How to Plan for and Execute a Successful Crowdfunding Campaign

5,766 views
5,503 views

Published on

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.

Published in: Technology
1 Comment
9 Likes
Statistics
Notes
  • Being a newbie to crowdfunding, your information was highly useful and practical. I liked the fact that it had depth which made it so much more useful to me. I am planning to incorporate many of your guidelines in my own campaign. Thanks for your effort
    Charles
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
No Downloads
Views
Total views
5,766
On SlideShare
0
From Embeds
0
Number of Embeds
618
Actions
Shares
0
Downloads
86
Comments
1
Likes
9
Embeds 0
No embeds

No notes for slide

How to Plan for and Execute a Successful Crowdfunding Campaign

  1. 1. CROWDFUNDING 101 NEWBURYPORT CHAMBER FEBRUARY 20, 2014 Julia Claire Campbell - @JuliaCSocial J Campbell Social Marketing www.jcsocialmarketing.com
  2. 2. 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
  3. 3. 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
  4. 4. 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/crowdfu nding-statistics
  5. 5. 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/crowdfu nding-statistics
  6. 6. 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/crowdfundin g-statistics
  7. 7. Benefits of Crowdfunding    Less overhead in staff time, processing. Potential reach. Social media, email, peer-topeer. 24/7 access via online donation platforms; Required in our always-on, tech-reliant world.
  8. 8. 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.
  9. 9. Challenges of Crowdfunding    Planning is more important than implementation . Tools can be confusing. If you build it, they will come… not true.
  10. 10. 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.
  11. 11. So how to do it? Three main steps: 1) Planning 2) Marketing 3) Follow up
  12. 12. Planning Is Key!
  13. 13. Teamwork Is Key!
  14. 14. 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/onlinef undraisinghub.htm
  15. 15. 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?
  16. 16. 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.
  17. 17. Planning Screening Room Digital Fund Transition to digital projection Future: Ensuring the continued maintenance of the theater’s equipment https://www.kickstarter.com/projects/andrewmun go/screening-room-digital-fund
  18. 18. 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 – tshirts, tickets, exclusive access, signed books. Must be “products and experiences” not cash.
  19. 19. Planning Rewards Seth Godin – self-published his book https://www.kickstarter.com/projects/297519465/ the-icarus-deception-why-make-art-newfrom-seth-go Projecto – Instagram projector https://www.kickstarter.com/projects/120957879 9/projecteo-the-tiny-instagram-projector
  20. 20. Planning 5) Instill urgency.
  21. 21. Planning Urgency http://www.indiegogo.com/projects/aidafghanistan-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.”
  22. 22. Planning 6) Be brief.
  23. 23. Planning In 300-500 words, be able to describe: The PROBLEM The WHY NOW The 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?
  24. 24. Planning
  25. 25. Planning 7) Use video.
  26. 26. Planning Video https://www.kickstarter.com/projects/1960547 513/save-cinemasalem https://www.kickstarter.com/projects/1776324 009/brck-your-backup-generator-for-theinternet https://www.kickstarter.com/projects/cesarku riyama/1-second-everyday-app
  27. 27. 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.
  28. 28. Planning 9) Find the right tool.          Kickstarter Fundable Crowdfunder Indiegogo RocketHub Crowdrise Read the guidelines! Look at the fees involved. Explore.
  29. 29. Marketing 10) Press publish!  Video  Brief description  Links  Email  Social media share buttons
  30. 30. Marketing Low hanging fruit first!
  31. 31. 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.
  32. 32. Marketing Sharing is caring!
  33. 33. Marketing Start with email.  Use your network.  Personal emails work best.  Offer different ways to help – small donations, spreading the word, sharing it, retweeting
  34. 34. 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!
  35. 35. Follow Up Build relationships.
  36. 36. Follow Up Keep people updated on progress.
  37. 37. 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!”
  38. 38. Follow Up Share successes!
  39. 39. 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.
  40. 40. If these guys could do it… Griz Coat: https://www.kickstarter.com/projects/hansr/gri z-coat Bug-A-Salt: http://bugasalt.com/ Cat Café: http://www.indiegogo.com/projects/open-acat-cafe-in-london Pizza Museum: https://www.kickstarter.com/projects/2023690 459/pizza-brain-the-worlds-first-pizzamuseum-and-rest
  41. 41. 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.
  42. 42. Resources Harness The Crowd – www.harnessthecrowd.com – free e-book and other resources The Crowd Café – www.thecrowdcafe.com Crowdmapped.com Smallknot.com – for local businesses (not in Boston area, but coming soon)
  43. 43. Thank you!      If you liked this presentation, please Like my Facebook Page:  www.facebook.com/jcsocialmarketing Twitter: @JuliaCSocial Blog: www.jcsocialmarketing.com Email: julia@jcsocialmarketing.com Slides will be on SlideShare: www.slideshare.com/juliagulia77

×