to pledge sooner rather than later. Limited rewards, Early Bird tiers, or countdowns can create urgency, boosting conversion rates.

Upsell: Offering backers additional rewards or add-ons after they’ve pledged. Upselling can increase average pledge amounts, especially if the add-ons are unique or exclusive.

Unique Selling Point (USP): The distinctive feature that sets your project apart. Your USP should be clear in your messaging, helping potential backers understand why your project is worth supporting.

V

Vision Statement: A brief description of the long-term goals and aspirations of a project or campaign.

Virality: The potential for your campaign to be shared widely on social media or through word of mouth. Strong visuals, compelling rewards, and shareable content increase virality and help attract new backers organically.

Value Proposition: The core benefit that backers receive from supporting your project. A clear value proposition, like “the first of its kind” or “exclusive access,” helps convey the appeal of your project.

Visuals: Images, infographics, and design elements that enhance your campaign page. Quality visuals capture attention, make information digestible, and convey professionalism.

W

Whitelisting: Running ads directly from partner or influencer accounts, extending your reach to a larger or more targeted audience. Whitelisting adds credibility to promotions and can attract more interest from new backers.

Workflow: The planned sequence of tasks for managing your campaign, from pre-launch to fulfillment. Streamlined workflows ensure a smoother process, reducing the risk of delays and errors.

Word-of-Mouth: Organic promotion generated by backers who share your project with others. Word-of-mouth marketing is highly effective for crowdfunding, often bringing in backers who trust peer recommendations.

Wholesale: Selling bulk orders of your product at a discounted rate, often to retail partners. Wholesale offers can increase pledges and open up additional distribution channels post-campaign.

Wishlist: A list of potential backers interested in your project before it launches. Building a wishlist via pre-launch email capture helps ensure strong initial support.

X

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Y

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Z

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Crowdfunding is a powerful tool for bringing creative projects to life, but understanding the terminology is crucial for success. We hope this glossary has provided you with a clear and comprehensive guide to the key terms in the crowdfunding space. Whether you're a new creator or a seasoned veteran, mastering these terms will help you navigate your next campaign with confidence.

For more tips and resources on running a successful crowdfunding campaign, visit Kickstarter's Creator Resources and join our community of innovators and backers.