Campaigns typically go through a mid-way slump (also called the Valley of Death). When this hits, stretch goals are a powerful tool for generating additional funds. It’s also a tool to get backers even more excited about the product.
That’s why it is crucial to include stretch goals into the planning of your product launch, even before you launch the campaign.
What are stretch goals?
Stretch goals are additional monetary goals set by a project creator after the original funding goal is met.
Typically, creators offer more features as stretch goals, but it can be other things too like entrance into early beta test programs, t-shirts, or additional pre-order upgrades. Generally, stretch goals can be anything that makes the product even cooler in the eyes of backers.
Creators can either introduce all stretch goals at once, or you can introduce one, then offer a second one once the first one is hit.
Why are stretch goals important?
As mentioned earlier, campaigns typically see a funding spike at the beginning and end of the campaign and long spans of lulls in pledges in between those time periods. In the chart below from Indiegogo, this is illustrated by the U-shape between the amound of funds raised and the campaign duration. Stretch goals are a great way to keep that energy injected into the campaign.
Choosing and launching attractive stretch goals can keep backers coming back to the campaign to help improve the product features, tell their friends about the campaign and help you raise more money.
Let’s take a look at three examples of stretch goals on killer campaigns.
ONAGOfly
The Indiegogo campaign for ONAGOfly, a smart nano drone, deftly used stretch goals to get to $3 million raised. It was a way to keep interest in the campaign and bring backers to the page time and time again to pre-order upgrades. Some of their stretch goals also had backers share the campaign with their network.
The ONAGOfly team used a mixture of two stretch goal types to keep buzz surrounding their campaign: free upgrades available to all backers and additional pre-order options to “unlock”.
- Free upgrades available to all backers that made the drone “cooler”
- Quick charge fuel stick
- Color choice (black in addition to the original white color)
- Additional pre-order options for accessories to further customize the drone experience
- Carry case
- Pro kit
Screenshot below is taken directly from the campaign page:
XGIMI
Similarly, the Indiegogo campaign for the XGIMI H1 smart projector used a combination of stretch goal types.
- Free upgrades available to all backers that improved the user experience
- Carry cases for all backers
- 3D glasses x 2
- Stand adapter (the product can mount on various items)
- Additional pre-order options for accessories to further customize the use experience
- Floor stand
Screenshots below are taken directly from the campaign page:
Sevenhugs
Creators on the Sevenhugs Smart Remote campaign took a different route when it came to stretch goals. Instead of using crowdfunding to raise funds to put the project through production, their objective for crowdfunding was to form a strong group of early adopters to get direct product feedback. They were able to do this since they were already heavily funded through a VC firm.
Their stretch goal strategy clearly reflected the need for early adopters. The team made sure their margins stayed strong enough for them to offer free feature additions to all backers every step of the way:
- Free upgrades available to all backers that improved the user experience
- Haptic feedback
- Infrared learning
Images below are taken directly from the campaign page:
What are some ideas for stretch goals?
A good stretch goal is one that strikes a balance between satisfying backer interest and the additional risk in terms of shipping and production costs.
Let that one sink in.
You need a BALANCE.
With that in mind, the sky (and your budget) is the limit when it comes to stretch goals.
Here are examples for stretch goals from other campaigns:
- Additional colors or limited edition colors
- Crowdfunding inscription (“early backer”, “Kickstarter”, “Indiegogo”, etc.)
- Special crowdfunding edition
- Additional protection or carry cases
- T-shirt (or other swag) with brand logo
- Entrance into an early beta program
- A discount for all future products or a discount for existing products in the brand store (good for companies with multiple products or looking to launch multiple products)
What’s the best find the best stretch goals for your project?
Leverage your early audience!
Send them surveys, ask them on social media, write to them via email – the more information the better.
Once you have a list of ideas, be sure to check in with your team that any additional production and shipping costs can be offset with additional funding.
A word of warning
While it is crucial to integrate stretch goals into the overall launch strategy, it is also critical to be able to deliver on those promises.
There are many campaigns that have raised a lot of money from stretch goals, but fall short on shipment and delivery. Expanding a project’s scope with additional goals can create more risk for shipping and production costs.
There are projects where these goals leave the creators overwhelmed, over-budget, and behind schedule.
Pro tip: It’s probably not worth it if adding new features or accessories as a stretch goal will jeopardize your entire project.
Ultimately, each campaign and each product is different, and there is no universal strategy for successfully funding a project.
As you’re planning your campaign, be sure to evaluate your project to see how best to roll out stretch goals, when to roll them out and what additional goals to roll out.
Please share this article on Twitter if you liked it – would mean a lot to me!
We’re here to help you crush your crowdfunding campaign and fund your dream. Our team has helped creators successfully launch and raise over $13 million on Kickstarter and Indiegogo. We’re so excited to help you on this journey to launch!
