The Crowdonomic

Guide to

crowdfunding

Photo by Ryan Li

So#you#want%to%get%started?!Determining#if#your#idea#is#ready#for#crowdfunding!Things'to'do'before'you'begin!

Creating)your)campaign!Perfecting*your*pitch!Making'a'video!Setting'a'target'and'campaign'duration!Creating)and)pricing)your)rewards!

Launching)your)campaign!Finding&the&best&time&to&launch!Building(Buzz!

During'your'campaign!Crafting)a)Marketing)Plan!Campaign(updates!Creating)and)keeping)momentum!

Post"campaign!Fulfilling(Rewards!

In this guide

You$can$run$a$campaign$if…!

You$have$a$clear$and$executable$business$idea$! You$are#based#in#Asia! Your%project%is%not%a%charitable%cause%or%a%“fund%my%life”%project!

But$are$you$ready$for$crowdfunding?!

Crowdfunding+success+is+highly+linked+to+the+level+of+commitment+and$planning$that$you$are$able$to$put$into$running$your$campaign.$Be#prepared&to&spend&a&lot&of&time&and&effort&on&your&campaign,&and$don’t$be$shy$about$asking$for$help!$Doing$it$alone$can$be$a$difficult(journey,(so(try(to(recruit(some(team(members(to(support(you.%Our%team%at%Crowdonomic%will%also%be%there%to%guide%you%along&the$way.$!

Things'to'do'before'you'begin!

Get$a$PayPal$Premium/Business$account! Create&a&Crowdonomic&account&and&update&your&profile&with&your&

photo%and%social%media%links.%! Get$connected.$You’ll$be$using$social$media$extensively$to$get$the$

word%out%so%make%sure%you’re%already%well%connected%on%various%social'media'platforms.'You'should'already'be'a'part'of'various'groups/communities.before.you.launch.your.campaign.!

Do#your#research.#See#what#you#can#learn#from#campaigns#similar#to#yours.#!

Plan,&plan,&plan.&You#should#have#a#clear#goal,#a#proper#execution#plan%of%how%you%will%use%the%funds%you%receive,%and%a%clear%idea%of%who$your$target$audience$is.!

Get$excited!!

So you want to get started?

Perfecting*your*pitch!• Fill#out#all#the#fields#with%as%many%details(as(possible.(People(want(to(know%where%their%money%is%going%and%whether&you’re&qualified&to&execute&your%business%idea%successfully,%so%you$need!to#build#trust#and#be#transparent.)!

• Tell$a$compelling$story—Let$supporters(connect(with(you(on(a(personal)level.)Facts)tell,)but)stories)sell.%!

• Make%it%visual."Break"up"the"text"with%some%pictures.%Choose%a%relevant%and$compelling$campaign$photo$for$your%project(as(well.!

• Proofread!for$any$spelling$or$grammar%errors.%Once%you%submit%a%draft&for&review,&you&can’t&make&any&more%changes.%!

• Choose&a&descriptive&title&and&be&specific.(Be#specific#and#avoid#something*generic*like:*“Please*help*me#fund#my#new#movie”.#!

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Creating your campaign

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Tips!• Keep$it$short$(1"3"minutes)"as"people"are"busy"and"have"short"attention"spans!!

• When%writing%your%script,%get%straight%to%the%point%and%tell%people%what%pain%point&your&project(will(solve,(who(you(are(and(the(story(behind(your(campaign,)as)well)as)what)you’re)going)to)do)with)the)funds)that)you)raise.)If#you#can,#show#us#the#rewards#too.#!

• Get$as$much$feedback$as$you$can$from$friends$and$family$on$your$script$before%shooting.%!

• This%is%your%chance%to%connect%with%people%emotionally!%Even%if%you%may%be%camera"shy,%you%should%try%to%star%in%your%own%video.%Be%genuine%and%be%yourself !!

• Make%sure%your%video%is%well"lit$and$that$the$audio$is$clear.$!• Add#some#music,#but#make%sure%you%have%legal%right%to%it.%Check&out:"Vimeo&Music&Store,"Free$Music$Archive,"Ccmixter,"Soundcloud.!Make%it%relevant.%Give%people%a%sneak%peek%of%your%project.%If%you’re%recording)an)album,)show)off)your)musical)talent!)If)you’re)creating)a)film,)give%a%preview'of'your'cinematography'skills'too!!

Creating)a)video!People&prefer&watching&videos&to&reading&text.&But&don’t"think"that"you$need$to$spend$thousands$of$dollars$to$create$a$good$video;$all$you$need$is$an$honest$and$personal$message.$There$are$many$free$tools%available,%and%it’s%possible%to%create%a%compelling%video%even%with%basic%video%equipment%(like%your%phone!).$You$can$upload$the$video&directly&on&our&site,&or&embed&a&video&from&Youtube&or&Vimeo.&!

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Creating your campaign

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Choosing(your(campaign(duration!You$can$set$your$campaign$to$be$60$days$and$below.$A$longer$duration$doesn’t(necessarily(mean(you’ll(be(able(to(raise(more(funds.(If(the(duration)is)too)long,)it)will)be)harder)to)maintain%discipline%in%promoting%your%campaign%and%you%might%lose%momentum.%Find%a%length%that%can%give%you%enough%time%to%achieve%your%goal%but%still%create%a%sense%of%urgency(for(people(to(back(your(campaign.(!

Setting'a'target!Create&a&budget.&Remember&to!factor'in'the'cost'of'producing'and'fulfilling'rewards,'as'well'as'the'administration'and'online'payment'fees.'If#you#can,#break#down#the#cost#of#how#you#will#be#using#the#funds#raised#and$add$it$to$your$campaign$description.$People$like$transparency.!

Be#realistic.*Try*to*quantify*your*reach*by*calculating*the*number*of*people%in%your%personal%network%and%their%potential%reach,%then%multiply%that$by$the$average$contribution$and$conversion$rate$you$might$expect.$!

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Creating your campaign

For$example:!

Your%personal%network%+%your%friend’s%friends%+%your%social%media%followers(=(4,000!

You$estimate$that:$$Avg.$contribution$=$SGD$50$and$Conversion$rate"="5%!

Target'='4,000'x'50'x'0.05'=!SGD$10,000!

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You$can$use$the$following$grid!to#help#you#determine#your#target!

Creating your campaign

What%are%Rewards?%Rewards!are!products!and!services!that!campaign!creators!give!to!supporters!in!exchange!for!their!financial!contribution.!Remember!to!be!creative!but!most!importantly,!responsible.!Supporters!will!expect!that!you!deliver!the!rewards!responsibly!and!in!a!timely!fashion.!Keeping!in!mind!your!target!audience,!you!can!use!the!following!grid!to!help!you!determine!your!rewards.!

Designing rewards

Do! Think!about!your!target!audience.!What!will!they!find!appealing!as!a!reward?!

Offer!something!of!value.!It!can!be!a!one"of"a"kind!experience!or!a!highly!customized!version!of!your!product,!a!pre"order!of!your!product,!social!recognition,!or!a!creative!memento.!Be!creative!!

Ask!around!and!see!if!a!local!business!is!willing!to!“sponsor”!your!campaign!by!complementing!your!reward!offer.!It’s!a!win"win!situation!as!you!can!bring!them!new!customers.!

Research!similar!campaigns!for!reward!ideas.!

Still!lacking!ideas?!Get!momentum!by!setting!an!early!bird!price,!limiting!it!to!your!first!few!supporters.!You!can!also!offer!multiples!of!your!product!to!encourage!bulk"buying.!

Test!your!reward!ideas!with!your!friends,!family!and!even!strangers!by!reaching!out!to!relevant!online!communities.!It’s!a!good!way!to!get!the!word!out!about!your!campaign!too.!

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Don’t! Create!overpriced!rewards.!Would!you!pay!$200!for!a!T"shirt!with!your!logo?!

Be!vague!when!you’re!describing!your!reward.!Be!detailed,!eg.!state!the!expected!delivery!date.!

Forget!to!balance!the!price!of!a!reward!vs.!the!cost!(and!time!it!will!take)!of!actually!fulfilling!it!!Sending!something!in!the!mail?!Add!in!shipping!costs.!You!don’t!want!to!be!using!up!all!your!funds!for!reward!fulfillment!!

Offer!too!few!choices.!Have!a!good!range!of!rewards!under!$100,!as!most!people!will!donate!in!this!range.!!

Overpromise!and!under!deliver.!Only!promise!rewards!that!you!are!certain!you!can!fulfill.!!

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Designing rewards

Before&you&submit&your%campaign!So#you’ve#filled#out#all"the"fields,"uploaded(your(video,(added(your(rewards'and'you’re'ready'to'submit'your'project(for(approval.(But(wait!(Once(you(submit'your'project,'you'can’t&edit!your%campaign(unless&you&notify&us&directly&at#admin@crowdonomic.com."So"make"sure%you%double%and%triple"check%so%that%everything*is*perfect.*Also,*try*to*get*as*much%feedback%as%possible%by%showing%your%campaign%to%others%before%it’s%published.+Having+your+friends+review+your%campaign%will%give%them%more#of#a#sense$of$ownership$in$your$project,$making'them'more'likely'to'share'it'with'their&own&social&circles.&!

Choosing(the(right(time%to%launch!

Once%you%submit%your%campaign,%we’ll%review&if&it’s&ready&and&notify&you&once&it’s%published.%If%you%have%a%particular(date%for%when%you%want%to%launch%your%campaign,)just)drop)us)a)note)at)admin@crowdonomic.com."!!!

Building(buzz!Leverage'your'existing'network!Before&your&campaign&is&published,&you$should$spread$the$word#about#your%campaign%among%your%inner%circle&and&encourage&them&to&contribute*once*your*campaign*is*live.&You&can&even&plan&a&launch&party&to&gain&some&instant&traction.&Your%immediate%network%is%key%to%getting&momentum&going.&!Build&your&network&further!Research(relevant(supporting(communities*on*Facebook*and*Linkedin'Groups,'platforms*like*f6s,!referral&sources,&and&influencers,&like%bloggers%who%are%relevant%to%your%campaign.%Try%to%engage%in%conversations+and+be+a+part+of+the+community)beforehand.)If)you$join$groups'just'to'promote'your'project'immediately)afterward,)you)might)sound&disingenuous.&!

Launching your campaign

Crafting!a!Marketing!Plan!• Plan!and!schedule!your!marketing!activities!in!advance.!You!can!use!tools!like!HootSuite!to!schedule!social!media!announcements!in!advance,!like!the!number!of!days!left!for!your!campaign!or!when!you!reach!a!new!milestone.!

• Draft!outreach!materials!like!a!press!release,!e"mails,!blog!posts,!thank"you!videos!and!campaign!updates.!Craft!your!messages!according!to!different!target!audiences!that!you!are!trying!to!reach.!!

• Create!a!list!of!media!sources/bloggers/influencers!you!are!going!to!reach!out!to!after!your!launch.!Think!about!your!target!market—do!you!know!where!they!consume!news?!

• Don’t!forget!about!offline!marketing!too.!Research!relevant!networking!events!which!you!can!go!to!during!your!campaign!to!build!your!network!even!further.!Asking!people!to!support!your!campaign!face"to"face!is!more!effective!than!an!e"mail.!Create!meet"ups!with!your!first!supporters,!or!workshops!to!educate!people!about!your!project.!

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Campaign!Updates!• It’s!important!to!keep!people!updated!without!spamming!them.!You!should!post!an!update!every!time!you!reach!a!new!milestone.!

• Thank!all!your!supporters!as!soon!as!you!can!and!encourage!them!to!spread!news!about!your!campaign!through!their!own!networks.!You!should!also!be!prompt!to!respond!to!any!comments!or!questions!about!your!campaign.!

• Make!it!visual!!Do!mix!up!your!updates!with!photos,!videos!of!your!team,!your!rewards,!and!more.!People!are!more!likely!to!share!visual!media!on!their!own!social!channels.!

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during your campaign

!Creating!and!Keeping!Momentum!!

• 70%!of!successful!campaigns!reach!their!target!within!the!first!10!days.!This!is!why!building!buzz!even!before!launching!your!campaign!is!really!important.!Aim!to!raise!at!least!one!contribution!during!your!first!day.!Having!a!higher!percentage!of!funding!lends!you!credibility!and!gets!your!campaign!noticed.!!

• Within!reaching!50%!of!your!target,!there!could!be!some!campaign!fatigue,!so!craft!your!marketing!plan!to!build!more!buzz!around!this!point,!for!example!by!adding!new!perks!or!having!a!video!update.!!

• Keep!looking!for!relevant!groups,!or!even!organizations!who!can!help!you!spread!your!campaign.!

• During!the!last!few!days!of!your!campaign,!tell!people!that!time!is!running!out!and!try!to!build!a!sense!of!urgency.!

during your campaign

Fulfilling!Rewards!• Keep!supporters!well"informed!about!the!status!of!the!delivery!of!their!perks.!Are!you!expecting!any!delays?!Keep!them!updated.!Are!you!in!the!process!of!packing!up!rewards!in!boxes!and!licking!envelopes?!Take!pictures!and!share!them!with!your!supporters!!Engaging!supporters!doesn’t!end!when!the!campaign!does.!

• Thank!all!of!your!supporters!!• We’ll!be!sending!you!the!relevant!contact!information!about!your!supporters!so!that!you!can!get!in!touch!with!them!and!fulfill!rewards.!!

• If!you!are!shipping!out!rewards,!make!sure!to!budget!for!this!in!advance!and!do!take!note!of!smaller!costs!that!can!add!up.!!!

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after your campaign

Start your

project!