Crowdfunding in Video Games: A Comprehensive Guide

Crowdfunding has revolutionized the way video game developers fund their projects, allowing them to bypass traditional publishing routes and connect directly with their audience.

Platforms like Kickstarter and Fig have made it easier for developers to raise funds and build a community around their game. The most successful crowdfunding campaigns often have a clear and compelling pitch, as seen in the case of Pillars of Eternity, which raised over $3.9 million in 2012.

Developers can use crowdfunding to validate their idea, gather feedback, and build a loyal following. This approach has been used by many successful games, including the Torment: Tides of Numenera campaign, which raised over $4.3 million in 2013.

A well-structured crowdfunding campaign can also help developers set realistic goals and timelines, as seen in the case of the Shadowrun: Dragonfall campaign, which raised over $1.8 million in 2014.

Worth a look: What Is a Crowdfunding Campaign

Crowdfunding in video games is a way to raise funds from a large number of people, typically through online platforms like Kickstarter or GameFund.

It's a popular choice for indie game developers, who often use it to fund their projects.

Setting realistic funding goals is crucial for a successful crowdfunding campaign. You need to factor in expenses such as software licenses, art assets, music composition, marketing, and contingencies for unexpected challenges.

The costs of game development can add up quickly, so it's essential to be realistic about what you'll need to spend. Aiming too high can be discouraging for backers, while setting goals that are too low may not give you enough to work with.

Consider the rewards you're offering and the costs associated with producing and shipping them. For example, if you're offering a physical reward, you'll need to factor in the cost of production and shipping, as well as any potential fulfillment fees.

Here are some key costs to consider when setting your funding goals:

By setting achievable funding goals, you can instill confidence in backers that their contributions will be used wisely to bring the project to fruition.

A winning prototype is built around the core gameplay mechanics. This is the heart of the game, demonstrating how players interact with the game world, what makes the game unique, and the rules that govern it.

To focus on the core gameplay mechanics, you should create a prototype that showcases the fundamental mechanics of your game. This is the most important aspect of your game, and it's what will set it apart from others.

A good prototype should include just enough features to make the game playable and enjoyable. This is known as a Minimal Viable Product (MVP). It's not about creating a complete game, but rather about showing enough content to explain its functions and potential clearly.

Here are the key elements to include in your MVP:

By focusing on the core gameplay mechanics and creating a solid MVP, you'll be well on your way to building a winning prototype.

A well-crafted campaign strategy is crucial for a successful crowdfunding campaign in video games.

Setting a realistic funding goal is essential, as seen in the example of the "Pillars of Eternity" campaign, which aimed for $3.3 million and exceeded it by over $1 million.

To create a sense of community, consider offering exclusive rewards to early backers, like the "Wasteland 2" campaign did with its "Digital Deluxe" package.

A clear and concise campaign message is also vital, as demonstrated by the "Shadowrun Returns" campaign, which effectively communicated its vision and goals to backers.

Explore further: Crowdfunding Campaign

A successful crowdfunding campaign starts months before you push the 'live' button. Building your audience is crucial, and you can view detailed blog posts about this by Chris Z.

Sending your audience to your pre-campaign page on the platform you're using will provide the best results for your campaign and great insights on how well your campaign will perform once live. This is especially true for video game projects, where you'll want to maximize commercial success.

Campaigns that reach 20% or more of their funding goal in the first 48 hours are the most likely to be funded. This initial momentum is key, and your followers will help you here.

On average, 10 to 12% of the followers of a campaign back it in the first 48 hours. By the end of a campaign, about 20% of the followers have backed the campaign. This means your followers will still matter and help you even if they don't convert on the first day.

Your landing page can provide links to your Steam page and your crowdfunding pre-campaign page, but collecting your fans' emails provides many more opportunities. You can promote both your Steam page and your crowdfunding campaign to them.

Here are some key data points to keep in mind:

Building a strong campaign is crucial to the success of your crowdfunding project. Create a clear and concise template to guide your campaign's structure.

Use the following broad categories to draft your campaign page: Key features, USP overview + animated GIFs, Links to store page / Discord / Social Networks, (if you have a demo) Link to play the Demo, Detailed key features / gameplay + animated GIFs, (only once the funding goal has been reached) Stretch Goals, (optional) Community Goals, Rewards table, description and content, Platforms on which the game will be available, Languages, Team presentation, Timeline of the project, Why Kickstarter?, Risks, (optional) Environmental commitments, (optional) Project Budget.

High-quality GIFs are essential to illustrate your game descriptions. Include them as often as possible to showcase your game's features.

Running a campaign with a demo available is highly recommended. If a demo isn't feasible, provide plenty of GIFs and videos to give backers a sense of your game.

Here are the top four sections to focus on: Key features, USP overview + animated GIFs, Links to store page / Discord / Social Networks, (if you have a demo) Link to play the Demo, Detailed key features / gameplay + animated GIFs.

A well-presented campaign is key to attracting backers. Make sure to include high-quality GIFs and videos to showcase your game.

Building a strong online presence before launching a campaign is essential. Create a professional website or landing page to showcase your game's concept art, gameplay footage, and developer insights.

Intriguing read: How to Play the Pop It Game?

Offering attractive rewards is a crucial part of a successful crowdfunding campaign. It's essential to make your backers feel valued for their support, and exclusive in-game content is a great way to do this.

Consider offering limited edition merchandise, like a unique role to be displayed on your Discord, as seen in the case of Cyan Worlds' Firmament campaign. This type of reward will be valued by your most engaged fans.

A good way to avoid having your main reward tier compared to the game being available at launch is to add exclusive perks. For example, Thimbleweed Park offered backers that pledged $50 or more to have their name in the game's phonebook.

You can also offer a range of rewards based on contribution levels, as suggested by the article. Tailor your rewards to appeal to different segments of your audience and make them feel valued.

Here are some examples of attractive rewards:

Remember to be mindful of the production costs and pricing for physical rewards, and make sure you have properly sourced the production for the items and have found fulfillment partners to handle the shipping to your backers.

Crowdfunding a game from its prototype stage requires a solid foundation to attract backers.

Creating a professional website or landing page is crucial, showcasing concept art, gameplay footage, and developer insights to give potential backers a clear understanding of your project.

Engaging with your target audience on social media platforms like Twitter, Facebook, and Instagram helps build a community around your project, making it easier to share updates and gather feedback.

Building a strong online presence before launching a crowdfunding campaign is essential to attract potential backers, just like creating a professional website or landing page for your game.

By establishing a strong online presence, you can create a buzz around your project, making it more likely to succeed on crowdfunding platforms.

For more insights, see: What Are Popular Crowdfunding Platforms

Having a solid campaign strategy is crucial for success, and one key element is the impact of prototypes on crowdfunding success. A prototype can make the game tangible, giving backers a clear idea of what they're investing in.

Additional reading: Wefunder Success Stories

Prototypes build trust and credibility by demonstrating a working version of the game, showing that you're committed to bringing it to life. This is especially important for backers who want to feel confident in their investment.

Early feedback on a prototype can guide improvements in gameplay, design, and features, making it a valuable tool for refining your game. I've seen it firsthand – a well-designed prototype can spark a lot of excitement among the gaming community.

Here are the key benefits of prototypes in a nutshell:

By incorporating prototypes into your campaign strategy, you can create a more engaging and convincing pitch that resonates with potential backers.

Building a strong relationship with your community is key to a successful crowdfunding campaign. Regular updates are crucial, so make sure to keep backers informed about the project's progress.

Developer diaries are a great way to give a behind-the-scenes look at the game's development process. This will make backers feel like they're a part of something special.

Live streams can be used to showcase gameplay, answer questions, and build excitement around the project. They're a great way to interact with backers in real-time.

Q&A sessions are also essential to keep backers engaged and informed about the project. They can be done through live streams, email, or even social media.

Encourage feedback and input from your community to make them feel like active participants in the game's development process. This will not only help shape the game but also build a loyal community around it.

When choosing a crowdfunding platform for your video game, consider your options carefully. There are multiple platforms to consider beyond the popular choices like Kickstarter and IndieGoGo.

Kickstarter and IndieGoGo are indeed well-known platforms, but they might not be the best fit for every game. Fig, Patreon, and SeedInvest are alternative platforms that cater specifically to the gaming community, offering unique features and benefits.

Fig, for example, allows developers to raise funds from a large community of gamers, while Patreon is great for ongoing support and community engagement. SeedInvest, on the other hand, offers a more traditional investment model that can be beneficial for developers looking to raise larger sums of money.

A fresh viewpoint: Indiegogo Film Help

Consider exploring alternative crowdfunding platforms to diversify your fundraising efforts and reach different audiences. Platforms like Fig, Patreon, and SeedInvest offer unique features and benefits.

Kickstarter and IndieGoGo are popular choices, but they may not be the best fit for every project. Alternative platforms can help you tap into specific niches and communities.

Platforms like Fig cater specifically to the gaming community, making them a great choice for indie game developers. Fig offers unique features and benefits that can help you reach your target audience.

Patreon is another platform that allows you to diversify your fundraising efforts by offering ongoing support from fans. This can be a great way to build a loyal community and generate consistent revenue.

SeedInvest is a platform that allows you to raise funds from accredited investors, offering a unique way to diversify your fundraising efforts.

On a similar theme: How to Start a Crowdfunding Platform

Kickstarter is a popular platform for video game projects, with over $1.5 billion pledged to games since its inception.

Indiegogo, on the other hand, has a more flexible funding model that allows for flexible funding goals and flexible pricing for backers.

Kickstarter's fixed funding model means that if a project doesn't meet its funding goal, the project creators don't receive any of the pledged funds.

In contrast, Indiegogo's flexible funding model allows project creators to keep all the funds raised, even if they don't meet their funding goal.

Kickstarter's fees for video game projects are 5% of the total funds raised, plus a payment processing fee of 3-5%.

Indiegogo's fees for video game projects are 4% of the total funds raised, plus a payment processing fee of 2-3%.

Ultimately, the choice between Kickstarter and Indiegogo will depend on the specific needs and goals of your video game project.

A fresh viewpoint: Indiegogo Fees

Let's take a look at some campaign examples that showcase the power of crowdfunding in video games. The Firmament campaign raised $1,433,000, a significant amount considering its initial goal was $1,250,000, which was reached just two days before the end.

One notable aspect of the Firmament campaign is its similarity to the Myst campaign, which also had a large number of backers. In fact, 14% of Firmament's backers were also backers of Myst, a surprisingly high ratio considering the success of the Myst campaign.

The Firmament campaign also highlights the importance of setting realistic goals and building a strong community. With 18.4k backers, it's clear that the campaign's creators were able to effectively engage with their audience and build a loyal following.

Looking at the numbers, it's clear that crowdfunding is becoming a more mature platform. In the first half of 2019, the number of funded projects reached its highest level since 2016, with a success rate of 28%. This is a testament to the effectiveness of the platform and the growing trust of developers and backers alike.

Here are some key statistics from the first half of 2019:

Crowdfunding in video games can be a thrilling way to bring your project to life, but it's not without its challenges. Figuring out how much money to ask for is hard, and aiming too high or too low can be detrimental to your campaign's success.

Choosing the right goal is crucial, as it sets the tone for the rest of your campaign. If you aim too high, you might not get anything, and if you aim too low, you might not cover all your costs.

A good pitch is essential to grab people's attention and explain your fantastic project. You need a story that will make people remember you and want to back you.

Keeping people interested is a full-time job, and you have to keep talking about your project and updating people to keep them excited. If you do, people might remember you.

Sending out rewards can be complicated, and it's essential to know what backers will get and ensure you deliver. If backers aren't happy, they might give you bad feedback.

Dealing with delays can be tricky, and talking honestly with backers when this happens is crucial. It's better to be transparent and explain the situation than to hide it and risk losing their trust.

Budgeting for fees is a challenge, as crowdfunding sites take a cut of the money you raise, and there are other costs to consider. You must plan carefully to ensure you have enough money left for your project.

Here are some key challenges to consider when crowdfunding a video game project: