GETSTARTED.PHStart your projects now!A GUIDE ON CROWDFUNDINGGetStarted.ph is owned, managed, and operated bySTARTNOW.PH IN...
STARTNOW.PH INC. | Ideas + Resources Page 2 of 14FOREWORDWe are happy to have you with us. We believe that ourpaths led to...
STARTNOW.PH INC. | Ideas + Resources Page 3 of 14TABLE OF CONTENTSI. Introduction to Crowdfundinga. Crowdfunding Basicsi. ...
STARTNOW.PH INC. | Ideas + Resources Page 4 of 14I.INTRODUCTION TO CROWDFUNDINGCrowdfunding BasicsCrowdfunding is a way of...
STARTNOW.PH INC. | Ideas + Resources Page 5 of 14With this amazing and powerful tool, we at GetStartedare committed and de...
STARTNOW.PH INC. | Ideas + Resources Page 6 of 14The CampaignersThe Campaigners are the people who have projects thatneed ...
STARTNOW.PH INC. | Ideas + Resources Page 7 of 14projects will likely succeed. We find this prudent, economical, andwise.I...
STARTNOW.PH INC. | Ideas + Resources Page 8 of 14We constantly monitor GetStarted for any suspicious orfraudulent activiti...
STARTNOW.PH INC. | Ideas + Resources Page 9 of 14After the lapse of the campaign period, the campaignproject will only be ...
STARTNOW.PH INC. | Ideas + Resources Page 10 of 14First, do an extensive research about your project. Learneverything ther...
STARTNOW.PH INC. | Ideas + Resources Page 11 of 14Building TrustTrust is of utmost importance on the Internet. We allhave ...
STARTNOW.PH INC. | Ideas + Resources Page 12 of 14If there are relevant supervening events with respect tohis project, the...
STARTNOW.PH INC. | Ideas + Resources Page 13 of 14thus, important to have draft various letters for different personsdepen...
STARTNOW.PH INC. | Ideas + Resources Page 14 of 14getstarted.ph/contact. We are here ready, willing, and able tohelp you.T...
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Guide on Crowdfunding

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This is a guide on how to successfully crowdfund a project.

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Transcript of "Guide on Crowdfunding"

  1. 1. GETSTARTED.PHStart your projects now!A GUIDE ON CROWDFUNDINGGetStarted.ph is owned, managed, and operated bySTARTNOW.PH INC.Ideas + Resources
  2. 2. STARTNOW.PH INC. | Ideas + Resources Page 2 of 14FOREWORDWe are happy to have you with us. We believe that ourpaths led to one another for a reason. We may not know theexact reason, but we believe that is for a good one.For some time know, we have been looking for ways tohelp and assist individuals and organizations with their activitiesor events. We always find ourselves facing the problem onfunding. It has, thus, led us to find creative and innovative waysto source funds. In our search, we stumbled upon a very powerfuland amazing tool called crowdfunding.We, thus, exerted considerable time, energy, andresources to learning more about this technology. With the kindand generous help of family and friends, we were able to developour own crowdfunding platform.We are, thus, proud to present to you GETSTARTED.PH sothat you can start your projects now!Thank you very much.Sincerely yours,(sgd.) JERICHO B. DEL PUERTOChairman & PresidentSTARTNOW.PH INC.Ideas + Resources
  3. 3. STARTNOW.PH INC. | Ideas + Resources Page 3 of 14TABLE OF CONTENTSI. Introduction to Crowdfundinga. Crowdfunding Basicsi. Community of Trustb. Key Playersi. Campaignersii. Backersiii. CF Platform Teamc. Project and Campaign Projecti. What is a project?ii. What is a campaign project?iii. Project GuidelinesII. Best Practicesa. Building Trustb. Practicing Responsibility, Accountability, &Transparencyc. Networking & Marketing Your CampaignIII. Conclusion
  4. 4. STARTNOW.PH INC. | Ideas + Resources Page 4 of 14I.INTRODUCTION TO CROWDFUNDINGCrowdfunding BasicsCrowdfunding is a way of raising funds for a project byseeking contributions from a large group of people. The term“crowdfunding” is of recent creation. However, the conceptbehind it dates back to history. Whenever a person seeks thefinancial assistance of several people for the completion of aproject, s/he is engaged in crowdfunding. For instance, theinstallation of the Statue of Liberty in New York pushed throughafter Mr. Joseph Pulitzer (newspaper publisher of The World)raised over $100,000 from the American people during his sixmonths campaign.iThe project was nearly canceled by theAmerican Committee for the Statue of Liberty after it ran out offunds.Nowadays, when the term “crowfunding” is used, it oftenrefers to a method of soliciting contributions for a projectthrough the use of a crowdfunding platform on the Internet. Thisway, the campaigner will be able to extend his/her reach topeople outside his network and he/she will be able to receivefinancial support even from backers outside his/her country.According to massolution’s Crowdfunding IndustryReport, an estimated amount of “$1.5 billion was raised bycrowdfunding platforms worldwide in 2011.iiThis amount hashelped launch various creative, innovative, and inspiring projectsworldwide. They include art shows, music concerts, designinnovations, community support for people with rare diseases,and a whole lot more.
  5. 5. STARTNOW.PH INC. | Ideas + Resources Page 5 of 14With this amazing and powerful tool, we at GetStartedare committed and determined to building a great crowdfundingcommunity here in the Philippines. We know that a lot of peoplewith creative, innovative, and inspiring projects will benefit fromthis technology.Community of TrustTrust is one of the cornerstones of a great crowdfundingcommunity. When Campaigners are responsible, accountable,and transparent with their dealings, Backers are more likely tosupport their creative, innovative, and inspiring projects.Hence, we are dedicated and committed in makingGetStarted a secure and trustworthy environment for you. Restassured that we are exerting our best efforts to building,preserving, and protecting this community of trust.In the event that we find reasonable grounds to believethat a campaign or an activity is fraudulent or violates our TOS,we will not hesitate to impose the proper sanctions in order toprotect this community.Key PlayersThere are three (3) important key players in acrowdfunding community. They are: the Campaigners, theBackers, and the crowdfunding platform team.
  6. 6. STARTNOW.PH INC. | Ideas + Resources Page 6 of 14The CampaignersThe Campaigners are the people who have projects thatneed funding. Consequently, they resort to crowdfunding as aviable way to raise their needed funds. They set up a campaignproject page detailing their project, their target fund goal, andhow they intend to use the contributions raised.To launch a successful campaign, the Campaigners mustbe able to build trust. Thus, they must be able to properlyintroduce themselves so that prospective backers will know whothey are supporting. According to a research study by Kickstarter,campaigns with videos showing the Campaigners are more likelyto succeed (50% v. 30%).iiiIn addition, the Campaigners must be able to explainwhat qualifications they have in order to show that they cancomplete the project. The Backers will more likely supportprojects which they believe are run by qualified people.In exchange for the financial support, the Campaignersgive rewards to their Backers. The reward may take severalforms. However, we highly recommend that it be a derivative ofthe project. For instance, if the project is for the creation of amusic album, the reward may take the form of a CD/DVD/digitalcopy of the music album to be freely given to the Backer.At GetStarted, the campaign will only be considered asuccess and the Campaigners will only be able to receive thefunds that they have raised only if their target goal was met. Thatis to say, the target goal must be met or exceeded on/before thecampaign deadline. We are for the success of a project.Therefore, we are of the opinion that only properly funded
  7. 7. STARTNOW.PH INC. | Ideas + Resources Page 7 of 14projects will likely succeed. We find this prudent, economical, andwise.If a Campaign is successful, GetStarted will be collectingthe pledges from the Backers. Thereafter, a 5% service fee will bededucted by GetStarted prior to delivering the amount to theCampaigners through Paypal or bank deposit.ivThe BackersThe Backers are the ones who financially support aproject. They do so by pledging the amount they’ll becontributing on the campaign project page. Their pledged amountwill only be collected if the campaign is a success. That is to say,Backers will only be made to contribute if the project reached itstarget funding goal on/before the campaign deadline.If a campaign is a success, the pledged amount will bededucted from their paypal or credit card accounts throughGetStarted’s payment gateways. Should they have elected tocontribute through bank deposit, the bank details ofSTARTNOW.PH INC. (which owns, manages, and operatesGetStarted) will be sent to them.The CF Platform TeamThat would be us. We at GetStarted are exerting our bestefforts to making our community site a safe and secure place forcrowdfunding activities.
  8. 8. STARTNOW.PH INC. | Ideas + Resources Page 8 of 14We constantly monitor GetStarted for any suspicious orfraudulent activities. In the event that we find reasonablegrounds to believe that an activity is fraudulent or violates ourTOS, we will swiftly respond with the proper action.Project and Campaign ProjectWhat is a project?A project is one that hat has a definite and tangible resultor output. The following are examples of projects: cleanup ofManila Bay, music album recording, or theatrical production. Allof them have definite and tangible result or output.A project cannot be indefinite or not tangible. To be clear,a project cannot have a forever for a deadline. Neither can aproject be about metaphysical creations.We are liberal in our policy concerning projects. So longas they comply with our Guidelines and Terms of Service, they arelikely to be approved.Campaign projectA campaign project is that task of a Campaigner to rallysupport for his/her project. It begins with submitting a campaignproject page, including his/her preferred campaign period (howmany days to rally support), for review by GetStarted. Afterapproval, the Campaigner will, as he is aptly called, campaign forthe support of his project within his/her chosen period tocampaign.
  9. 9. STARTNOW.PH INC. | Ideas + Resources Page 9 of 14After the lapse of the campaign period, the campaignproject will only be considered a success if it has received at leastits target funding goal on/before the deadline for his/hercampaign.Project GuidelinesGetStarted only allows projects to be crowdfunded. Thatis to say, persons or organizations themselves cannot becrowdfunded.There are, however, certain projects that we do notallow, such as those related to alcohol, tobacco, gambling, andprohibited or dangerous drugs. To view a complete list ofrestrictions, please visit our Guidelines page atgetstarted.ph/guidelines.II.BEST PRACTICESPreparing to succeedThe adage failing to prepare is preparing to fail findsapplication in a campaign project. Those who lacked preparationare likely to fail with their campaign. As such, it is very importantto conduct due diligence before launching a campaign.We recommend following five (5) steps to follow in orderto properly prepare for a campaign project:
  10. 10. STARTNOW.PH INC. | Ideas + Resources Page 10 of 14First, do an extensive research about your project. Learneverything there is to know so that you can later on answerquestions from your prospective backers. If you need to actuallygo out and make a canvass of costs for materials, please do so.Second, carefully plan your steps on how to successfullyexecute the project. Make sure that you have enough time,manpower, and resources to complete it. This plan will serve asyour rough draft for your campaign project page.Third, come up with a budget for the costs that you willbe incurring for making the rewards and another one for theproject itself. Often times, people are likely to budget only for therewards or the project. This is a big mistake and it will result inshortage of funds. You must note that you cannot anymore seekadditional solicitation after the end of your campaign. So, planwell your costs.Fourth, ask for comments from other people about yourproject, campaign plan, and rewards. This level of peer review willpoint out any areas that you may have overlooked. Likewise, thiscan yield valuable insights as to how you can accomplish yourproject faster, easier, and better.Fifth, draft your campaign project page in a blank piece ofpaper. It will help if you make a flowchart to visualize the process.Then, you can write the steps that you will do to complete it.Before hitting on the “Submit Campaign” button, please makesure to review first your work. If your project complies with ourGuidelines and Terms of Service, you are now good to go.
  11. 11. STARTNOW.PH INC. | Ideas + Resources Page 11 of 14Building TrustTrust is of utmost importance on the Internet. We allhave heard or encountered various and numerous scams on theNet. It is, thus, crucial for a Campaigner to take these into seriousconsideration when he develops his campaign project page.To establish a solid trust with Backers, a Campaignershould have a short, relevant, and accurate biography. Thus, it ishighly recommended that his biography should have links tohis/her social networks (e.g. Facebook, Twitter, etc.) and personalwebsite, if any. Should Backers want to check your identityonline, they will be able to find you there.Moreover, a Campaigner’s campaign project page shouldinclude information as to his qualifications for launching theproject. He/she should be able to properly explain as to howhe/she will be able to complete the project.All of these pieces of information will all be taken intoserious consideration by prospective Backers. Remember, theBackers will most likely support projects by Campaigners whothey trust. So, we advise Campaigners to build a strong biographythat will show that you are trustworthy.Being Responsible, Transparent, and AccountableOnce a campaign project page becomes live (i.e.approved), the Campaigner should constantly monitor his pagefor any inquiries or comments by prospective Backers. It becomeshis/her responsibility to respond to them.
  12. 12. STARTNOW.PH INC. | Ideas + Resources Page 12 of 14If there are relevant supervening events with respect tohis project, the Campaigner should make this information readilyavailable on his campaign project page through Project Updates.He can do so by simply accessing his campaign project page andclicking on Updates. Regular updates will provide the Campaignerthe opportunity to be transparent.Updating a campaign page is not the same with editing it.A Campaigner is allowed to edit his campaign page even if it isalready live. However, he/she should take care not tosubstantially or materially alter his project. Otherwise, Backerswho have already pledged may find his changes in bad taste. Itshould be noted that there are certain parts of the campaignpage that cannot be edited. For more information, please see ourFrequently Asked Questions at getstarted.ph/faq.After successfully campaigning funds for his project andthereafter receiving them, the Campaigner should be accountablefor the money that he/she received. He/she must give monthlyupdates for his projects until the same is completed. Please notethat any future project that you may have will depend on yourprevious one. So, it is crucial to be accountable for every projectthat you launch.Networking & Marketing Your Campaign ProjectDuring your campaign, your networking and marketingskills will be very much tested.Networking is all about relationships. If you want tosolicit from your family, you may choose to approach theminformally. However, this may not apply to your colleagues. It is,
  13. 13. STARTNOW.PH INC. | Ideas + Resources Page 13 of 14thus, important to have draft various letters for different personsdepending on how close they are to you. Here, you may want tomake different lists of people depending on the nature of yourrelationship with them (ex. family, HS friends, colleagues, etc.).A good marketing plan starts with a clear objective onyour desired objective. If you have a good campaign project page,you’ll find it easier to promote your project as your goals andobjectives are already clearly laid down.Remember, a really good project page will end upmarketing itself without any assistance from you.IV.CONCLUSIONCrowdfunding is a very powerful tool. Consequently, itshould be used with utmost care. After all, as it is said: with greatpowers, comes great responsibility! So, use it wisely.We at GetStarted are committed and determined tomake crowdfunding work in the Philippines. Hence, we will exertall our efforts to build a community of trust and security. Shouldwe find any suspicious or fraudulent activity, we will not hesitateto impose the proper sanctions – including cancelation of acampaign project or deletion of an account.In all, we hope that you have a safe, fun, and excitingcrowdfunding experience with us. We look forward to seeing yourprojects in our community. Should you have any question, pleasefeel free to ask us through our Contact Us form at
  14. 14. STARTNOW.PH INC. | Ideas + Resources Page 14 of 14getstarted.ph/contact. We are here ready, willing, and able tohelp you.Thank you.- - -iNational Park Service, “Joseph Pulitzer,” available athttp://www.nps.gov/stli/historyculture/joseph-pulitzer.htm, last acctessed 10 May 2013,7:27pm.iimassolution, “Crowdfunding Industry Report”, May 2012, Research Report, AbridgedVersion, available at http://www.crowdfunding.nl/wp-content/uploads/2012/05/92834651-Massolution-abridged-Crowd-Funding-Industry-Report1.pdf, last accessed 09 May 2013, 5:22pm. massolution is a unique research andadvisory firm specializing in the crowdsourcing and crowdfunding industries.iiiKickstarter, Creator Questions/FAQ, available athttp://www.kickstarter.com/help/faq/creator+questions?ref=footer, last accessed 09 May2013, 5:52pm.ivPlease refer to our Terms of Service located at http://getstarted.ph/terms-of-service.

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