Etsy + Kiva Zip Workshop: How to Crowdfund your 1st Etsy Startup
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Transcript of Etsy + Kiva Zip Workshop: How to Crowdfund your 1st Etsy Startup
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“So you want to crowdfund your
Etsy shop?” What you need to know about navigating the world of crowdfunding
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CROWDFUNDING IN PLAIN ENGLISHLots of individuals contribute small amounts... they add up to fund a creative project, a business or a cause... facilitated by online, digital platforms
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Crowdfunding can help lower costs of increasing your etsy shop’s profitability by lowering cost of goods, expanding quality/scale/capability
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IF YOU AREa small business in the US
looking to crowdfunding as an alternative source of financing,
there’s good news and there’s bad news.
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USA = the home of crowdfunding: 60% of every $ Crowdfunded
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So many! Just how
do you choose?
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This Webinar.....
“101”4 Different models of crowdfunding
“OMG!”“So many sites...how do I choose the right one for my biz?”
Tips for your Campaign: How Not to Fail
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This Webinar.....
“101”4 Different models of crowdfunding
“OMG!”“So many sites...how do I choose the right one for my biz?”
Tips for your Campaign: How Not to Fail
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REWARDS DONATION
EQUITY (INVESTMENT) CROWDLENDING
4 different models of
crowdfunding
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REWARDS
Contribution > $X, gets you a cool
reward from the startup
DONATION
EQUITY (INVESTMENT) CROWDLENDING
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REWARDS
DONATION
“give and get nothing
in return but feelgood”
EQUITY (INVESTMENT) CROWDLENDING
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REWARDS DONATION
EQUITY (INVESTMENT)
CROWDLENDING
Peer-2-peer lending for low or no
interest
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REWARDS DONATION
EQUITY (INVESTMENT)
crowd earns equity, debt, or a revenue
share for their contributions (pending JOBS act)
CROWDLENDING
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Over the years, models have overlapped.
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REWARDS DONATION
EQUITY (INVESTMENT) CROWDLENDING
{Note: sizes of the circles roughly indicate current relative site traffic/activity in 2013 according to Alexa}
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REWARDS DONATION
EQUITY (INVESTMENT)
CROWDLENDING
Note:Sites selected for discussion are those with highest traffic in each category according to Alexa (Q1 2013), Kiva traffic from multiple Kiva domains incl Kiva.org and Kiva.org
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More and more crowd-funding variants
every year...
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This Webinar.....
“101”4 Different models of crowdfunding
“OMG!”“So many sites...how do I choose the right one for my biz?”
Tips for your Campaign: How Not to Fail
![Page 19: Etsy + Kiva Zip Workshop: How to Crowdfund your 1st Etsy Startup](https://reader034.fdocuments.in/reader034/viewer/2022042518/5402efa28d7f72bb4a8b476e/html5/thumbnails/19.jpg)
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Q1: What kind of project/ biz is it?
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Q1: What kind of project/ biz is it?
non-profit, good cause
Innovative “sexy” idea with clear revenue
Innovative “sexy” idea -
uncertain success
Not “sexy” but clear revenue
No plan yet, just bet on
ME
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Q1: What kind of project/ biz is it?
non-profit, good cause
Innovative “sexy” idea with clear revenue
Innovative “sexy” idea -
uncertain success
Not “sexy” but clear revenue
No plan yet, just bet on
ME
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Q1: What kind of project/ biz is it?
non-profit, good cause
Innovative “sexy” idea with clear need, end,
and revenue
Innovative “sexy” idea -
uncertain rev$, date of completion
Not “sexy” but clear rev$, just needs
capital
No plan yet, just bet on
ME!
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Q1: What kind of project/ biz is it?
non-profit, good cause
Innovative “sexy” idea with clear need, end,
and revenue
Innovative “sexy” idea -
uncertain rev$, date of completion
Not “sexy” but clear rev$, just needs
capital
No plan yet, just bet on
ME!
Q2:Belongs to these 13 categories:
Art, Comics, Dance, Design, Fashion, Film, Food, Games,
Music, Photography, Publishing, Technology, or Theatre?
Y
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Q1: What kind of project/ biz is it?
non-profit, good cause
Innovative “sexy” idea with clear need, end,
and revenue
Innovative “sexy” idea -
uncertain rev$, date of completion
Not “sexy” but clear rev$, just needs
capital
No plan yet, just bet on
ME!
Q2:Belongs to these 13 categories:
Art, Comics, Dance, Design, Fashion, Film, Food, Games,
Music, Photography, Publishing, Technology, or Theatre? N
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Q1: What kind of project/ biz is it?
non-profit, good cause
Innovative “sexy” idea with clear need, end,
and revenue
Innovative “sexy” idea -
uncertain rev$, date of completion
Not “sexy” but clear rev$, just needs
capital
No plan yet, just bet on
ME!
Q2:Belongs to these 13 categories:
Art, Comics, Dance, Design, Fashion, Film, Food, Games,
Music, Photography, Publishing, Technology, or Theatre?
YN
Q3:Definitely requires loan
$5,000-35,000 AND your Credit Score > 600
Y
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Q1: What kind of project/ biz is it?
non-profit, good cause
Innovative “sexy” idea with clear need, end,
and revenue
Innovative “sexy” idea -
uncertain rev$, date of completion
Not “sexy” but clear rev$, just needs
capital
No plan yet, just bet on
ME!
Q2:Belongs to these 13 categories:
Art, Comics, Dance, Design, Fashion, Film, Food, Games,
Music, Photography, Publishing, Technology, or Theatre?
YN
Q3:Definitely requires loan
$5,000-35,000 AND your Credit Score > 600
YN
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Q1: What kind of project/ biz is it?
non-profit, good cause
Innovative “sexy” idea with clear need, end,
and revenue
Innovative “sexy” idea -
uncertain rev$, date of completion
Not “sexy” but clear rev$, just needs
capital
No plan yet, just bet on
ME!
Q2:Belongs to these 13 categories:
Art, Comics, Dance, Design, Fashion, Film, Food, Games,
Music, Photography, Publishing, Technology, or Theatre?
YN
Q3:Definitely requires loan
$5,000-35,000 AND your Credit Score > 600
YN
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WHAT CONTRIBUTORS RECEIVE
DONATION + REWARD(pre-selling goods,
pre-determined rewards)
DONATION + REWARD(pre-selling goods,
pre-determined rewards)
DONATION + REWARD(pre-selling goods,
pre-determined rewards)
INVESTMENT (equity, share of
revenue)
INVESTMENT (equity, share of
revenue)
NON-PROFIT (purely emotional/
feel-good)
NON-PROFIT (purely emotional/
feel-good)
Main playersKickstarter Indiegogo rockethub Upstart Prosper Kiva Zip Causes.com
Size / Volume(ave $ fundraising p/day)
$1.04mil n/a n/a n/a $330K$500k (all Kiva)$24k (Zip only) n/a
Failure to meet Goal %
56%90% on projects > $1000
N/a non goal-oriented site
Varies - est 50% 0.5% non goal-
oriented site
Fundraising limits (Whether donation/Loan)
No limit No limit No limitVaries: $100 up to$20,000 for experienced
depends on credit score, $35,000 max
1st loan $5000 No limit
Platform Cost ($paid directly to platform)
5%4% if goal met 9% if goal not met
4% if goal met 8% if goal not met
3%Fees vary by Prosper rating 0.5%-5%
FREENo interestNo commission
FREENo interestNo commission
Other expenses (not paid to site but incurred based on platform’s model)
Video + Reward + 3-5% credit card processing
Video + Reward + 3-5% credit card processing
Video + Reward + 4% credit card processing
(only late fees)
Interest rate varies: 9%-35% APR
FREEPaypal-Kiva transactions free
4.75% credit card processing
Financial Criteria / eligibility
No No No min FICO score > 640
min credit score > 600
Character endorsement No
Type of business’ restrictions
Art, comics, dance, design, fashion, film, food, video, games, photo, publishing, tech, theatre
No
Not only arts, but largest crowd-funder for Science and Academic projects
College Grads only No No
GuideStar-verified and active 501(c)(3) nonprofits
Quick overview of numbers (size, fees, costs, limits, etc){note: best avail numbers at Mar 2013, please verify for yourself}
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“So now I’ve chosen the most suitable crowdfunding
site or sites for myself”...
What’s Next?
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Next, Rise Abovethe Noise
of all crowdfunding campaigns fail.71.3%
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This Webinar.....
“101”4 Different models of crowdfunding
“OMG!”“So many sites...how do I choose the right one for my biz?”
Tips for your Campaign: How Not to Fail
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Don’t forget to include the crowd-funding platform success and/or failure fees, any credit card fees (usually 2-3%), all reward costs and reward delivery costs.
BUDGET
Find rewards that are exclusive but not costly - name an ice cream flavor after donors who give >$200, free farm tours, studio tours or concert passes, collectables, etc.COOLrewards
CRAFTyour story w/TLC
BUDGET*BUDGET
Watch videos, look at photos or read stories that do well. Learn. Write your own story. Improve it. Run it by people who don’t know you well. Improve it again.
HEART Marketing with no marketing budget is always about social media heart & hustle. Ask friends to share your campaign. Ask influentials to retweet you/email intro you to others. The more people you ask, the luckier you get in social media.
&HUSTLE
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ETSY KIVA
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Q1: What kind of project/ biz is it?
non-profit, good cause
Innovative “sexy” idea with clear need, end,
and revenue
Innovative “sexy” idea -
uncertain rev$, date of completion
Not “sexy” but clear rev$, just needs
capital
No plan yet, just bet on
ME!
Q3:Definitely requires loan
$5,000-35,000 AND your Credit Score > 600
YN
Your best option is Kiva Zip if...
....If you’re an everyday small business or startup with a clear business plan
AND
.....you could use a 0% interest zero fee small loan <$5000 to help your business start/ grow more profitably....
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0% interest, zero fee crowdfunded loans <$5000
99.5% of loans posted are FULLY funded.
Any kind of small business: Cooks, farmers, craftmakers, coffeeshops, home contractors,
beauticians, landscapers, cleaners, etc.
“Just everyday small businesses funded directly by ordinary people’s
generosity - facilitated directly online. No one makes money but you.”
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&• “Etsy+kivazip” progam • Getting Kivaʼs ʻcrowdʼ of lenders to support Etsy sellers become self-sustaining• Getting the Etsy community teams to publicly endorse great sellers for interest-free loans• Because they are ʻvouched forʼ qualify for a <$5000 zero interest zero fee crowdfunded loan • funded by a base of 1.3mil registered Kiva lenders from around the world • So far 3 Etsy sellers on Kiva Zip, more on the way
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$3,000 loan to hire a stay-at-home mom to help with yarn-making, hire pro photographer
XimenelleYarn Shop
$5,000 loan to expand range to bridal accessories + marketing outreach
PRINCESS PUDDLE DUCK
hairbows
$5000 loan for cold vending cart & equipment for festivals
HEALCREST URBAN FARM
Herbal Teas
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What a loan profile looks like (Ximenelle example)
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What an endorsement looks like (Ximenelle example)
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Questions?- about crowdfunding options in general
- about Kiva Zip specifically
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Support a local small business with a $25 loanZip.Kiva.org/loans
Found a trustee within your committee? Apply for a starter loan <[email protected]
(coming soon)Etsypluskivazip web hub
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Appendix: Additional web resources on crowd-funding
(recommended)
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1) Broad search: what different crowd-funding sites exist?
2) Compare & Select: Of the larger sites serving my type of biz, which one(s) suit my needs (size, speed)& resources best
3)Free Tips: How to activate the crowd and minimize wasting time and money?
http://www.rockethub.com/educationRockethub Success School