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consulting – strategy - research social media at work Crowdfunding Workshop 28/6/11 IA Centre, Skypark, Glasgow twintangibles 2011 Contact us +44(0)7717714595 www.twintangibles.co.uk email@example.com
The Long Tail "We sold more books today that didnt sell at all yesterday than we sold today of all the books that did sell yesterday." Josh Peterson - AmazonPopularity Products
What is Crowdfunding?“The collective cooperation, attention and trust by people who network and pool their money and other resources together, usually via the internet to support efforts initiated by other people or organizations.”
3 Crowdfunding Models• Reward based Crowdfunding• Equity based Crowdfunding• Microfinance Lending (P2P-lending)
2 Further Flavours• ll or nothing A Meet your target or you receive nothing• eep it all K Retain any funding generated regardless of target
Decide on Collect Project and Funds Target Target, DecideLaunch, RewardsPromote and Duration Choose Platform and SM tools
Collect Select Reward Project PurchaseTarget your Met Reward Promote The Project
• Key characteristics o Microfinance – low barriers, larger tribe o Rewards – its not just equity o Targets – Defined goals o Time limited – Defined end point o Viral promotion – Incentive to spread the word o Project based – Rarely operating costs
Where is it used?• Charities• Creatives• VC’s• Entrepreneurs• Micro lending• Campaigning
Example 2 • 10% Firms Equity • £230 per share • 1300 investors • 20% off in the shop! • No platform• irst time any company in Europe had attempted Fto raise money via an online share offering• ignificant expense in setting up project S• E helped them with part of the costs S
Crowdfunding Tools• Crowdfunding platforms• ProjectFinder• Facebook Causes• Chip In• Six Degrees• Just Giving
Why use a Platform?• Turnkey solution• Meeting place for investors/donors• Inbuilt community• Reduce transaction cost• Social Media Integrated• Reduces legislative complexity
Characteristics• Sector specific: creative, entrepreneurial, community…• Country limitations• Traffic• Min./Max. total of contribution• Service and/or payment Fee• Rewards/Perks: set by platform/project holder• Time limit
Project Example 3: TikToc LunaTik $15,000 Goal Average donation $70 6 Reward Categories
Some Numbers• Kickstarter – About 43% of initiatives are successfully funded. – In the two years since Kickstarters launch, close to 592,000 people have helped to back more than 7,500 successful projects• Kiva – has collected $211 million for worldwide projects. – Nearly 550,000 entrepreneurs have received loans. – The repayment rate is 99%.
Keys for Success• Be Social Media ready• Check how Social Media ready your audience is• Set an achievable target• Create a powerful pitch• Reward people• Spread the word• Say thank you• Be Human = Be Social
Keys to Success• Have a strategy – You need a plan• Select your project carefully – It must be realistic & achievable• Identify your target audience/s• Select your platform carefully• Develop your rewards – More is better, be creative• Create your pitch – Stories, passion & video• Select your channels – They vary• Develop a publishing plan – What resources can you draw on• Define the resource required – Who will do this, & when. A team?• Set a time frame – Even if the platform is open time give your self one• Engage – Listen, nurture, converse, respond• Give your funders privileged access to information• Promote – Don’t assume that people know• Keep updating• Honour your promises• Say thank you!
Intangibles• Organisational Capital• Human Capital• Relationship Capital