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The Five Phases of Crowdfunding Campaigns

This short presentation provides advice and guidance on how best to run a rewards based crowdfunding campaign. The 5 key phases of the campaign are outlined and examples are given of how campaigns have worked in the past.

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The Five Phases of Crowdfunding Campaigns

  1. 1. 1 Crowdfunding The Five Phases of Crowdfunding Campaigns
  2. 2. ‘‘ THE PRACTICE OF FUNDING A PROJECT OR VENTURE BY RAISING MONEY FROM A LARGE NUMBER OF PEOPLE WHO EACH CONTRIBUTE A RELATIVELY SMALL AMOUNT. OXFORD DICTIONARY ‘‘ 2
  3. 3. 4 Types of Platform 3 Backers donate to good causes without respecting a return. Donations Equity 2. 4. Entrepreneurs offer shares in their businesses to investors in return for funding. Peer-to-peer 3. Operates in a similar way to a bank where platform determines risk and rate of interest. Rewards 1. Similar to pre-ordering goods as campaigner pledges to do something in return for backing.
  4. 4. 4 The 30%Rule 64% of Kickstarter campaigns fail (36% succeed). Those that fail generally raise a fraction of their target (0-20%). As such if your campaign manages to raise over 30% it has a 90% chance of succeeding. Data taken from 213,161 failed Kickstarter campaigns. 22% 62% 10% 4% 1% 1% 0% 10% 20% 30% 40% 50% 60% 70% 0% 1%-20% 21%-40% 41%-60% 61%-80% 81% - 99%
  5. 5. 5 Campaign Breakdown Day to Day On average 28% of the funds raised during a campaign will be raised in the first 3 days. On average 66% of funds raised during a campaign will be raised in the first and last week (very little gets raised in the middle). The spike at the end is due to a mixture of psychology and campaign marketing. For more stat’s on campaigns check out Sidekick. 0% 2% 4% 6% 8% 10% 12% 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38
  6. 6. 5 Phases of Crowdfunding: Timeline INITIAL PLAN 1-2 Weeks Audit existing crowd, assets and set out timescales. CREATE ASSETS 2 Months Create assets necessary for campaign including video, copy, photography and media kit. In practice this is done in tandem with the building support phase. BUILD SUPPORT 2 Months Grow your crowd as much as possible prior to launch. LAUNCH & RUN 1 Month The campaign will typically run for 25 to 40 days on a rewards platform. POST CAMPAIGN 1-24 Months Delivering the reward and keeping backers updated.
  7. 7. 7 Phase 1 The Initial Planning of the Campaign
  8. 8. Select Platform 8 All or Nothing 36% Project Success Rate Mainly Flexible Funding 10% Project Success Rate Either Method 21% Success Rate
  9. 9. Outline Rewards: House Party 1. PDF version of comic £3 2. Print version of comic £10 3. Signed comic + second comic (I’m on fire) £35 4. Signed comic + original page £55 5. All of the above + original sketch £200 6. Stretch Goal: 10 Pages of Original Artwork. Might also want to consider early bird discounts on products to get that initial support driving your campaign. 9 Rachel Smith’s “House Party” Raised £5,234 from 252 backers
  10. 10. 10 Add 20% To Your Target For Fees, Credit Cards & Postage
  11. 11. Interesting Facts 11 £3,766Average raised on Kickstarter (Median) 30Days Average campaign length 9 Average number of rewards 59,996 Tuesday & Wednesday because you get 3 working days Best Day’s to Launch $25 Most popular pricing level 63% Most successful category is DANCE. Film & Video is the most popular category for campaigns
  12. 12. 12 Feedback: Survey Monkey Before launching into your campaign it’s worth surveying your crowd to make sure that they want what you’re offering. Survey Monkey is a free and easy to use tool which will allow you to get the feedback you need.
  13. 13. 13 Phase 2 Create the Required Marketing Collateral
  14. 14. 14 Construct Narrative • Idea • Elaborate (Examples) • Goal • Reward • Call to Action Think about your campaign as a story and how best to tell it.
  15. 15. The Sales Process The first thing marketing collateral does is gets us known. It should be easy to understand what we are offering and who we are offering it to. Know Next we want the backer to like us and our products. This is especially important in crowdfunding where backers are buying into the entrepreneurs journey. Like Now that the backer likes us, it’s important that they trust us. This is achieved through providing evidence such as video’s of the prototype, awards, testimonials. Trust If the backer knows, likes and trusts you then they will probably buy. Although it’s still important to have a clear call to action when it comes to closing the sale. Buy 15
  16. 16. 16 Nimble Video 1:58 (Average 3:04) 1,893 backers pledged £34,757. Know Know Like Trust Trust Buy
  17. 17. 17 Think about using infographics to tell your story.Nimble
  18. 18. 18 Phase 3 Build & Organize Your Crowd
  19. 19. Organising Contacts 19
  20. 20. The Power of Email Email enjoys a click through rate of between 2% & 4% whereas social media only manages 0.3% to 0.7% so email is the most important method. Use a free email marketing service like MailChimp to distribute to your mailing list and monitor opening rates and responses. MailChimp also allows you to create sign-up forms and post on your website. 20 Social Media should be used to build up a mailing list not replace it.
  21. 21. Organising Social Media Hootsuite allows you to manage your social media. You can choose when to post and across multiple platforms saving time. 21
  22. 22. 22 LAUNCH ROCK KROWDSTER BUZZSUMO
  23. 23. 23 Phase 4 Launch & Run
  24. 24. Campaign Calendar Social media and email correspondence should now be arranged and any key events pencilled in. What else can be done? 24
  25. 25. 25 Launch: Thunderclap Thunderclap is an App that allows users to post content on other peoples social media accounts (with their consent). The idea is that a post can be made across 100 or more accounts all at once increasing the chances of that post trending throughout social media.
  26. 26. 26 Periscope Think about live streaming a Q&A session during the campaign to attract more interest
  27. 27. 27 Phase 5 Success! Now Make Good on Your Promises
  28. 28. Update Backers: Geco Hub It took 14 months to deliver Geco Hub with backers being updated 39 times. Delay’s are to be expected with around 96% of products on Kickstarter arriving late. The average project delay is 7 months but backers tend not to mind too much if they are kept updated frequently. Part of the appeal of Kickstarter is that you get to witness the journey 28 Simon Lyon’s “Geco Hub” Raised £25,106 from 339 backers.
  29. 29. 29 It took 14 months to deliver Geco Hub so backers were updated 39 times Geco Hub
  30. 30. Shipping: BackerKit 30
  31. 31. 07872 945611 steve@gambit-consulting.co.uk @gambit365 Steven Lyons / gambit365

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