Spring Activator

How To Run A Successful Crowdfunding Campaign

Crowdfunding Works

Pebble watch raised $10.2M, goal was $100K Ubuntu Edge raised $12.8M, goal was $32M

Contests, Bloggers, Hire Help

Step 1: Public Relations

Thunderclap

A Thunderclap is the best way to launch your crowd funding campaign. !It’s free, easy for people to sign up, and amplifies your campaign’s reach on launch day.

Bloggers

Look for aligned bloggers in your industry, or those with complimentary offerings. !Fashion campaign: fashion bloggers OR home decor, cooking, gardening, or diy bloggers !• Guest Blogging

• pitch them on creating content for their site • Contest Collaborations

• run a contest together, leverage their audience • List Sharing/Social Media Support

• ask them to profile you in their newsletter • ask them to support the campaign through Thunderclap and the duration

• Reviews • give them product to preview and review

Create New Content Throughout Your Campaign

Step 2: Social Media

Champions

These are your biggest fans. !Make a list of 20-50 people you can email and ask for online support. Listen in on social media to find them. !Look for: • existing customers • super fans • friends • family !Create canned tweets, facebook updates, and email/blog copy for them to share with their networks on your behalf

Influencers

These are people with large online audiences. !Make a list of 20-50 people you would like to align your campaign with. Listen in on social media to find them. !Look for: • bloggers • tastemakers • ambassadors !Start building relationships with them early on, make sure you have something to offer them. Great for contest collaborations, guest posting, and sharing content.

The Rule Of Thirds

One Third • personal content • ex “We’re already 29% funded! Thank you so much! [link]” !One Third • business content • ex. “Fund our campaign with $100 and get this awesome perk [link]” !One Third • shared content • ex. “Miss @influencer looks amazing in her #clevercampaignhashtag sneakers. Get yours here [link]” !

Always say thank you. Keep it personal.

Make Your Ad Budget Work For You

Step 3: Online Advertising

Know Your Target Market

Create customer avatars to target through online ads. !Look at: • geographic location • male/female • age • job/education • single/attached • hobbies/likes/similar interests !!!

Example: Dress Company • Location: Canada and US, major cities • Women • 25-44 • Lawyers, Accountants, Bankers • Single or attached • Likes: Kate Spade, Tory Burch

Cost Per Acquisition

How much does it cost you to get funded? !Example: $10 of advertising gets 100 people to your campaign 10/100 people watch your campaign video 1/10 people fund your campaign with $100. !$10 advertising = $100 funding. !• Check your ads every 24 hours. • Always run 2 ads at a time. • Always kill the weaker ad, • Always create a new and improved ad to compare.

Margins & Timing

More Things To Remember

How To Set Your Goal

Know your numbers • Platforms take ~5% of total funds raised • Payment processors take another 3% + $0,20 CAD per pledge • Set a campaign budget. If you’re budget is zero, don't crowdfund. !Set your funding goal. Smaller is better. • Make a list of close friends and family, budget how much they’ll donate. • Cut that number in half. This will be 30% of your funding goal. !How many backers do you need? • The average pledge is roughly $70. • Funding goal / average pledge size = number of backers. • $10,000 / $70 = 143 backers.

Margins

Know your numbers. !Your Fundraising Goal = • Funds you need to expand • Crowdfunding fees • Payment processing fees • Cost of perks • Cost of shipping perks (consider including International Shipping as an add-on perk) • Marketing budget • Cost per acquisition of funders • PR person • Cost of making your campaign video • Cost of your time to run campaign

Campaign Success

Crowdfunding is great for projects and terrible for expansion. !Success rate: 44% Kickstarter, 34% on Indiegogo !Success Factors: • PR - hire a publicist from 6 weeks before your launch date through to the end of your campaign. • Pre-launch - create a launch plan, do a thunderclap, get as many people beforehand as possible. • Friends and Family - ask them to contribute. • Time Invested - this will become your full time job. • Perks and video - they need to be awesome. • CPA - know how much it costs you to get a funder. • Launch - have a party, host a contest, make a lot of noise. • The first three days are crucial to getting your campaign off the ground.

The Lead Up To Success

90 days out • film video • write draft campaign • create Thunderclap • start wrangling champions, influencers,

friends, family • plan launch party • promo Thunderclap/email list • create hashtag 30 days out • reach out to bloggers and influencers • line up pr for launch day • invite everyone to launch party • promo Thunderclap/email list

7 days out • email first 100 and remind them of launch • big push for Thunderclap LAUNCH DAY • Thunderclap • Launch party • PR storm • Influencer/Champion social media storm • email first 100 and get them to donate The first 3 days • get every “friendly” to fund you in the first 3

days • Reach out to bigger pr outlets using traction as

the story