1. GETSTARTED.PH
Start your projects now!
A GUIDE ON CROWDFUNDING
GetStarted.ph is owned, managed, and operated by
STARTNOW.PH INC.
Ideas + Resources
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FOREWORD
We are happy to have you with us. We believe that our
paths led to one another for a reason. We may not know the
exact reason, but we believe that is for a good one.
For some time know, we have been looking for ways to
help and assist individuals and organizations with their activities
or events. We always find ourselves facing the problem on
funding. It has, thus, led us to find creative and innovative ways
to source funds. In our search, we stumbled upon a very powerful
and amazing tool called crowdfunding.
We, thus, exerted considerable time, energy, and
resources to learning more about this technology. With the kind
and generous help of family and friends, we were able to develop
our own crowdfunding platform.
We are, thus, proud to present to you GETSTARTED.PH so
that you can start your projects now!
Thank you very much.
Sincerely yours,
(sgd.) JERICHO B. DEL PUERTO
Chairman & President
STARTNOW.PH INC.
Ideas + Resources
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TABLE OF CONTENTS
I. Introduction to Crowdfunding
a. Crowdfunding Basics
i. Community of Trust
b. Key Players
i. Campaigners
ii. Backers
iii. CF Platform Team
c. Project and Campaign Project
i. What is a project?
ii. What is a campaign project?
iii. Project Guidelines
II. Best Practices
a. Building Trust
b. Practicing Responsibility, Accountability, &
Transparency
c. Networking & Marketing Your Campaign
III. Conclusion
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I.
INTRODUCTION TO CROWDFUNDING
Crowdfunding Basics
Crowdfunding is a way of raising funds for a project by
seeking contributions from a large group of people. The term
“crowdfunding” is of recent creation. However, the concept
behind it dates back to history. Whenever a person seeks the
financial assistance of several people for the completion of a
project, s/he is engaged in crowdfunding. For instance, the
installation of the Statue of Liberty in New York pushed through
after Mr. Joseph Pulitzer (newspaper publisher of The World)
raised over $100,000 from the American people during his six
months campaign.i
The project was nearly canceled by the
American Committee for the Statue of Liberty after it ran out of
funds.
Nowadays, when the term “crowfunding” is used, it often
refers to a method of soliciting contributions for a project
through the use of a crowdfunding platform on the Internet. This
way, the campaigner will be able to extend his/her reach to
people outside his network and he/she will be able to receive
financial support even from backers outside his/her country.
According to massolution’s Crowdfunding Industry
Report, an estimated amount of “$1.5 billion was raised by
crowdfunding platforms worldwide in 2011.ii
This amount has
helped launch various creative, innovative, and inspiring projects
worldwide. They include art shows, music concerts, design
innovations, community support for people with rare diseases,
and a whole lot more.
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With this amazing and powerful tool, we at GetStarted
are committed and determined to building a great crowdfunding
community here in the Philippines. We know that a lot of people
with creative, innovative, and inspiring projects will benefit from
this technology.
Community of Trust
Trust is one of the cornerstones of a great crowdfunding
community. When Campaigners are responsible, accountable,
and transparent with their dealings, Backers are more likely to
support their creative, innovative, and inspiring projects.
Hence, we are dedicated and committed in making
GetStarted a secure and trustworthy environment for you. Rest
assured 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 believe
that a campaign or an activity is fraudulent or violates our TOS,
we will not hesitate to impose the proper sanctions in order to
protect this community.
Key Players
There are three (3) important key players in a
crowdfunding community. They are: the Campaigners, the
Backers, and the crowdfunding platform team.
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The Campaigners
The Campaigners are the people who have projects that
need funding. Consequently, they resort to crowdfunding as a
viable way to raise their needed funds. They set up a campaign
project page detailing their project, their target fund goal, and
how they intend to use the contributions raised.
To launch a successful campaign, the Campaigners must
be able to build trust. Thus, they must be able to properly
introduce themselves so that prospective backers will know who
they are supporting. According to a research study by Kickstarter,
campaigns with videos showing the Campaigners are more likely
to succeed (50% v. 30%).iii
In addition, the Campaigners must be able to explain
what qualifications they have in order to show that they can
complete the project. The Backers will more likely support
projects which they believe are run by qualified people.
In exchange for the financial support, the Campaigners
give rewards to their Backers. The reward may take several
forms. However, we highly recommend that it be a derivative of
the project. For instance, if the project is for the creation of a
music album, the reward may take the form of a CD/DVD/digital
copy of the music album to be freely given to the Backer.
At GetStarted, the campaign will only be considered a
success and the Campaigners will only be able to receive the
funds that they have raised only if their target goal was met. That
is to say, the target goal must be met or exceeded on/before the
campaign deadline. We are for the success of a project.
Therefore, we are of the opinion that only properly funded
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projects will likely succeed. We find this prudent, economical, and
wise.
If a Campaign is successful, GetStarted will be collecting
the pledges from the Backers. Thereafter, a 5% service fee will be
deducted by GetStarted prior to delivering the amount to the
Campaigners through Paypal or bank deposit.iv
The Backers
The Backers are the ones who financially support a
project. They do so by pledging the amount they’ll be
contributing on the campaign project page. Their pledged amount
will only be collected if the campaign is a success. That is to say,
Backers will only be made to contribute if the project reached its
target funding goal on/before the campaign deadline.
If a campaign is a success, the pledged amount will be
deducted from their paypal or credit card accounts through
GetStarted’s payment gateways. Should they have elected to
contribute through bank deposit, the bank details of
STARTNOW.PH INC. (which owns, manages, and operates
GetStarted) will be sent to them.
The CF Platform Team
That would be us. We at GetStarted are exerting our best
efforts to making our community site a safe and secure place for
crowdfunding activities.
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We constantly monitor GetStarted for any suspicious or
fraudulent activities. In the event that we find reasonable
grounds to believe that an activity is fraudulent or violates our
TOS, we will swiftly respond with the proper action.
Project and Campaign Project
What is a project?
A project is one that hat has a definite and tangible result
or output. The following are examples of projects: cleanup of
Manila Bay, music album recording, or theatrical production. All
of 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 a
project be about metaphysical creations.
We are liberal in our policy concerning projects. So long
as they comply with our Guidelines and Terms of Service, they are
likely to be approved.
Campaign project
A campaign project is that task of a Campaigner to rally
support for his/her project. It begins with submitting a campaign
project page, including his/her preferred campaign period (how
many days to rally support), for review by GetStarted. After
approval, the Campaigner will, as he is aptly called, campaign for
the support of his project within his/her chosen period to
campaign.
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After the lapse of the campaign period, the campaign
project will only be considered a success if it has received at least
its target funding goal on/before the deadline for his/her
campaign.
Project Guidelines
GetStarted only allows projects to be crowdfunded. That
is to say, persons or organizations themselves cannot be
crowdfunded.
There are, however, certain projects that we do not
allow, such as those related to alcohol, tobacco, gambling, and
prohibited or dangerous drugs. To view a complete list of
restrictions, please visit our Guidelines page at
getstarted.ph/guidelines.
II.
BEST PRACTICES
Preparing to succeed
The adage failing to prepare is preparing to fail finds
application in a campaign project. Those who lacked preparation
are likely to fail with their campaign. As such, it is very important
to conduct due diligence before launching a campaign.
We recommend following five (5) steps to follow in order
to properly prepare for a campaign project:
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First, do an extensive research about your project. Learn
everything there is to know so that you can later on answer
questions from your prospective backers. If you need to actually
go out and make a canvass of costs for materials, please do so.
Second, carefully plan your steps on how to successfully
execute the project. Make sure that you have enough time,
manpower, and resources to complete it. This plan will serve as
your rough draft for your campaign project page.
Third, come up with a budget for the costs that you will
be incurring for making the rewards and another one for the
project itself. Often times, people are likely to budget only for the
rewards or the project. This is a big mistake and it will result in
shortage of funds. You must note that you cannot anymore seek
additional solicitation after the end of your campaign. So, plan
well your costs.
Fourth, ask for comments from other people about your
project, campaign plan, and rewards. This level of peer review will
point out any areas that you may have overlooked. Likewise, this
can yield valuable insights as to how you can accomplish your
project faster, easier, and better.
Fifth, draft your campaign project page in a blank piece of
paper. 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 make
sure to review first your work. If your project complies with our
Guidelines and Terms of Service, you are now good to go.
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Building Trust
Trust is of utmost importance on the Internet. We all
have heard or encountered various and numerous scams on the
Net. It is, thus, crucial for a Campaigner to take these into serious
consideration when he develops his campaign project page.
To establish a solid trust with Backers, a Campaigner
should have a short, relevant, and accurate biography. Thus, it is
highly recommended that his biography should have links to
his/her social networks (e.g. Facebook, Twitter, etc.) and personal
website, if any. Should Backers want to check your identity
online, they will be able to find you there.
Moreover, a Campaigner’s campaign project page should
include information as to his qualifications for launching the
project. He/she should be able to properly explain as to how
he/she will be able to complete the project.
All of these pieces of information will all be taken into
serious consideration by prospective Backers. Remember, the
Backers will most likely support projects by Campaigners who
they trust. So, we advise Campaigners to build a strong biography
that will show that you are trustworthy.
Being Responsible, Transparent, and Accountable
Once a campaign project page becomes live (i.e.
approved), the Campaigner should constantly monitor his page
for any inquiries or comments by prospective Backers. It becomes
his/her responsibility to respond to them.
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If there are relevant supervening events with respect to
his project, the Campaigner should make this information readily
available on his campaign project page through Project Updates.
He can do so by simply accessing his campaign project page and
clicking on Updates. Regular updates will provide the Campaigner
the 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 is
already live. However, he/she should take care not to
substantially or materially alter his project. Otherwise, Backers
who have already pledged may find his changes in bad taste. It
should be noted that there are certain parts of the campaign
page that cannot be edited. For more information, please see our
Frequently Asked Questions at getstarted.ph/faq.
After successfully campaigning funds for his project and
thereafter receiving them, the Campaigner should be accountable
for the money that he/she received. He/she must give monthly
updates for his projects until the same is completed. Please note
that any future project that you may have will depend on your
previous one. So, it is crucial to be accountable for every project
that you launch.
Networking & Marketing Your Campaign Project
During your campaign, your networking and marketing
skills will be very much tested.
Networking is all about relationships. If you want to
solicit from your family, you may choose to approach them
informally. However, this may not apply to your colleagues. It is,
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thus, important to have draft various letters for different persons
depending on how close they are to you. Here, you may want to
make different lists of people depending on the nature of your
relationship with them (ex. family, HS friends, colleagues, etc.).
A good marketing plan starts with a clear objective on
your desired objective. If you have a good campaign project page,
you’ll find it easier to promote your project as your goals and
objectives are already clearly laid down.
Remember, a really good project page will end up
marketing itself without any assistance from you.
IV.
CONCLUSION
Crowdfunding is a very powerful tool. Consequently, it
should be used with utmost care. After all, as it is said: with great
powers, comes great responsibility! So, use it wisely.
We at GetStarted are committed and determined to
make crowdfunding work in the Philippines. Hence, we will exert
all our efforts to build a community of trust and security. Should
we find any suspicious or fraudulent activity, we will not hesitate
to impose the proper sanctions – including cancelation of a
campaign project or deletion of an account.
In all, we hope that you have a safe, fun, and exciting
crowdfunding experience with us. We look forward to seeing your
projects in our community. Should you have any question, please
feel free to ask us through our Contact Us form at
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getstarted.ph/contact. We are here ready, willing, and able to
help you.
Thank you.
- - -
i
National Park Service, “Joseph Pulitzer,” available at
http://www.nps.gov/stli/historyculture/joseph-pulitzer.htm, last acctessed 10 May 2013,
7:27pm.
ii
massolution, “Crowdfunding Industry Report”, May 2012, Research Report, Abridged
Version, 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 and
advisory firm specializing in the crowdsourcing and crowdfunding industries.
iii
Kickstarter, Creator Questions/FAQ, available at
http://www.kickstarter.com/help/faq/creator+questions?ref=footer, last accessed 09 May
2013, 5:52pm.
iv
Please refer to our Terms of Service located at http://getstarted.ph/terms-of-service.