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CROWDFUNDING
has arrived!
Propel Arizona – CJ Cornell @PropelArizona @cjcornell
www.PropelArizona.com
Slideshare/PropelArizona
@PropelArizona
cj@PropelArizona.com
Crowdfunding
•What is Crowdfunding? Fact vs Fiction.
•How does it work? & Why does it work?
•How can we use crowdfunding?
...
CJ Cornell is ...
First, let’s talk about …
Entrepreneurship
&
Arizona
1
#
AZ Entrepreneurship
10
top
Places to do business …
46th in the U.S.A.
venture capital, equity investing
We’re Great at
Starting up
(planting Seeds) **
** and just AWFUL at outcomes –
quality, scale, wealth & economic growth …
WE‟RE NOT THE ONLY
ONES …
** (fostering entrepreneurial success is hard)
concept
IPO (market share,
revenues etc )
Product
(Risk, growth)
Entrepreneurial Growth
concept->product->market->profit
$...
Starting a company
is easier than ever …
… but growing a company is
harder & riskier than ever …
The Series-A Crunch
Crowdfunding
Crowdfunding
concept
IPO (market share,
revenues etc )
Product
(Risk, growth)
Entrepreneurial Growth
concept-...
Source: http://theyec.org/making-sense-of-the-jobs-act-and-crowdfunding-infographic/
What is Crowdfunding ?
The safety of crowds
The passion of crowds
The wisdom of the crowds
Crowdfunding
• Source – http;//crowdfunder.com
• Source – http;//crowdfunder.com
Currently “kinda-sorta” legal in US – Sept 23rd 2013
Jumpstart our Business Startup (JOBS) Act
5 April 2012 (& Aug 2012, & Dec 2012 ….)
• Equity Crowdfunding - not (really) in the USA yet.
• JOBS act (April 2012) technically enables CF – but has
not yet been...
September 23rd
This is both GREAT news and BAD news
1. “General Solicitation” is allowed
2. But “Accredited Investors” ONL...
Rewards
based, “contribution”
crowdfunding
The Kickstarter model –
„donations‟
“THE KICKSTARTER MODEL”
Rewards-based, Donation Crowdfunding:
ALL OR NOTHING
Perks &
Rewards
Updates (and Blogging)
Updates (and Blogging)
Comments & Engagement
Kickstarter (2012)
2.2 million people pledged a total of
$319,786,629
(up 221% from 2011)
Backers pledged $606.76 per minu...
Source: http://KickstartersHQ.com
WHY …
Do people Crowdfund?
Lessons from Ethan Mollick‟s “The Dynamics of Crowdfunding: Determinants of Success and Failure”
3 Why’s: 1. They connect to the greater
purpose of the campaign
2. They connect to a physical
aspect of the campaign like ...
The Real
(Crowdfunding)
Why’s
• Passion
– For the technology
– For the industry
– For the cause
– For the product
• Affini...
emotional ROI.
Not financial ROI
WYNTK(what you need to know)
Crowdfunding is about …
(when crowdfunding …)
“its not what you
do, but why you do it,”
WYNTK(what you need to know)
http://www.kickstarter.com/projects/1104350651/tiktok-lunatik-
multi-touch-watch-kits
http://trendwatching.com/trends/infographics/presumers/
“Consumers who want products before they are
developed”
Pre-orders...
UH OH …
The Kickstart Model..
1. Crowdfunding = New “1st Money” for ventures
($10k - $50k average– but wild exceptions)
2. Equity Crowdfunding is Still ...
What does success
look like?
• The iPhone-friendly Pebble watch earned $7.6
million more than its $100,000 goal.
• And the Galileo iPhone platform clos...
• Ouya raised $2 million in one day for a new Android gaming
console (it’s raised more than $5 million to date),
• the Nif...
What do successful
campaigns have in
common?
http://www.kickstarter.com/projects/hop/ele
vation-dock-the-best-dock-for-iphone
Projectio
http://www.kickstarter.com/projects/1209578799/projecteo-the-tiny-instagram-projector
http://www.kickstarter.com/projects/mikebond/ti2-sentinel-titanium-cache?ref=home_popular
http://www.kickstarter.com/projects/poots/kingdom-death-
monster?ref=home_popular
http://www.kickstarter.com/projects/smartthings/smartthings-make-your-
world-smarter?ref=category
http://www.kickstarter.com/projects/thejumpshot/jumpshot-a-new-weapon-to-
battle-pc-frustration?ref=category
http://trendwatching.com/trends/infographics/presumers/
Successful campaigns took an average
11 days preparing for their launch.
http://blog.indiegogo.com/2013/01/12-insights-for...
Campaigns ran an average 49 days in
2012, as opposed to 60 in 2011.
Successful campaigns fundraised for
39 days.
Crowdfunding Myths & Mistakes
• Myth #1: If You Build It, They Will Come
• Myth #2: Cash is Free
• Making it about you
• U...
www.propelarizona.com
WYNTK(what you need to know)
Successful Crowdfunding
Campaigns Focus on
The new 4 P’s …
the
1.
the
2...
focus on “them” –
not your company
WHO are they?
What motivates them?
Interests, Values …
the
1.
The new 4 P’s of
Crowdfun...
Crafting a
Successful
Crowdfunding Campaign
Some initial rules ….
1. Crowdfunding takes work, new skills.
2. It takes a strategy, and preparation.
3. The rules are different.
4. You can’t ...
Components
of a
Crowdfunding Campaign
 Title & Short Description
• (repeatable & compelling)
 Long Description (“The Pitch”)
• Make it a story … about “them”
...
Crafting the “Pitch”
First: Who What Why When …
• The 3 Who’s:
– Who are the donors? (affinity & passion)
– Who is benefits? (the market)
– Who...
First: Who What Why When …
• What is your project & goal?
– Understandable & Simple
– Compelling & Intriguing
– Repeatable...
Other Tips
• Tell a story
• Make it about them
• The History of the idea is intriguing
• What is the Impact? – why is this...
Exercise –
Craft the Pitch
Crafting your Pitch
Title & Short Description
•(repeatable & compelling)
Long Description (“The Pitch”)
•Make it a story...
Pitch Notes - 1
• Who (donors, market)
• “Why” – the story
• Impact (on the market)
• Impact (on the donors)
Pitch Notes - 2
• Story, and History …
• FAQ
• Perk Ideas (what’s important to donors)
• Calls to Action
Visuals
The Importance of Visual Media
• 64% of successful campaigns in had pitch videos.
• Campaigns with videos under 5 minutes ...
Perks & Rewards
Directed by
Patrick Million
Executive Producer
CJ Cornell
a Patrick Million FILM
American Grandmaster
Rewards Crowdfunding
• Incentives & perks
• Pre-Orders
• Pre-Sumers
• Market Validation
Rewards don’t have to worth $$
• $25 perk is the single most claimed
perk, representing nearly 25% of all perks that
are selected.
• While the $25 dollar...
• $100 perks raise more money than any other
perk price and make up nearly 30% of total
funds. A $100 perk combined with t...
some
Rules for Rewards
1. Make perks unique &
exclusive
Avoid T-shirts, Mugs & Hugs
2. Target them
3. Give them a
connection
“The
Cocktail Party
Effect”
“The
Restaurant
Effect”
“The
Carey School
Effect”
The less tangible the perk,
the more public (visible) &
EXCLUSIVE it needs to be.
The Campaign
How much $$ ?
How long?
Discussion
• How much should we raise?
– Have you raised money before? Return?
– Do you/did you work at a highly visible p...
HOW to Crowdfund?
PUSH - Running the campaign
• Social Media
• Comments & Updates
• Networking
• Personal Pitches
Your mission: To get
them talking about
your project
Now that you’ve launched …
Continue the story
Social Engagement
– Transparency & Trust
– Social Proof & Viral FX
– Engagement & “The Fundamentals”
– Twitter
– Facebook
...
most successful projects receive about
25-40% of their revenue from their
first, second and third degree of
connections.
T...
1. Create: (of course)
- A Facebook Account
- A Twitter Account
(for your campaign)
2. Tweet & Post
–Frequently
–Uniquely
–Personally
3. Post Updates & Blog
•About your progress
•About the subject
•About the industry
•About the People
4. Go 1-1
•Reply to comments
•Retweet/Repost
Your fans and donors are your most
powerful advocates!
5. Target, Measure & Adjust
•Different Messages for different
groups
•Google, Hootsuite, others
•Learn and Adjust focus
Metrics
http://www.perlsteinlab.com/blog/anatomy-of-a-crowdfund-week-3-slow-and-steady
Metrics
http://www.perlsteinlab.com/blog/anatomy-of-a-crowdfund-week-3-slow-and-steady
the importance of google analytics to track
and improve performance
• + perks from fivvr
•
• http://www.perlsteinlab.com/b...
Campaign Checklist
Social Media
Create a schedule 2-5x / week
Use an automated tool
Eg Hootsuite
Post interesting info...
Success Factors
http://online.wsj.com/article/SB100008723963904438558045776010130940
84438.html?mod=googlenews_wsj#articleTabs%3Darticle
http://www.indiegogo.com/blog/2012/05/indiegogo-insight-campaigns-that-take-these-six-actions-raise-8-times-more-
money-th...
http://www.indiegogo.com/blog/2012/05/indiegogo-insight-campaigns-that-take-these-six-actions-raise-8-times-more-
money-th...
http://www.indiegogo.com/blog/2012/07/indiegogo-insight-winning-the-middle-game.html
successful campaigns raise, on average, 49%
percent of their goals during the first and
last 10% of the campaign length.
The most important
secret is …
Showing Momentum
(the perception of momentum)
The most obvious
secret is …
Credibility
= trust, competence
& follow-through
www.propelarizona.com
Crowdfunding
Entrepreneurship & Innovation
Arizona Economic Growth
Practical
Crowdfunding
Workshop
www.propelarizona.com
@PropelArizona
Slideshare/PropelArizona
days
Crowdfunding is measured in …
Entrepreneurship
Crowdfunding Arizona
Can it jumpstart entrepreneurship?
1. Kickstarter “Fails”
Arizona does poorly …
2. Members =/ Supporters
% of supporters is the key ….
3. Entrepreneurship is Different
Products, Companies, Entrepreneurs
…
4. The role of “Ecosystem”
Incubators, accelerators, mentors etc ..
5. The power of Community
Shared Goals, Passions, Outcomes …
Shared Goals, Passions, Outcomes …
Crowdfunding for Entrepreneurship & Economic Growth
Shared Goals, Passions, Outcomes …
People as Important as Projects …
Organizations & Affiliations …
Entrepreneurs success as much as funding …
$15k - $100k *(Average $50k) ….
Crowdfunding for Entrepreneurship & Economic Growth
www.PropelArizona.com
Slideshare/PropelArizona
@PropelArizona
cj@PropelArizona.com
Practical Crowdfunding for Arizona Entrepreneurs - Fall 2013
Practical Crowdfunding for Arizona Entrepreneurs - Fall 2013
Practical Crowdfunding for Arizona Entrepreneurs - Fall 2013
Practical Crowdfunding for Arizona Entrepreneurs - Fall 2013
Practical Crowdfunding for Arizona Entrepreneurs - Fall 2013
Practical Crowdfunding for Arizona Entrepreneurs - Fall 2013
Practical Crowdfunding for Arizona Entrepreneurs - Fall 2013
Practical Crowdfunding for Arizona Entrepreneurs - Fall 2013
Practical Crowdfunding for Arizona Entrepreneurs - Fall 2013
Practical Crowdfunding for Arizona Entrepreneurs - Fall 2013
Practical Crowdfunding for Arizona Entrepreneurs - Fall 2013
Practical Crowdfunding for Arizona Entrepreneurs - Fall 2013
Practical Crowdfunding for Arizona Entrepreneurs - Fall 2013
Practical Crowdfunding for Arizona Entrepreneurs - Fall 2013
Practical Crowdfunding for Arizona Entrepreneurs - Fall 2013
Practical Crowdfunding for Arizona Entrepreneurs - Fall 2013
Practical Crowdfunding for Arizona Entrepreneurs - Fall 2013
Practical Crowdfunding for Arizona Entrepreneurs - Fall 2013
Practical Crowdfunding for Arizona Entrepreneurs - Fall 2013
Practical Crowdfunding for Arizona Entrepreneurs - Fall 2013
Practical Crowdfunding for Arizona Entrepreneurs - Fall 2013
Practical Crowdfunding for Arizona Entrepreneurs - Fall 2013
Practical Crowdfunding for Arizona Entrepreneurs - Fall 2013
Practical Crowdfunding for Arizona Entrepreneurs - Fall 2013
Practical Crowdfunding for Arizona Entrepreneurs - Fall 2013
Practical Crowdfunding for Arizona Entrepreneurs - Fall 2013
Practical Crowdfunding for Arizona Entrepreneurs - Fall 2013
Practical Crowdfunding for Arizona Entrepreneurs - Fall 2013
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Practical Crowdfunding for Arizona Entrepreneurs - Fall 2013

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Crowdfunding Workshop on Practical Crowdfunding information and techniques for Arizona Entrepreneurs by Propel Arizona's CJ Cornell

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  • Thanks to www.presentationmagazine.com For the template
  • In 2012 - Arizona had the HIGHEST level Entrepreneurial Growth
  • In 2012 - Arizona had the HIGHEST level Entrepreneurial Growth
  • Also: #1 student venture, top-10 places to start a business
  • In 2012 - Arizona had the HIGHEST level Entrepreneurial Growth
  • In 2012 - Arizona had the HIGHEST level Entrepreneurial Growth
  • Thanks to www.presentationmagazine.com For the template
  • ** Phoenix Business Journal, SJ Bus Journal
  • Gogetfunding.com
  • Also: #1 student venture, top-10 places to start a business
  • People – who, the target(s) niches … why … what is important to themPitch – cool, intriguiing, MAKES THEM WANT to BE A PART OF YOUR JOURNEY! AND GET OTHERS TO JOIN!
  • Also: #1 student venture, top-10 places to start a business
  • Also: #1 student venture, top-10 places to start a business
  • Transcript of "Practical Crowdfunding for Arizona Entrepreneurs - Fall 2013"

    1. 1. CROWDFUNDING has arrived! Propel Arizona – CJ Cornell @PropelArizona @cjcornell
    2. 2. www.PropelArizona.com Slideshare/PropelArizona @PropelArizona cj@PropelArizona.com
    3. 3. Crowdfunding •What is Crowdfunding? Fact vs Fiction. •How does it work? & Why does it work? •How can we use crowdfunding? •Success & benefits: For entrepreneurs & communities Beyond the headlines and hype: How can crowdfunding help our economy?
    4. 4. CJ Cornell is ...
    5. 5. First, let’s talk about … Entrepreneurship & Arizona
    6. 6. 1 # AZ Entrepreneurship
    7. 7. 10 top Places to do business …
    8. 8. 46th in the U.S.A. venture capital, equity investing
    9. 9. We’re Great at Starting up (planting Seeds) ** ** and just AWFUL at outcomes – quality, scale, wealth & economic growth …
    10. 10. WE‟RE NOT THE ONLY ONES … ** (fostering entrepreneurial success is hard)
    11. 11. concept IPO (market share, revenues etc ) Product (Risk, growth) Entrepreneurial Growth concept->product->market->profit $ $ $ $ Venture Capital Angels (accelerators/incubators)
    12. 12. Starting a company is easier than ever … … but growing a company is harder & riskier than ever …
    13. 13. The Series-A Crunch
    14. 14. Crowdfunding Crowdfunding concept IPO (market share, revenues etc ) Product (Risk, growth) Entrepreneurial Growth concept->product->market->profit $ $ $ $ Venture Capital Angels (accelerators/incubators) Crowdfunding Crowdfunding
    15. 15. Source: http://theyec.org/making-sense-of-the-jobs-act-and-crowdfunding-infographic/
    16. 16. What is Crowdfunding ?
    17. 17. The safety of crowds The passion of crowds The wisdom of the crowds Crowdfunding
    18. 18. • Source – http;//crowdfunder.com
    19. 19. • Source – http;//crowdfunder.com Currently “kinda-sorta” legal in US – Sept 23rd 2013
    20. 20. Jumpstart our Business Startup (JOBS) Act 5 April 2012 (& Aug 2012, & Dec 2012 ….)
    21. 21. • Equity Crowdfunding - not (really) in the USA yet. • JOBS act (April 2012) technically enables CF – but has not yet been approved by SEC. • No documented fraud in USA or other areas. • Equity CF is for “high growth companies” seeking significant funding from experienced investors • Will dramatically change in 3-5 years (CJ prediction) www.propelarizona.com WYNTK(what you need to know)
    22. 22. September 23rd This is both GREAT news and BAD news 1. “General Solicitation” is allowed 2. But “Accredited Investors” ONLY 3. You must FILE w/SEC Prior 4. Investors must provide documentation SEC Changes some 80-year old rules (“506c”)
    23. 23. Rewards based, “contribution” crowdfunding The Kickstarter model – „donations‟
    24. 24. “THE KICKSTARTER MODEL” Rewards-based, Donation Crowdfunding:
    25. 25. ALL OR NOTHING
    26. 26. Perks & Rewards
    27. 27. Updates (and Blogging)
    28. 28. Updates (and Blogging)
    29. 29. Comments & Engagement
    30. 30. Kickstarter (2012) 2.2 million people pledged a total of $319,786,629 (up 221% from 2011) Backers pledged $606.76 per minute People in 177 countries backed a project in 2012 (That's 90% of the countriesin the world)
    31. 31. Source: http://KickstartersHQ.com
    32. 32. WHY … Do people Crowdfund?
    33. 33. Lessons from Ethan Mollick‟s “The Dynamics of Crowdfunding: Determinants of Success and Failure”
    34. 34. 3 Why’s: 1. They connect to the greater purpose of the campaign 2. They connect to a physical aspect of the campaign like the rewards 3. They connect to the creative display of the campaign’s presentation three main reasons why people unconnected to a project or business would support it: What Is Crowdfunding And How Does It Benefit The Economy - Forbes http://www.forbes.com/sites/tanyaprive/2012/11/27/what-is-crowdfunding-and-how-does-it-benefit-the-economy
    35. 35. The Real (Crowdfunding) Why’s • Passion – For the technology – For the industry – For the cause – For the product • Affinity – For the Entrepreneur – For the region, industry etc • Connection • Every reason BUT R.O.I. …
    36. 36. emotional ROI. Not financial ROI WYNTK(what you need to know) Crowdfunding is about …
    37. 37. (when crowdfunding …) “its not what you do, but why you do it,” WYNTK(what you need to know)
    38. 38. http://www.kickstarter.com/projects/1104350651/tiktok-lunatik- multi-touch-watch-kits
    39. 39. http://trendwatching.com/trends/infographics/presumers/ “Consumers who want products before they are developed” Pre-orders Early adopters Supporters
    40. 40. UH OH … The Kickstart Model..
    41. 41. 1. Crowdfunding = New “1st Money” for ventures ($10k - $50k average– but wild exceptions) 2. Equity Crowdfunding is Still Far away 3. Rewards based Model IS Crowdfunding today 4. All or Nothing Crowdfunding – Standard 5. Perks and Rewards: Pre-order Crowdfunding 6. Social Media & Content Intensive www.propelarizona.com WYNTK(what you need to know)
    42. 42. What does success look like?
    43. 43. • The iPhone-friendly Pebble watch earned $7.6 million more than its $100,000 goal. • And the Galileo iPhone platform closed its Kickstarter campaign at $702,000, far surpassing its $100,000 goal.
    44. 44. • Ouya raised $2 million in one day for a new Android gaming console (it’s raised more than $5 million to date), • the Nifty MiniDrive, external memory for Apple MacBooks. The tiny storage company is more than 2,000% above its $11,000 goal with 15 days left in the campaign.
    45. 45. What do successful campaigns have in common?
    46. 46. http://www.kickstarter.com/projects/hop/ele vation-dock-the-best-dock-for-iphone
    47. 47. Projectio http://www.kickstarter.com/projects/1209578799/projecteo-the-tiny-instagram-projector
    48. 48. http://www.kickstarter.com/projects/mikebond/ti2-sentinel-titanium-cache?ref=home_popular
    49. 49. http://www.kickstarter.com/projects/poots/kingdom-death- monster?ref=home_popular
    50. 50. http://www.kickstarter.com/projects/smartthings/smartthings-make-your- world-smarter?ref=category
    51. 51. http://www.kickstarter.com/projects/thejumpshot/jumpshot-a-new-weapon-to- battle-pc-frustration?ref=category
    52. 52. http://trendwatching.com/trends/infographics/presumers/
    53. 53. Successful campaigns took an average 11 days preparing for their launch. http://blog.indiegogo.com/2013/01/12-insights-for-2012.html
    54. 54. Campaigns ran an average 49 days in 2012, as opposed to 60 in 2011. Successful campaigns fundraised for 39 days.
    55. 55. Crowdfunding Myths & Mistakes • Myth #1: If You Build It, They Will Come • Myth #2: Cash is Free • Making it about you • Unrealistic Expectations • Lack of clarity • No call to action • Expecting to be found: (No Marketing) • Ignoring Small Donations/Donors http://kickstartershq.com/articles/5-project-crushing-kickstarter-mistakes-how-to-avoid-them http://www.crowdsourcing.org/document/3-big-crowdfunding-myths-via-funderhut/23804
    56. 56. www.propelarizona.com WYNTK(what you need to know) Successful Crowdfunding Campaigns Focus on The new 4 P’s … the 1. the 2. the 4. the 3.
    57. 57. focus on “them” – not your company WHO are they? What motivates them? Interests, Values … the 1. The new 4 P’s of Crowdfunding .. www.propelarizona.com the 2. You are pitching to “them” TELL A STORY !! WHY is more important than $$ VIDEO(s) & VISUAL(s) Tell the story in small „chapters‟ VIDEO(s) & VISUAL(s) And even smaller “sound bites” Give them a Story they can tell to others. the 3. $$ Value is a negative driver ! UNIQUE It‟s about THEM EXCLUSIVE And what is important to “Them” FIRST Make sure it is … BUZZWORTHY the 4.It‟s a daily/hourly effort … SOCIAL MEDIA It‟s a conversation … UPDATES, BLOGS, NEWS Provide Value, and Talking Points RE-POST, TWEETable It‟s about … for their network VALIDATION & EVIDENCE
    58. 58. Crafting a Successful Crowdfunding Campaign
    59. 59. Some initial rules ….
    60. 60. 1. Crowdfunding takes work, new skills. 2. It takes a strategy, and preparation. 3. The rules are different. 4. You can’t just post and run … 5. It’s a public success or failure – that “stays on your resume” www.propelarizona.com WYNTK(what you need to know)
    61. 61. Components of a Crowdfunding Campaign
    62. 62.  Title & Short Description • (repeatable & compelling)  Long Description (“The Pitch”) • Make it a story … about “them”  Visuals: Video, Photos, Images  Team, Deliverables, Details  Perks & rewards  Funding Goals: Amount and Timeframe  Updates & SOCIAL MEDIA CAMPAIGN • Repeatable Messages • Daily “routine” • Traditional marketing too
    63. 63. Crafting the “Pitch”
    64. 64. First: Who What Why When … • The 3 Who’s: – Who are the donors? (affinity & passion) – Who is benefits? (the market) – Who are you? • The 3 Why’s – Why would your donors care? – Why does the market care? – Why are you the right team to do it?
    65. 65. First: Who What Why When … • What is your project & goal? – Understandable & Simple – Compelling & Intriguing – Repeatable & Memorable • How and When – How will you achieve your goal? Realistic? – When, after funding? When will I get my perks?
    66. 66. Other Tips • Tell a story • Make it about them • The History of the idea is intriguing • What is the Impact? – why is this important? • Try a FAQ • Call to action – get them involved!
    67. 67. Exercise – Craft the Pitch
    68. 68. Crafting your Pitch Title & Short Description •(repeatable & compelling) Long Description (“The Pitch”) •Make it a story … about “them” Visuals: Video, Photos, Images Team, Deliverables, Details Perks & rewards Funding Goals: Amount and Timeframe Updates & SOCIAL MEDIA CAMPAIGN •Repeatable Messages •Daily “routine” •Traditional marketing too Tell a story Make it about them The History of the idea is intriguing What is the Impact? Why is this important? Try a FAQ Call to action – get them involved! The 3 Who’s: Who are the donors? (affinity & passion) Who is benefits? (the market) Who are you? The 3 Why’s Why would your donors care? Why does the market care? Why are you the right team to do it? What is your project & goal? Understandable & Simple Compelling & Intriguing Repeatable & Memorable How and When How will you achieve your goal? Realistic? When, after funding? When will I get my perks?
    69. 69. Pitch Notes - 1 • Who (donors, market) • “Why” – the story • Impact (on the market) • Impact (on the donors)
    70. 70. Pitch Notes - 2 • Story, and History … • FAQ • Perk Ideas (what’s important to donors) • Calls to Action
    71. 71. Visuals
    72. 72. The Importance of Visual Media • 64% of successful campaigns in had pitch videos. • Campaigns with videos under 5 minutes were 25% more likely to reach their goal than those with videos that were longer. • Average campaign video length for campaigns was 3 min, 27 seconds. Campaigns that reach their goal are 16 seconds shorter. • On average, successful campaigns uploaded 6 media to their gallery. • http://blog.indiegogo.com/2013/01/12-insights-for-2012.html
    73. 73. Perks & Rewards
    74. 74. Directed by Patrick Million Executive Producer CJ Cornell a Patrick Million FILM American Grandmaster
    75. 75. Rewards Crowdfunding • Incentives & perks • Pre-Orders • Pre-Sumers • Market Validation
    76. 76. Rewards don’t have to worth $$
    77. 77. • $25 perk is the single most claimed perk, representing nearly 25% of all perks that are selected. • While the $25 dollar perk is only responsible for raising 11% of total funds.
    78. 78. • $100 perks raise more money than any other perk price and make up nearly 30% of total funds. A $100 perk combined with the next three perk price points: $50, $500, and $1000 makes up about 70% of total money raised by perks
    79. 79. some Rules for Rewards
    80. 80. 1. Make perks unique & exclusive Avoid T-shirts, Mugs & Hugs
    81. 81. 2. Target them
    82. 82. 3. Give them a connection
    83. 83. “The Cocktail Party Effect”
    84. 84. “The Restaurant Effect”
    85. 85. “The Carey School Effect”
    86. 86. The less tangible the perk, the more public (visible) & EXCLUSIVE it needs to be.
    87. 87. The Campaign
    88. 88. How much $$ ? How long?
    89. 89. Discussion • How much should we raise? – Have you raised money before? Return? – Do you/did you work at a highly visible position? – *** Your social network? Large? Followers? – Idea - big market? How unique? – How much (marketing) work will you do?
    90. 90. HOW to Crowdfund? PUSH - Running the campaign • Social Media • Comments & Updates • Networking • Personal Pitches
    91. 91. Your mission: To get them talking about your project
    92. 92. Now that you’ve launched … Continue the story
    93. 93. Social Engagement – Transparency & Trust – Social Proof & Viral FX – Engagement & “The Fundamentals” – Twitter – Facebook – Blogging
    94. 94. most successful projects receive about 25-40% of their revenue from their first, second and third degree of connections. This could include friends, family, work acquaintances, or anyone that the owner is connected to. • http://www.forbes.com/sites/tanyaprive/2012/11/27/what-is-crowdfunding-and-how-does-it-benefit-the-economy/
    95. 95. 1. Create: (of course) - A Facebook Account - A Twitter Account (for your campaign)
    96. 96. 2. Tweet & Post –Frequently –Uniquely –Personally
    97. 97. 3. Post Updates & Blog •About your progress •About the subject •About the industry •About the People
    98. 98. 4. Go 1-1 •Reply to comments •Retweet/Repost Your fans and donors are your most powerful advocates!
    99. 99. 5. Target, Measure & Adjust •Different Messages for different groups •Google, Hootsuite, others •Learn and Adjust focus
    100. 100. Metrics http://www.perlsteinlab.com/blog/anatomy-of-a-crowdfund-week-3-slow-and-steady
    101. 101. Metrics http://www.perlsteinlab.com/blog/anatomy-of-a-crowdfund-week-3-slow-and-steady
    102. 102. the importance of google analytics to track and improve performance • + perks from fivvr • • http://www.perlsteinlab.com/blog/anatomy-of-a-crowdfund-week-3-slow-and- steady
    103. 103. Campaign Checklist Social Media Create a schedule 2-5x / week Use an automated tool Eg Hootsuite Post interesting info – Not just pleas for money Not just updates Vary your targets Call to action 1/3-1/2 time Use analytics and other metrics Traditional Marketing Pitch Events Press Releases Demos Testamonials Use an automated tool What to Communicate: 1. Your Progress 2. Successes, Evidence of success 3. Ammunition for your supporters 4. Industry Info, Factoids 5. People Info Plan, Schedule & Update Your Social Network is a Force Multiplier – but you have to give them help.
    104. 104. Success Factors
    105. 105. http://online.wsj.com/article/SB100008723963904438558045776010130940 84438.html?mod=googlenews_wsj#articleTabs%3Darticle
    106. 106. http://www.indiegogo.com/blog/2012/05/indiegogo-insight-campaigns-that-take-these-six-actions-raise-8-times-more- money-than-campaigns-that-dont.html
    107. 107. http://www.indiegogo.com/blog/2012/05/indiegogo-insight-campaigns-that-take-these-six-actions-raise-8-times-more- money-than-campaigns-that-dont.html
    108. 108. http://www.indiegogo.com/blog/2012/07/indiegogo-insight-winning-the-middle-game.html
    109. 109. successful campaigns raise, on average, 49% percent of their goals during the first and last 10% of the campaign length.
    110. 110. The most important secret is …
    111. 111. Showing Momentum (the perception of momentum)
    112. 112. The most obvious secret is …
    113. 113. Credibility = trust, competence & follow-through
    114. 114. www.propelarizona.com Crowdfunding Entrepreneurship & Innovation Arizona Economic Growth
    115. 115. Practical Crowdfunding Workshop www.propelarizona.com @PropelArizona Slideshare/PropelArizona
    116. 116. days Crowdfunding is measured in …
    117. 117. Entrepreneurship
    118. 118. Crowdfunding Arizona Can it jumpstart entrepreneurship?
    119. 119. 1. Kickstarter “Fails” Arizona does poorly …
    120. 120. 2. Members =/ Supporters % of supporters is the key ….
    121. 121. 3. Entrepreneurship is Different Products, Companies, Entrepreneurs …
    122. 122. 4. The role of “Ecosystem” Incubators, accelerators, mentors etc ..
    123. 123. 5. The power of Community Shared Goals, Passions, Outcomes …
    124. 124. Shared Goals, Passions, Outcomes …
    125. 125. Crowdfunding for Entrepreneurship & Economic Growth Shared Goals, Passions, Outcomes …
    126. 126. People as Important as Projects … Organizations & Affiliations …
    127. 127. Entrepreneurs success as much as funding …
    128. 128. $15k - $100k *(Average $50k) ….
    129. 129. Crowdfunding for Entrepreneurship & Economic Growth
    130. 130. www.PropelArizona.com Slideshare/PropelArizona @PropelArizona cj@PropelArizona.com
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