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My presentation on crowdfunding basics, including the do's and dont's of setting up a campaign, characteristics of a great campaign, and how to create a plan of action to achieve success and reach your goals.
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CROWDFUNDING 101NEWBURYPORT CHAMBERFEBRUARY 20, 2014Julia Claire Campbell - @JuliaCSocial
J Campbell Social Marketing
www.jcsocialmarketing.com
Crowdfunding
“Crowdfunding is the pooling of funds from passionate people to help make something special happen.”
~GoGetFunding.com
Great infographic: http://visual.ly/crowdfunding-success-
statistics
Crowdfunding
Websites that allow nonprofits, businesses and individuals to set up an online fundraising campaign based around a fundraising page, and accept money directly from that page using the website’s own credit card processor. Kickstarter Fundraise.com Fundly indiegogo
Crowdfunding
Smaller Goals Are More Attainable Average successful crowdfunding campaign
is around $7,000. Average campaign lasts around 9 weeks. Campaigns that can gain 30% of their
goal within the first week are more likely to succeed.
http://www.fundable.com/crowdfunding101/crowdfunding-statistics
Crowdfunding
Marketing Drives Campaigns There is a direct correlation between the number
of outside links to a crowdfunding campaign and the success of the campaign.
Social Media is a critical factor in crowdfunding success: for every order of magnitude increase in Facebook friends (10, 100, 1000), the probability of success increases drastically (from 9%-, 20%, to 40%).
http://www.fundable.com/crowdfunding101/crowdfunding-statistics
Crowdfunding
Demographics of the Crowd Age. Individuals ages 24-35 are much more likely to
participate in crowdfunding campaigns. Those over 45 are significantly less likely to back campaigns.
Gender. Men are much more likely to take a risk on an unknown startup.
Income. Those earning over $100,000 per year are the most likely to invest in startups through crowdfunding.
http://www.fundable.com/crowdfunding101/crowdfunding-statistics
Benefits of Crowdfunding
Less overhead in staff time, processing. Potential reach. Social media, email,
peer-to-peer. 24/7 access via online donation
platforms; Required in our always-on, tech-reliant world.
Benefits of Crowdfunding
Opportunity to share a compelling story of impact through multimedia, videos, photos.
Very accurate data about donors. Tracking.
It’s safe when using a verified, reliable vendor.
Challenges of Crowdfunding
Planning is more important than implementation.
Tools can be confusing.
If you build it, they will come… not true.
Challenges of Crowdfunding
It only works with an investment of time and concerted effort.
It is not a fundraising panacea. It will not work if you do not have a
compelling story to share.
So how to do it?
Three main steps:1) Planning2) Marketing3) Follow up
Planning Is Key!
Teamwork Is Key!
Planning
1) Get legal. Just as with other types of fundraising, online
solicitations must be registered with the appropriate officials.
Check with your state attorney’s office or secretary of state office to find out the requirements in your state.
Also, if you do online fundraising in states other than your own, you may need to register there as well.
Resource: http://nonprofit.about.com/od/onlinefundraising/tp/onlinefundraisinghub.htm
Planning
2) Pick a project. Specific projects work best. Crowdfunding does not work for general
asks. Why this project? Why now? Why are you asking? What will happen if this is NOT funded?
Planning
3) Choose a goal. Specific goal – We want to raise $5,000 to
build a playground in 3 months. We need to raise $60,000 or the theater
will close. Kickstarter is an all-or-nothing platform. Make sure to budget for the fees that all
the platforms collect – whether or not you reach your goal.
Kickstarter campaigns are 1 – 60 days.
Planning
Screening Room Digital Fund Transition to digital projectionFuture: Ensuring the continued
maintenance of the theater’s equipment
https://www.kickstarter.com/projects/andrewmungo/screening-room-digital-fund
Planning
4) Select rewards. What will motivate people to back your
project? For nonprofits, it’s impact – change to
society, people helped, animals saved. For businesses, it’s something tangible –
t-shirts, tickets, exclusive access, signed books.
Must be “products and experiences” not cash.
Planning
RewardsSeth Godin – self-published his book https://www.kickstarter.com/projects/297519465/the-icarus-deception-why-make-art-new-from-seth-go
Projecto – Instagram projector https://www.kickstarter.com/projects/1209578799/projecteo-the-tiny-instagram-projector
Planning
5) Instill urgency.
Planning
Urgencyhttp://www.indiegogo.com/projects/aid-afghanistan-for-education-and-peace
“We must keep all 13 schools open
and make up for the lack of funding as a result of cut-backs in USAID into Afghanistan. This requires much more than the initial $10,000 mentioned in this starting goal.”
Planning
6) Be brief.
Planning
In 300-500 words, be able to describe:
The PROBLEM The WHY NOWThe HOW (how the money will be spent)The WIIFM (what’s in it for me) What will this do if funded? How will the
world change? How will lives change?
Planning
Planning
7) Use video.
Planning
Videohttps://www.kickstarter.com/projects/1960547513/save-cinemasalem
https://www.kickstarter.com/projects/1776324009/brck-your-backup-generator-for-the-internet
https://www.kickstarter.com/projects/cesarkuriyama/1-second-everyday-app
Planning
8) Be responsive. Who will respond to inquiries and questions? How will you acknowledge donations? How will you record the donations? How will you cultivate these donors? Do you have a database? Will there be a special group for these
donors? Create a detailed plan of action with
responsibilities, tasks and timelines.
Planning
9) Find the right tool. Kickstarter Fundable Crowdfunder Indiegogo RocketHub Crowdrise
Read the guidelines! Look at the fees involved. Explore.
Marketing
10) Press publish! Video Brief description Links Email Social media share buttons
Marketing
Low hangingfruit first!
Marketing
11) Tell everyone! Don’t just put the “Donate Now” button
on your site and expect donations to roll in!
Have to change the culture in some cases.
Put info everywhere you touch investors or donors.
Alleviate their fears and eliminate obstacles.
Marketing
Sharing is caring!
Marketing
Start with email. Use your network. Personal emails work best. Offer different ways to help – small
donations, spreading the word, sharing it, retweeting
Marketing
Use social media. Use your networks. LinkedIn messages. Facebook! Twitter The key is getting others to share it for
you. Write sample tweets and Facebook posts. Create great, shareable graphics!
Follow Up
Build relationships.
Follow Up
Keep people updated on progress.
Follow Up
Updates Can be daily or weekly Be enthusiastic and positive “This much has already been done,
because of you!” “BUT we could also do so much more…” “We are THIS close to achieving our
goal!”
Follow Up
Share successes!
Follow Up
Have a virtual party on Google Hangout or Skype.
Have an in-person celebration party.Create as much buzz as possible in the local,
regional and national press – find niche publications.
Share your success (or learnings) as a case study on your website.
Offer to talk with other nonprofits or businesses about what you learned.
If these guys could do it…
Griz Coat: https://www.kickstarter.com/projects/hansr/griz-coat
Bug-A-Salt: http://bugasalt.com/ Cat Café:
http://www.indiegogo.com/projects/open-a-cat-cafe-in-london
Pizza Museum: https://www.kickstarter.com/projects/2023690459/pizza-brain-the-worlds-first-pizza-museum-and-rest
Key Takeaways
Have a plan. Create online policies – for email
marketing, online solicitation and social media.
Make sure everything is in compliance. Take some time to find the right tool.Invest resources (staff, time, money) in
fundraising, whether it be online or off. Professional development is your friend.
Resources
Harness The Crowd – www.harnessthecrowd.com – free e-book and other resources
The Crowd Café – www.thecrowdcafe.com Crowdmapped.comSmallknot.com – for local businesses (not
in Boston area, but coming soon)
Thank you!
If you liked this presentation, please Like my Facebook Page:
www.facebook.com/jcsocialmarketing
Twitter: @JuliaCSocial Blog: www.jcsocialmarketing.com Email:
[email protected] Slides will be on SlideShare:
www.slideshare.com/juliagulia77