How to launch a crowd funded product

How to Launch a Product on a Crowdfunding Platform | Planningness 2014 | Jess Seilheimer | @jaeselle

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Author: Jess Seilheimer@Jaeselle

Jess Seilheimer | @jaeselle | Planningness 2014

How to launch a Crowdfunded Product

How to Launch a Product on a Crowdfunding Platform | Planningness 2014 | Jess Seilheimer | @jaeselle 2222

Hello.

Jess Seilheimer | @jaeselleChief Strategy Officer; MWWAdvisor; Birdi (former lead Strategy & Marketing)


More than just "merchandising” a cool idea -using the community to validate or commercialize a product


Same strategic approach to product dev, different customer mindset

Identify customer problems

Uncover an unmet need

Ideate around solving that need

Differentiate how your product meets the need (vs. competitors)

Emotionally and rationally driven

Longer consideration/buying cycle

Commercial product

Connecting with your community and audience

Emotionally driven

Being first, urgency behind a 30-day movement

PRIDE: Showing/sharing support

Crowdfunded product


Empower people to fund

what matters to them

We all want to be part of something meaningful


How to break through all the noise (and vaporware)?

You need a well-defined strategy and marketing/pr plan to achieve a desired level of awareness and conversion of campaign backers to financially support your product (so you can bring it to market).


GREAT marketing execution will help your campaign

1. Provides real-time validation, feedback (free market research) from your target customers

2. Gain earned media for (and FROM) your target customers & increase your reach

3. Pre-sell a product

4. Attract major investors

5. Attract major retailers and distributors

Poor/no marketing will kill your campaign*

1. 60% of projects fail

2. Average raise is only 10K

*Due to no pre-launch awareness or marketing

Indiegogo Field Guide: landing.indiegogo.com/iggfieldguide/


CROWDFUNDING TRENDS CROWDFUNDING 101

MARKETING PLAYBOOKCASE STUDY: BIRDI

BREAKOUTS


Crowdfunding landscape

Rewards-based Equity-based (ie: “the business case” for your social networks)

• Caps exist for companies (e.g., can only raise up to $1 million in 12 months)

• investors (e.g., majority will be limited to five percent of their income or net worth),


TRENDS

RISE OF THE DIY ENTREPRENEUR

USING YOUR NETWORK FOR INITIAL VALIDATION

NEW PLATFORMS FOR NICHE INDUSTRIES

SYNDICATE EQUITY FUNDS

DO IT ALL: COMMERCIAL OPPS SERVICES

1

2

3

4

5


ARTISTS FILM MAKERS TECHNOLOGISTS

Top funded industries


Maturing point of views

Praise the utility and future of crowd

funding Expect a sea of fraud

Crowdsourcing is quickly evolving into an industry itself. In fact, crowdfunding is predicted to create at least 270,000 jobs and inject $65 billion into the economy by 2014’s end.

270,000+ jobs

65m into the economy

http://www.entrepreneur.com/article/230912


Successful campaigns

MISFIT SHINEGoal: 100KRaised: $846,675

PEBBLE WATCHGoal: 100KRaised: $10,266,845

SCANADUGoal: 100KRaised: $1,662,187

VERONICA MARS MOVIEGoal: 2MRaised: $5,702,153

CANARYGoal: 100KRaised: $1,961,663

THE MICROGoal: 50KRaised: $3,401,361


Influential people to follow

Slava Rubin@gogoslava

Founder, Indiegogo

Perry Chen@perrychen

Founder, Kickstarter

Kate Drane @Katedrane

Hardware lead, Indiegogo

Clay Hebert@clayhebert

crowdfundinghacks.com/

#Crowdfundinghttp://venturebeat.com/2014/01/22/top-30-crowdfunding-thought-leaders/

https://twitter.com/gogoSlava

https://twitter.com/perrychen

https://twitter.com/KateDrane

https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=1&cad=rja&uact=8&ved=0CB4QFjAA&url=https://twitter.com/clayhebert&ei=mqUQVLqIE8HgiwLOtoHQCQ&usg=AFQjCNH9UqOYUKND8qIBtwW8WiqLtxkWuw&bvm=bv.74894050,d.cGE

https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=1&cad=rja&uact=8&ved=0CB4QFjAA&url=https://twitter.com/clayhebert&ei=mqUQVLqIE8HgiwLOtoHQCQ&usg=AFQjCNH9UqOYUKND8qIBtwW8WiqLtxkWuw&bvm=bv.74894050,d.cGE

http://crowdfundinghacks.com/

http://venturebeat.com/2014/01/22/top-30-crowdfunding-thought-leaders/

http://venturebeat.com/2014/01/22/top-30-crowdfunding-thought-leaders/




BREAKOUTS


Build out your team

Campaigns with a team raise 339% more than campaigns that run solo

Indiegogo lab: http://slidesha.re/1uwj2wu

http://slidesha.re/1uwj2wu


Higher Goal ≠ More Money

People want to give to

succe$$ful projects

Indiegogo Field Guide: landing.indiegogo.com/iggfieldguide/ Indiegogo lab: http://slidesha.re/1uwj2wu

87% of campaigns that hit their goal exceed it.



30-45 days. TOPSIndiegogo lab: http://slidesha.re/1uwj2wu



Campaigns with a pitch video raise 370% more compared to ones without.

1:27Indiegogo lab: http://slidesha.re/1uwj2wu





BREAKOUTS


Successful marketing = successful crowdfunding


Crowdfunding playbook

STRATEGY/PLANNING

customer, marketing platform

CREATE/BUILDiterative, refine

as needed

LAUNCH become

discoverable, sharable and memorable

MEASURE what’s working/

what’s not (4-5%

conversion rate)


Research // plan

RESEARCH/PLAN

customer, marketing platform


as needed

LAUNCH become



what’s not (4-5%

conversion rate)

1. Start 6 months in advance of launch2. Research similar crowdfunding projects3. Who is your target audience? (customers, VCs, investors)4. Perks & pricing (discounts!)5. Hire creative team (save up!)6. Determine budget for creative assets, social media & PR7. Create a marketing mix/plan of how you will drive

awareness and conversion of your campaign efforts

Social marketing is not free! You need budget:1. build an audience2. drive engagement and sharing

through multiple types of tactics and content marketing

(I could write a book on the approach to social marketing but will spare you)


Research // plan // MARKETING PRE LAUNCH

Create an inner circleFriends, family, colleagues, past supporters (plan to raise 30% of funds from this group)

**Build your social media presence**identify followers & influencers, create assets, share relevant content, create thought leadership, post teasers!


Create // Build

RESEARCH/PLAN

customer need


as needed

LAUNCH become



what’s not (4-5%

conversion rate)

Creative: • Create 2 videos with 2 endings

• Problem you are solving- what product is- what it does features/benefits and why it’s important to the end user. No longer than 1:30-2 minutes.

• Craft your messaging/RTBs• Layout real estate on page• Visual is better! Infographics win• Show your product• The more you tell, the more you sellSocial: • create assets & editorial calendar

(can’t stress this enough to plan in advance)

Press/Media Kit:• Craft (flexible) press release & media

kit. Short & sweet, include video and visuals. (Yes you still l need a press release to keep your messaging tight. This is a must.

Perks: motivate funding for• Passion• Pride• Participation/sharableOn Average, campaigns with perks raise 143% more than campaigns without perks


Create // Build // PERKS

*Must do* Do the math on perk pricing

(logistical time counts)

Know how you’ll fulfill at 10 and 10,000 units

Research international shipping

What are Perks?Good or product• A physical object• Swag• Your product

Experience• Event• Recognition• Volunteer• Participation

Digital Good• A song• Subscription to newsletter• Exclusive insight into project’s progress

In-kind• Dinner with a celebrity or influential individual• Special skill• Access to exclusive places

Make contributors feel valued• Show off participation• T-shirts• SWAG• Creative involvement





Launch

RESEARCH/PLAN

customer need


as needed

LAUNCH become



what’s not (4-5%

conversion rate)

Marketing and PromotionEmail• Email brings in 20% more funding than any

other source

Social Media• Social marketing is paramount. Strategy:

build following and then convert• 25% of a campaign’s funds raised should

come from social media

Press/Bloggers• Identify influential journalist beats, interests and

craft personalized pitches (no mass pitches!) for relevant websites, blogs

Mid-campaign dealsOffer specials and 1-off memorable campaigns

Indiegogo Page UpdatesCampaigns with updates raise 286% more funds


Measure

RESEARCH/PLAN

customer need


as needed

LAUNCH become



what’s not (4-5%

conversion rate)

Finishing Strong• Update frequently until deadline

After deadline• Thank your contributors• Follow up about fulfillment• Continue to use your campaign for

marketing• Don’t stop communicating via social

Analytics• Measure against KPIs and benchmarks

Cost per acquisition analysis• Thank your contributors• Follow up about fulfillment• Continue to use your campaign for

marketing• Don’t stop communicating via social


Timeline

Post-launchLaunchPre-campaign

-3M -1M -2w -1w

Launch End

1w 2w 4w

1d 2w

4m

Product strategy, Messaging, Creative assets

Identify personal list of friends, family, network, press

Finalize press releases, alert journalist

Send out Embargoed press releases, remind campaign champions

Release new perk, content

Release another new perk, content

Release end of campaign special, perk

Send thanks you

Send updates Send final updates

2m

Ship product




BREAKOUTS


http://www.youtube.com/watch?v=AUMqDlUYGuY


Scheduled launch date 10-17-13

Senses air quality: smoke, CO, heat, pollutants, humidity

$0 funding/awareness

Hello

NEST Protect Launch date 10/8/13

Senses smoke, CO, heat, light and motion

80M in funding/High awareness


You have to start (again)…

Revised launch date: December 10th


ChallengeLaunch hardware startup, Birdi: Smart Air Monitor. Validate consumer/category interest of connected devices/IOT in the emerging smarthome vertical. Develop launch campaign via Indiegogo with a 50K goal. Drive consumer (early tech adopters/moms) and VC awareness. SolutionCreate marketing and communication strategy to launch Birdi. Positioning, value proposition, branding, creative assets, messaging and product story. Execute across owned, paid and earned media channels (website, Indiegogo, social marketing, paid social media and PR). 2 paid media campaigns; holiday and end of campaign 5 day sprint. Results144% funded on Indiegogo. Product validation & category experts positioned Birdi as a main competitor to Nest Protect, an 800M funded company recently acquired by Google by 3.2M.

- Identified by Business Insider as “Top 13 Startups to Watch in 2014”- Events: CES Keynote with AT&T (1-8-14) and NYTM demo (2-4-14)- Partnering with The San Francisco Mayor’s office and are part of their

Entrepreneur in Residence Program - Closed 700K seed round July 2014

Owned: 35% social referral to Indiegogo 27% social conversions

Paid:• Total media spend: $3867 • CAC: $8 // ROI: 18x• 37% total sales conversions• Targeted 5-day end of campaign

end sprint- 19% of total campaign funds

Earned: 759,461 social mentions, shares, engagement 59 media impressions

(ie: NYTimes, Wired, Forbes, TechCrunch, Fast Company, VentureBeat, GigaOM, CBS News, Business Insider, Digital Trends etc)

http://entrepreneur.sfgov.org/


http://youtu.be/AUMqDlUYGuY


Marketing Objective

Our marketing planAwareness 1st, conversion 2nd


Marketing channels

OWNED PAID EARNED

PR

Live events

GetBirdi.com


Paid media strategy

Throughout the campaign, Google Analytics showed Facebook, Twitter to be the highest refers and garnered the most engagement of all traffic to Indiegogo.

Opportunity to target people’s interest, likes and friends of Birdi Followers

Throughout the campaign, Google Analytics showed Facebook, Twitter to be the highest refers and garnered the most engagement of all traffic to Indiegogo.

Opportunity for keyword and hashtag targeting

Google organic and direct referrals were high

Opportunity to target “smartmoms” at mass scale

Opportunity to disrupt NEST and privacy search queries

Why did we pick these platforms?


PerformanceMeasuring success


Attribution model

% conversion

emailfacebookprtwitterwebsiteGoogle search

30%

13%

24%15%

11%7%


Coverage: 59 original posts


44

Final 6 days: $14,742Optimized conversion


45

$72,198 144% funded

Holidays/New Years

Final pushFriends, family & press




BREAKOUTS


Time to make stuff


Brief groups• Groups briefed on mock product specs, launch

objectives, target audience & budget• Teams given playbook & deliverable guidance

Group Exercise Create top-line marketing/launch plan

(owned, paid, earned)

Group Presentations• Each group has 5 minutes to present their product

launch plan and budget allocation

5 mins

30 mins

30 mins


PRESENTATION OUTLINE1. Product overview, target audience and budget2. What crowdfunding platform would you use?3. Perks- what are they4. Activation plan: channels and marketing activities

• Owned• Paid• Earned

5. Media/PR plan


I believe in sharing what we learn with others and hope you found this insightful.

Questions? Tweet @jaeselle


THANK YOU.

Jess [email protected]


References

Indiegogo Field Guide: http://landing.indiegogo.com/iggfieldguide/


Forbes: http://www.forbes.com/sites/yec/2014/05/27/three-crowdfunding-trends-entrepreneurs-shouldnt-ignore/

Geekwire: http://www.geekwire.com/2014/future-crowdfunding-3-important-trends-watch/

Entrepreneur: http://www.entrepreneur.com/article/232301

All images sourced via Getty

http://landing.indiegogo.com/iggfieldguide/

http://landing.indiegogo.com/iggfieldguide/



http://www.forbes.com/sites/yec/2014/05/27/three-crowdfunding-trends-entrepreneurs-shouldnt-ignore/

http://www.geekwire.com/2014/future-crowdfunding-3-important-trends-watch/



How to launch a crowd funded product

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