10 Guidelines for Crowd-Funding     Your Creative Projects       Saturday, 23 March 2013       simon@lgcldesigns.com   @lg...
What is it?• 2 types = Investment and Rewards Based• Basically it’s smaller money put into a larger central  pot
Top Crowdfunding Sites• US based• Our focus is on Rewards Based
Chinese Crowdfunding• Still immature• Chinese culture not yet ready to embrace   – Skepticism, trust   – Quality of projec...
Rewards Based Crowdfunding• Rewards Based pools money from the crowd to a  single large pot that creators use to make or d...
Why is it Important to Me?
Great Idea! But How to Make it Real?• Ideas are commodities. Execution is not. – Michael  Dell• Crowdfunding leverages you...
Strength in Numbers• What the individual cannot do, a  focused group can• Instead of asking 1 investor for  $10,000, ask 1...
Community + Connection• Not a one way brand to consumer relationship• The fan / patron / backer is invested in the result•...
Power to Challenge Giants• Here are some examples
Ouya : Android Game Console• Potentially bigger, more agile than Playstation, Xbox,  or Wii• Brings the viral, low cost ga...
Pebble : E-Ink Connected Watch• A better smart watch than Sony’s• Validated the market potential and made Pebble a  househ...
And Who the Hell Are You?
Simon Kwan + Ed Dean• Designer from the US• Entrepreneur and startup veteran from the UK
Experienced Backer•   Backed 50 projects so far in categories:•   Games•   Theatre•   Films•   Technology•   Fashion•   pr...
PodKit Watch• Lessons learned:• Too late in the life cycle of iPod Nano• Too niche a target marketn (pocket watches vs wri...
X-Wing Squadron• Joke campaign has raised more than ½ million dollars• Viral element led to publicity
SIMPLcase iPhone 5• Focused on solving a problem• Minimized risk and lowered funding goal• Received several reseller inqui...
SIMPLcase iPhone 4• Received more than 220 written requests for iPhone  4 version during our iPhone 5 version campaign
Media Attention Builds Brand Recognition• By the time we approach retailers, we will have  established some brand recognit...
Lessons Learned
Offer Something People Actually Want• A gold turd is still a turd• Solve problems• Inspire play
2. Get Feedback Before You Go Public• Trust your advisors to provide help you examine  every detail of your plan
3. Backers are NOT the Same as Customers• Most brands spend years trying to capture and retain  evangelical customers• Bac...
4. Watch Your Overheads!• Costs of production• Wholesale, resale, margins, markups, discounts• Logistics, marketing, packa...
5. Pricing Strategy•   How much do you need to succeed?•   What are backers willing to spend?•   Tiered Rewards Levels•   ...
6. Marketing Strategy•   Good Content•   Social Influence•   Mass Media•   Parnerships
7. Trust & Authenticity•   Be as transparent as possible•   Don’t cover up mistakes•   Be humble, be honest•   Trust that ...
8. Community• Kicking it Forward• Supporting other Creators• Asking your backers to spread  the word
9. Analyze & Revise!• KickTraq• BitLy• Analytics
10. Communicate & Engage• Silence is bad           Help Me,• Regularly update your backers                           Help ...
Crowdfunding is the Future• Creating new jobs• Enabling independence from  long held corporate paradigms• Disrupting the s...
Thank You!Saturday, 23 March 2013simon@lgcldesigns.com   @lgcldesigns
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10 crowdfunding guidelines techyizu bar camp - 230313revised

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10 crowdfunding lessons I learned from my Kickstarter campaign for SIMPLcase and X-Wing. Presented at Techyizu Bar Camp in Shanghai on March 23, 2013.

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  • 2 types = Investment and Rewards BasedBasically it’s smaller money put into a larger central pot
  • US basedOur focus is on Rewards Based
  • Still immatureChinese culture not yet ready to embraceSkepticism, trustQuality of projectsGrey areas of laws concerning taxes
  • Rewards Based pools money from the crowd to a single large pot that creators use to make or do somethingReward investment : donate money, receive a tangible reward – not just a thank you but something physical and relevant to the project – this is NOT charity
  • Ideas are commodities. Execution is not. – Michael DellCrowdfunding leverages your idea to give you the capital to execute
  • What the individual cannot do, a focused group canInstead of asking 1 investor for $10,000, ask 1000 people for $10 each
  • Not a one way brand to consumer relationshipThe fan / patron / backer is invested in the resultThe creator is not alone and has help
  • Here are some examples
  • Potentially bigger, more agile thanPlaystation, Xbox, or WiiBrings the viral, low cost game development model of mobile gaming to console gaming
  • A better smart watch than Sony’sValidated the market potential and made Pebble a household name brand in less than 60 daysBackers told them what features they wanted
  • Designer from the USEntrepreneur and startup veteran from the UK
  • Backed 50 projects so far in categories:GamesTheatreFilmsTechnologyFashionproduct designarts
  • Lessons learned:Too late in the life cycle of iPod NanoToo niche a target marketn (pocket watches vs wrist watches)Asked for too much moneyConfused people by having multiple main items (case + analog watch module)No social media presence (didn’t even have a Twitter account)
  • Joke campaign has raised more than ½ million dollarsViral element led to publicity
  • Focused on solving a problemMinimized risk and lowered funding goalReceived several reseller inquiries and requests for product samples to review
  • Received more than 220 written requests for iPhone 4 version during our iPhone 5 version campaign
  • By the time we approach retailers, we will have established some brand recognition and validation for the product
  • A gold turd is still a turdSolve problemsInspire play
  • Trust your advisors to help you examine every detail of your plan
  • Most brands spend years trying to capture and retain evangelical customersBackers by definition are early adopters, fans, and have the potential to be your evangelists
  • Costs of productionWholesale, resale, margins, markups, discountsLogistics, marketing, packaging
  • How much do you need to succeed?What are backers willing to spend?Tiered Rewards LevelsHigh value Rewards
  • Good ContentSocial InfluenceMass MediaPartnerships
  • Be as transparent as possibleDon’t cover up mistakesBe humble, be honestTrust that your Backers are as invested as you are
  • Kicking it ForwardSupporting other CreatorsAsking your backers to spread the word
  • Campaigns are living things – learn & adaptKickTraqBitLyAnalytics
  • Silence is badRegularly update your backersPromote others and they’ll promote youRelationships take time to build
  • Crowdfunding can and should be considered as a business strategy or at the very least a tactical tool
  • 10 crowdfunding guidelines techyizu bar camp - 230313revised

    1. 10 Guidelines for Crowd-Funding Your Creative Projects Saturday, 23 March 2013 simon@lgcldesigns.com @lgcldesigns
    2. What is it?• 2 types = Investment and Rewards Based• Basically it’s smaller money put into a larger central pot
    3. Top Crowdfunding Sites• US based• Our focus is on Rewards Based
    4. Chinese Crowdfunding• Still immature• Chinese culture not yet ready to embrace – Skepticism, trust – Quality of projects – Grey areas of laws concerning taxes
    5. Rewards Based Crowdfunding• Rewards Based pools money from the crowd to a single large pot that creators use to make or do something• Reward investment : donate money, receive a tangible reward – not just a thank you but something physical and relevant to the project – this is NOT charity
    6. Why is it Important to Me?
    7. Great Idea! But How to Make it Real?• Ideas are commodities. Execution is not. – Michael Dell• Crowdfunding leverages your idea to give you the capital to execute
    8. Strength in Numbers• What the individual cannot do, a focused group can• Instead of asking 1 investor for $10,000, ask 1000 people for $10 each
    9. Community + Connection• Not a one way brand to consumer relationship• The fan / patron / backer is invested in the result• The creator is not alone and has help
    10. Power to Challenge Giants• Here are some examples
    11. Ouya : Android Game Console• Potentially bigger, more agile than Playstation, Xbox, or Wii• Brings the viral, low cost game development model of mobile gaming to console gaming
    12. Pebble : E-Ink Connected Watch• A better smart watch than Sony’s• Validated the market potential and made Pebble a household name brand in less than 60 days• Backers told them what features they wanted
    13. And Who the Hell Are You?
    14. Simon Kwan + Ed Dean• Designer from the US• Entrepreneur and startup veteran from the UK
    15. Experienced Backer• Backed 50 projects so far in categories:• Games• Theatre• Films• Technology• Fashion• product design• arts
    16. PodKit Watch• Lessons learned:• Too late in the life cycle of iPod Nano• Too niche a target marketn (pocket watches vs wrist watches)• Asked for too much money• Confused people by having multiple main items (case + analog watch module)• No social media presence (didn’t even have a Twitter account)
    17. X-Wing Squadron• Joke campaign has raised more than ½ million dollars• Viral element led to publicity
    18. SIMPLcase iPhone 5• Focused on solving a problem• Minimized risk and lowered funding goal• Received several reseller inquiries and requests for product samples to review
    19. SIMPLcase iPhone 4• Received more than 220 written requests for iPhone 4 version during our iPhone 5 version campaign
    20. Media Attention Builds Brand Recognition• By the time we approach retailers, we will have established some brand recognition and validation for the product
    21. Lessons Learned
    22. Offer Something People Actually Want• A gold turd is still a turd• Solve problems• Inspire play
    23. 2. Get Feedback Before You Go Public• Trust your advisors to provide help you examine every detail of your plan
    24. 3. Backers are NOT the Same as Customers• Most brands spend years trying to capture and retain evangelical customers• Backers by definition are early adopters, fans, and have the potential to be your evangelists
    25. 4. Watch Your Overheads!• Costs of production• Wholesale, resale, margins, markups, discounts• Logistics, marketing, packaging
    26. 5. Pricing Strategy• How much do you need to succeed?• What are backers willing to spend?• Tiered Rewards Levels• High value Rewards
    27. 6. Marketing Strategy• Good Content• Social Influence• Mass Media• Parnerships
    28. 7. Trust & Authenticity• Be as transparent as possible• Don’t cover up mistakes• Be humble, be honest• Trust that your Backers are as invested as you are
    29. 8. Community• Kicking it Forward• Supporting other Creators• Asking your backers to spread the word
    30. 9. Analyze & Revise!• KickTraq• BitLy• Analytics
    31. 10. Communicate & Engage• Silence is bad Help Me,• Regularly update your backers Help You!• Promote others and they’ll promote you• Relationships take time to build
    32. Crowdfunding is the Future• Creating new jobs• Enabling independence from long held corporate paradigms• Disrupting the status quo
    33. Thank You!Saturday, 23 March 2013simon@lgcldesigns.com @lgcldesigns

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