Post on 22-Jul-2015
by Keith Boswell, Chief Strategist, Percep8nt
Crowdfunding 101 Best Prac*ces & 10 Tips to Succeed
The crowd’s here & they’re not leaving.
I’ve worked in & with: § Web design & so=ware integra8on § Display adver8sing & tracking § Search & email marke8ng § Social media marke8ng § ACribu8on & analy8cs § Crowdfunding (2 campaigns in development)
My Background
Kent ISD
My Background
20 years in Digital Marke:ng & Opera:ons: § Desktop publisher § Founder of a web design firm § Project manager § Account manager § Internet Strategist § COO of Search Marke8ng Agency
(acquired)
§ Director Account Services § Director of Digital Marke8ng & Social Media Strategy
(for a $48 billion dollar non-‐profit)
§ Author & Co-‐founder of Publishing Company § and now…
My Background
I’m a shared resource Chief Digital Officer
My Background
I fix broken digital businesses & improve successful ones.
What is Crowdfunding?
crowd·∙fund·∙ing /ˈkroudˌfəndiNG/
noun noun: crowdfunding; noun: crowd-‐funding the prac8ce of funding a project or venture by raising many small amounts of money from a large number of people, typically via the Internet.
Why Is It Important?
Why Is It Important?
Words of Wisdom
If I do my job today, my hope is you won’t end up…
Words of Wisdom
making .0000486% of your goal.
Some Film with Actresses Kickstarter Page
This aspiring writer’s dreams… deflated by “The Crowd”.
Words of Wisdom
Four Types of Crowdfunding
§ Customers & “Rewards” § Equity § Peer to Peer loans § Dona8ons § Today’s focus Reward & DonaQon campaigns
Types of Crowdfunding
Crowdfunding Customers § You get the money raised if you reach your goal… § Customers pre-‐pay for your product before it comes to market
§ Companies using it for launching, marke8ng, tes8ng product feasibility, and more
§ Funding windows typically from 7 to 45 days § Inherent risk you won’t deliver
Types of Crowdfunding Crowd-‐Funding Equity § Michigan one of the first states w/The MILE Act
— Michigan Invests Locally Exemp8on — Sweet spot is small, local businesses
§ Can raise up to $11k annually from investors with less than $1.5 million in assets
§ Funds must stay in Michigan and create jobs here § Plajorms are available to help with investor screening, inves8ng, etc. (RECOMMENDED)
§ Contact me if you need more info, I can help connect you to the right resources
Types of Crowdfunding
§ Peer to Peer Loans — GoFundMe – personal funding campaigns — Kiva -‐ microinvestment
§ DonaQons — Online giving for non-‐profits
§ American Heart Associa8on Jump-‐a-‐thon § Girl Scout Cookie’s § ALS Ice Bucket Challenge
Stories Sell the Crowd
§ Focus & refine your story — Some campaigns have been in development
for a year or longer — Seek feedback & demonstrate you’ve listened — Study similar campaigns with vigor
§ Your ask should inspire & be realisQc § A compelling video is REQUIRED
— Hit highpoints by 30 seconds — 3 to 5 minutes is ideal — Show your personality and BE HONEST! — Experts and outsiders sharing opinions help
validate for the crowd
AcQvate Your Network for Success
§ Preview with them – work the circle out by 8me — micro, small, large, larger, etc.
§ Take their feedback § Can you get an expert endorsement? § Give your audience something worth sharing.
— What does it say about them? § Prepare a markeQng blitz
— PR, shareable bits, news & influencers § Ask them to support & spread at launch § Keep them enthused & communicate o=en
— Weekly updates at minimum during campaign — Collect email addresses separately
Gebng Coverage
§ Research the plajorms you’re considering § Who covered previous campaigns?
— Blogs § Iden8fy the influencers
— Who do you read? — Who do your poten8al customers trust?
— Forums § Can be most acQve community § Be an ambassador and observer pre-‐funding ask
— Google Image Search — Events — Trade Magazines
§ Make the pitch personal
Simple Way to Research Sites to Pitch
When it works…
Flow Beehive for Honey Collec8on
§ Funded $70k Goal in 8 minutes
§ End of day one $3.2 million
§ Currently just under $5.9 million
§ Days remaining 24
When it works…
Transparency Rules
§ Honesty is everything with the Crowd § Detail the Risks & Challenges
— Challenges post-‐funding are real and happen everyday
§ Everything said lives on § Conversa8ons will spread § Be prepared to engage
Timing
§ Layout project 8ming as far out as you can § Include con8ngency 8me up front § If things change, share it immediately § Prepare for fulfillment
Rewards & Perks
§ Tiers of support — Giving “Thank you’s” for limited support — Custom gi=s for high-‐end backers — Offer as many 8ers that make sense for you — Think of NPR style contribu8on levels
Support Levels
§ Almost all have a $1 – 10 “Thank You” pledge § Accelerated Delivery or Early Bird Pricing
— First backers pay less (limited number) — First backers get first deliveries
§ Combo’s or Mul8ples § Behind the scenes tours
Social Currency aka Bragging Rights
Web & Email
§ Have a presence before you start — Look professional and be ready to update
§ Build an email list as soon as possible — Work with a provider like MailChimp or Constant Contact
— Update when needed, you must engage
Social Networks
§ Facebook is a must at minimum § See the Tim Ferriss blog post at the end on how to value your network
§ YouTube & Video updates § Specialized networks like Instagram, Vine or others depending on the product
§ Give your crowd something worth sharing § Make sharing easy
Updates & Engagement
§ Let the crowd know things as you do § Ask the crowd to spread your word § Behind the scenes material can go a long way § When you update, update everywhere § Send reminders § If you add new goals, support levels, rewards, etc. do another round of marke8ng to blogs, forums and any other trade related sources
Project I backed that funded Day One
The Melty Misfits “Garbage Pail Kid” Parody Cards
Reward Project Funded on Day One
Giving Goes Social
§ ALS Ice Bucket Challenge — Over $115 Million raised to date — Tripled their research budget — Hard to replicate (right as FB video launched) — Drew cri8cism for how it skewed “giving”
§ Social is the layer to amplify any org’s message § There has to be something in it for people to share — What does it say about them or their POV? — How does your story fit theirs?
Not Funded, Keep Working!
§ Keep your audience engaged § Use your email list to solicit feedback
— What could have been beCer? — What are they looking for?
§ Dust off and come back, improvement and persistence will pay off
§ The 3rd 8me’s a charm…
The Coolest Cooler
The Coolest Cooler – Original Kickstarter Page
Funded, Now What?
§ Prepare for the bumps, there will be a few § Keep the crowd informed as milestones met § Solicit feedback from backers § Deliver an excep8onal product or service § Ask for honest reviews, never a good review § You have a track record now, what’s next?
The Coolest Cooler
10 Tips for Crowdfunding Success
1. Your story is cri8cal 2. Seek feedback early 3. Collect email addresses 4. Put thought and value into your Rewards/Perks 5. Transparency rules 6. Be prepared & realis8c, do your homework 7. Your video can make or break you 8. AcQvate your network 9. Have marke8ng & PR ready to go 10. Communicate regularly & keep audience engaged
AddiQonal Resources
§ Crowdfunding.com (provided by GoFundMe) Top 10 Plajorm by traffic, Alexa rank & funds
§ Tim Ferriss’ Blog Post (including templates) Raising 100k in 10 days
§ MILE Act overview Downloadable PDF
§ Top 10 Crowdfunding Sites Good background, overview & fee info
Q & A
QuesQons today? This deck will be posted online at: hCp://www.slideshare.net/keithboswell QuesQons later? § Web: hCp://percep8nt.com § My eBooks: hCp://www.master-‐succeed.com § Email: keith@percep8nt.com § Follow me on TwiCer: @keithboswell