How GoFundMe Works

GoFundMe: How It Works - A Detailed Breakdown

Key Concepts:

• Crowdfunding
• Charitable Crowdfunding
• GoFundMe Fees (Processing Fee)
• Fundraising Goal
• Campaign Story
• Social Proof
• GoFundMe Algorithm
• Recurring Donations
• AI Technology for Story Writing
• Crowdfunding Street Team
• Engineered Launch

1. Introduction to GoFundMe

• GoFundMe is a crowdfunding platform used to raise money from strangers and connections for specific causes.
• Causes can include emergencies, disasters, medical bills, memorial funds, travel costs, education, or even business-related needs (charitable crowdfunding).
• The video aims to provide a clear understanding of the platform's inner workings and considerations before launching a campaign.

2. Setting Up a GoFundMe Campaign

• Category Selection: Determine the appropriate category for your cause on GoFundMe. Browse the platform to see similar projects.
• Essential Assets:
  • Campaign Story: A compelling narrative explaining the cause.
  • Photo/Video: Visual representation of the cause.
  • Fundraising Goal: The target amount to be raised. GoFundMe may adjust this goal based on perceived potential.
  • Launch Date: A planned date to go live with the campaign.

3. How GoFundMe Works: Fees and Algorithm

• Fees: GoFundMe charges a processing fee of 2.9% plus 30 cents per transaction (subject to change; check the GoFundMe website for the most up-to-date information).
• Funding Meter: As donations come in, the funding meter increases, creating excitement and encouraging further donations.
• GoFundMe Algorithm: Promoting and marketing the campaign increases its visibility on the platform and triggers the GoFundMe algorithm, leading to greater exposure.
• Tips: GoFundMe asks donors for a tip to support its operations, at no cost to the campaign organizer.
• Recurring Donations: Donors have the option to make their donations recurring.

4. The Importance of a Compelling Campaign Story

• A good story attracts donations from strangers and encourages sharing.
• It can also attract attention from local and national media outlets, leading to news coverage.
• Example: A homeless man returning money leading to a six-figure GoFundMe campaign.
• AI technology is now being used to help write campaign stories.

5. Social Proof and Credibility

• Social Proof: It's crucial to "prime the pump" by securing initial donations from friends, family, or local groups. This demonstrates credibility to strangers visiting the campaign.
• Raising Money on Behalf of Someone Else: Campaigns are more likely to be successful if someone else raises money on your behalf, as it provides instant credibility.
• Team Fundraising: Adding teammates to the campaign can expand reach and provide additional social proof.

6. Recap: Steps to Launching a Successful GoFundMe Campaign

1. Decide What You're Raising Money For: Clearly define the cause.
2. Decide on Your Goal: Set a realistic fundraising target.
3. Assemble the Assets: Gather photos, videos, and craft a compelling story.
4. Assemble a Marketing Plan: Determine who will be raising money (yourself or someone else), and create a "crowdfunding street team."
5. Engineer the Launch for Success: Plan the launch in advance with a detailed marketing calendar, including email marketing, social media posting, and PR outreach.

7. Conclusion

• The video provides a comprehensive overview of how GoFundMe works, from setting up a campaign to marketing it effectively.
• Key takeaways include the importance of a compelling story, social proof, and a well-planned launch strategy.
• The speaker promotes his free course and "GoFundMe Cash Machine" system for further assistance.