Crowdfunding has grown significantly in recent years and provides an alternative source of funding for entrepreneurs known as "first money". There are different models of crowdfunding including rewards-based crowdfunding exemplified by Kickstarter as well as emerging equity crowdfunding. Crafting a successful crowdfunding campaign requires focusing on the passions and motivations of potential donors through compelling visuals, storytelling, and community engagement on social media. Metrics should be used to measure and improve campaign performance over time.
81. Lessons from Ethan Mollick’s “The Dynamics of Crowdfunding: Determinants of Success and Failure”
82. 3 Why’s:
three main reasons why
people unconnected to a
project or business would
support it:
1. They connect to the greater
purpose of the campaign
2. They connect to a physical
aspect of the campaign like the
rewards
3. They connect to the creative
display of the campaign’s
presentation
What Is Crowdfunding And How Does It Benefit The Economy - Forbes
http://www.forbes.com/sites/tanyaprive/2012/11/27/what-is-crowdfunding-and-how-does-it-benefit-the-economy
83. • Passion
The Real
(Crowdfunding)
Why’s
–
–
–
–
For the technology
For the industry
For the cause
For the product
• Affinity
– For the Entrepreneur
– For the region, industry etc
• Connection
• Every reason BUT R.O.I. …
84. WYNTK
(what you need to know)
Crowdfunding is about …
emotional ROI.
Not financial ROI
88. “Consumers who want products before they are
developed”
Pre-orders
Early adopters
Supporters
http://trendwatching.com/trends/infographics/presumers/
92. WYNTK
(what you need to know)
1. Crowdfunding = New “1st Money” for ventures
($10k - $50k average– but wild exceptions)
2. Equity Crowdfunding is Still Far away
3. Rewards based Model IS Crowdfunding today
4. All or Nothing Crowdfunding – Standard
5. Perks and Rewards: Pre-order Crowdfunding
6. Social Media & Content Intensive
www.propelarizona.com
94. • The iPhone-friendly Pebble watch earned $7.6
million more than its $100,000 goal.
• And the Galileo iPhone platform closed its
Kickstarter campaign at $702,000, far
surpassing its $100,000 goal.
95. • Ouya raised $2 million in one day for a new Android gaming
console (it’s raised more than $5 million to date),
• the Nifty MiniDrive, external memory for Apple MacBooks.
The tiny storage company is more than 2,000% above its
$11,000 goal with 15 days left in the campaign.
104. Successful campaigns took an average
11 days preparing for their launch.
http://blog.indiegogo.com/2013/01/12-insights-for-2012.html
105. Campaigns ran an average 49 days in
2012, as opposed to 60 in 2011.
Successful campaigns fundraised for
39 days.
106. Crowdfunding Myths & Mistakes
•
•
•
•
•
•
•
•
Myth #1: If You Build It, They Will Come
Myth #2: Cash is Free
Making it about you
Unrealistic Expectations
Lack of clarity
No call to action
Expecting to be found: (No Marketing)
Ignoring Small Donations/Donors
http://kickstartershq.com/articles/5-project-crushing-kickstarter-mistakes-how-to-avoid-them
http://www.crowdsourcing.org/document/3-big-crowdfunding-myths-via-funderhut/23804
108. The new 4 P’s of
Crowdfunding ..
the
2.
WHO are they?
What motivates them?
Interests, Values …
the
1.
focus on “them” –
not your company
the
3.
the
4.
You are pitching to “them”
$$ Value is a negative driver !
It’s a daily/hourly effort …
TELL A STORY !!
UNIQUE
SOCIAL MEDIA
WHY is more important than $$
It’s about THEM
It’s a conversation …
VIDEO(s) & VISUAL(s)
EXCLUSIVE
UPDATES, BLOGS, NEWS
Tell the story in small ‘chapters’
And what is important to “Them”
Provide Value, and Talking Points
VIDEO(s) & VISUAL(s)
FIRST
RE-POST, TWEETable
And even smaller “sound bites”
Make sure it is …
It’s about … for their network
Give them a Story they
can tell to others.
BUZZWORTHY
VALIDATION & EVIDENCE
www.propelarizona.com
111. WYNTK
(what you need to know)
1.
2.
3.
4.
5.
Crowdfunding takes work, new skills.
It takes a strategy, and preparation.
The rules are different.
You can’t just post and run …
It’s a public success or failure – that “stays on
your resume”
www.propelarizona.com
113. Title & Short Description
• (repeatable & compelling)
Long Description (“The Pitch”)
• Make it a story … about “them”
Visuals: Video, Photos, Images
Team, Deliverables, Details
Perks & rewards
Funding Goals: Amount and Timeframe
Updates & SOCIAL MEDIA CAMPAIGN
• Repeatable Messages
• Daily “routine”
• Traditional marketing too
115. First: Who What Why When …
• The 3 Who’s:
– Who are the donors? (affinity & passion)
– Who is benefits? (the market)
– Who are you?
• The 3 Why’s
– Why would your donors care?
– Why does the market care?
– Why are you the right team to do it?
116. First: Who What Why When …
• What is your project & goal?
– Understandable & Simple
– Compelling & Intriguing
– Repeatable & Memorable
• How and When
– How will you achieve your goal? Realistic?
– When, after funding? When will I get my perks?
117. Other Tips
•
•
•
•
•
•
Tell a story
Make it about them
The History of the idea is intriguing
What is the Impact? – why is this important?
Try a FAQ
Call to action – get them involved!
119. Crafting your Pitch
Title & Short Description
•(repeatable & compelling)
Long Description (“The Pitch”)
•Make it a story … about “them”
Visuals: Video, Photos, Images
Team, Deliverables, Details
Perks & rewards
Funding Goals: Amount and Timeframe
Updates & SOCIAL MEDIA CAMPAIGN
•Repeatable Messages
•Daily “routine”
•Traditional marketing too
The 3 Who’s:
Who are the donors? (affinity & passion)
Who is benefits? (the market)
Who are you?
The 3 Why’s
Why would your donors care?
Why does the market care?
Why are you the right team to do it?
What is your project & goal?
Tell a story
Make it about them
The History of the idea is intriguing
What is the Impact?
Why is this important?
Try a FAQ
Call to action – get them involved!
Understandable & Simple
Compelling & Intriguing
Repeatable & Memorable
How and When
How will you achieve your goal?
Realistic?
When, after funding?
When will I get my perks?
120.
121. Pitch Notes - 1
•
•
Who (donors, market)
“Why” – the story
•
•
Impact (on the market)
Impact (on the donors)
122. Pitch Notes - 2
•
•
Story, and History …
FAQ
•
•
Perk Ideas (what’s important to donors)
Calls to Action
124. The Importance of Visual Media
• 64% of successful campaigns in had pitch videos.
• Campaigns with videos under 5 minutes were 25% more likely to reach
their goal than those with videos that were longer.
• Average campaign video length for campaigns was 3 min, 27 seconds.
Campaigns that reach their goal are 16 seconds shorter.
• On average, successful campaigns uploaded 6 media to their gallery.
•
http://blog.indiegogo.com/2013/01/12-insights-for-2012.html
132. • $25 perk is the single most claimed perk,
representing nearly 25% of all perks that are
selected.
• While the $25 dollar perk is only responsible
for raising 11% of total funds.
133. • $100 perks raise more money than any other
perk price and make up nearly 30% of total
funds. A $100 perk combined with the next
three perk price points: $50, $500, and $1000
makes up about 70% of total money raised by
perks
147. Discussion
• How much should we raise?
– Have you raised money before? Return?
– Do you/did you work at a highly visible position?
– *** Your social network? Large? Followers?
– Idea - big market? How unique?
– How much (marketing) work will you do?
148. HOW to Crowdfund?
PUSH - Running the campaign
•
•
•
•
Social Media
Comments & Updates
Networking
Personal Pitches
151. Social Engagement
– Transparency & Trust
– Social Proof & Viral FX
– Engagement & “The Fundamentals”
– Twitter
– Facebook
– Blogging
152. most successful projects receive about
25-40% of their revenue from their
first, second and third degree of
connections.
This could include friends, family, work acquaintances, or
anyone that the owner is connected to.
•
http://www.forbes.com/sites/tanyaprive/2012/11/27/what-is-crowdfunding-and-how-does-it-benefit-the-economy/
153. 1. Create: (of course)
- A Facebook Account
- A Twitter Account
(for your campaign)
154. 2. Tweet & Post
–Frequently
–Uniquely
–Personally
155. 3. Post Updates & Blog
•About your progress
•About the subject
•About the industry
•About the People
156. 4. Go 1-1
•Reply to comments
•Retweet/Repost
Your fans and donors are your most
powerful advocates!
157. 5. Target, Measure & Adjust
• Different Messages for different
groups
• Google, Hootsuite, others
• Learn and Adjust focus
160. the importance of google analytics to track
and improve performance
• + perks from fivvr
•
•
http://www.perlsteinlab.com/blog/anatomy-of-a-crowdfund-week-3-slow-andsteady
161. Campaign Checkist
Social Media
What to Communicate:
Create a schedule 2-5x / week
Use an automated tool
Eg Hootsuite
Post interesting info –
Not just pleas for money
Not just updates
Vary your targets
Call to action 1/3-1/2 time
1.
2.
3.
4.
5.
Your Progress
Successes, Evidence of success
Ammunition for your supporters
Industry Info, Factoids
People Info
Use analytics and other metrics
Traditional Marketing
Pitch Events
Press Releases
Demos
Testamonials
Use an automated tool
Plan, Schedule & Update
Your Social Network is a Force
Multiplier – but you have to give
them help.