Introduction to Real Estate Crowdfunding by the CrowdSeekr Team
Introduction to crowdfunding
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14-Sep-2014 -
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Transcript of Introduction to crowdfunding
Agenda
Crowdfunding 101
Choosing a platform
Why people contribute
What makes a good campaign?
The gogofactor
Pooling of funds, from the people
who have passion about your idea.
Often giving back a perk.
Crowdfunding is…..
Introduction
Crowdfunding is not new…
Over $100,000 raised
Average contribution: $0.89
Why crowdfunding?
1. Raise money
2. Gain visibility
3. Gauge demand &
mitigate risk
4. Connect with your
audience
Crowdfunding
Crowdfunding is multiplying the power of your community, and your
community’s communities, to make dreams happen.
Crowdfunding IS… Crowdfunding isn’t…
Shared enthusiasm Static collection
There are no “magic funding elves”
(sorry )
You are responsible for generating
interest and momentum for your
campaign!
Expect to raise 20-30% of funds from
friends & family
Prepare your marketing plan, build
virality
Preparation = success
What makes us unique?
First! Since 2008
$ millions disbursed every month
Open Anyone, Anything, Anywhere, Any time
You keep your money…no matter what!
Merit-based (gogofactor)
Global We’re everywhere (on earth anyway)
Over 120,000 campaigns
196 Countries
Musician
Writer
Entrepreneur
Inventor
Small Business
Maker
Religious organization
Artist
Community Activist
Photographer
Food lover
Game Developer
Non-profit
Designer
Dancer
What motivates people to contribute?
Four “P”s behind why people fund:
1. Passion
2. Perks
3. Participation
4. Pride
What makes a good campaign?
Engaging Pitch
Attainable Goal
Unique Perks
Proactive Communication
Creating a Great Pitch
• Who: are you?
• What: are you raising money for?
• When: will your project take place?
• Where: will your project take place?
• Why: are you raising funds?
• How: can people get involved?
The keys to creating a good pitch are honesty,
transparency and authenticity.
More tips: http://support.indiegogo.com/entries/20353061-create-a-great-pitch
Make it personal…
Make it interesting
More tips: http://support.indiegogo.com/entries/20353061-create-a-great-pitch
Goal Size
87% of campaigns that reach their goal exceed it…by an average of 32%
Consider breaking large goals into smaller projects – success builds momentum
Expect to raise 25-35% of your goal from within your own network (friends & family)
The probability a campaign will reach its goal quadruples (4x) once it reaches 10%
of its goal.
Setting a Higher Goal Doesn’t Always Mean More Money…
Benefits of perks
Benefits of perks
Creating perks
17
More tips: http://www.indiegogo.com/blog/2012/07/indiegogo-insight-perk-pricing-practices.html
http://support.indiegogo.com/entries/20582388-great-perk-ideas
Perks should be unique, creative, and personal.
You can add up to 12 perks at one time. The average
successful campaign has 5 – 8 perks.
You can have more than 1 perk at a same amount
You can change/add perks throughout campaign
Join the conversation
Events
Perks
Perk Ideas
• Offer early access to products/services
• Offer discounts or coupons
• Throw a party for funders
• Donated perks from local businesses
• Teach a class or host a tour
• Offer unique, limited edition items
• Free entry or membership discounts
• Personal thank you notes or phone call
• Share insider secrets
• Join the conversation
Communication
Communicate early & often
1-2 updates per week (treat it like a blog)
Develop a social media/PR strategy
Discuss updates, new perks, new media,
milestones, etc.
Winning the middle game
More tips: http://www.indiegogo.com/blog/2012/07/indiegogo-insight-winning-the-middle-game.html
Leverage Insight from Dashboard
Identify, thank, and
engage key
influencers!
DASHBOARD : Sample Project
Check out our Blog for insights, tips and ideas:
https://www.indiegogo.com/blog/
Browse Indiegogo.com to view other successful campaigns:
http://indiegogo.com
Visit our Campaigner Happiness page to learn the basics:
http://www.indiegogo.com/happiness/campaigner
Browse our Help Center for answers to specific questions:
http://support.indiegogo.com/forums
Learn more on our website
Merit-based platform
More tips: http://support.indiegogo.com/entries/20589776-the-gogofactor
An internal, proprietary algorithm used to measure
the overall activity of your campaign.
What is the gogofactor?
Provides equal opportunity for any campaign to be featured
(home page, newsletter, categories, etc.)
What is the purpose?
Gogofactor
Merit-based platform
More tips: http://support.indiegogo.com/entries/20589776-the-gogofactor
How does it work?
• Campaigns with the highest ranking gogofactor scores will be
featured/highlighted
• The more active you are in promoting your campaign, the higher your
gogofactor score will be.
• 50% of the gogofactor is determined by internal activity by you (campaign
owner) and other 50% is determined by external activity (crowd)
Gogofactor
Merit-based platform
More tips: http://support.indiegogo.com/entries/20589776-the-gogofactor
Gogofactor
Internal Control
• Adding perks to your campaign (we recommend 3-8)
• Add outside links on your campaign
• Include a video for your pitch
• Add Images/video to your gallery
• Regular updates to your contributors
• Proactively promoting your campaign
External Control
• Campaign activity (comments, sharing, etc.)
• # of unique funders
• % to goal
• Total funds raised
Are you next?
Additional Info
http://support.indiegogo.com/forums
Blog
http://www.indiegogo.com/blog/
Thank You!