Introduction to Crowdfunding ~Bret Harris, Strategic Partnerships firstname.lastname@example.org
Agenda Crowdfunding 101 Choosing a platform Why people contribute What makes a good campaign? The gogofactor
Introduction Crowdfunding is….. Pooling of funds, from the people who have passion about your idea. Often giving back a perk.
Crowdfunding is not new… Over $100,000 raised Average contribution: $0.89
Why crowdfunding?1. Raise money2. Gain visibility3. Gauge demand & mitigate risk4. Connect with your audience
Crowdfunding Crowdfunding is multiplying the power of your community, and your community’s communities, to make dreams happen. Crowdfunding IS… Crowdfunding isn’t… Shared enthusiasm Static collection
Preparation = success There are no “magic funding elves” (sorry ) You are responsible for generating interest and momentum for your campaign! Expect to raise 20-30% of funds from friends & family Prepare your marketing plan, build virality
What makes us unique? First! Since 2008 $ millions disbursed every month Open Anyone, Anything, Anywhere, Any time You keep your money…no matter what! Merit-based (gogofactor) Global We’re everywhere (on earth anyway) Over 120,000 campaigns 196 Countries
Maker Non-profit Dancer Religious organizationInventor Designer Game Developer Entrepreneur Food lover Musician ArtistSmall Business Community Activist Writer Photographer
What motivates people to contribute?Four “P”s behind why people fund: 1. Passion 2. Perks 3. Participation 4. Pride
What makes a good campaign? Engaging Pitch Attainable Goal Unique Perks Proactive Communication
Creating a Great Pitch The keys to creating a good pitch are honesty, transparency and authenticity. • Who: are you? • What: are you raising money for? • When: will your project take place? • Where: will your project take place? • Why: are you raising funds? • How: can people get involved? Make it personal… More tips: http://support.indiegogo.com/entries/20353061-create-a-great-pitch
Make it interesting More tips: http://support.indiegogo.com/entries/20353061-create-a-great-pitch
Goal SizeSetting a Higher Goal Doesn’t Always Mean More Money… 87% of campaigns that reach their goal exceed it…by an average of 32% Consider breaking large goals into smaller projects – success builds momentum Expect to raise 25-35% of your goal from within your own network (friends & family) The probability a campaign will reach its goal quadruples (4x) once it reaches 10% of its goal.
Creating perks Perks should be unique, creative, and personal. Join the conversation You can add up to 12 perks at one time. The average successful campaign has 5 – 8 perks. You can have more than 1 perk at a same amount You can change/add perks throughout campaign EventsMore tips: http://www.indiegogo.com/blog/2012/07/indiegogo-insight-perk-pricing-practices.html http://support.indiegogo.com/entries/20582388-great-perk-ideas 17
PerksPerk Ideas • Offer early access to products/services • Offer discounts or coupons • Throw a party for funders • Donated perks from local businesses • Teach a class or host a tour • Offer unique, limited edition items • Free entry or membership discounts • Personal thank you notes or phone call • Share insider secrets • Join the conversation
CommunicationCommunicate early & often 1-2 updates per week (treat it like a blog) Develop a social media/PR strategy Discuss updates, new perks, new media, milestones, etc.
Winning the middle game More tips: http://www.indiegogo.com/blog/2012/07/indiegogo-insight-winning-the-middle-game.html
Leverage Insight from DashboardDASHBOARD : Sample Project Identify, thank, and engage key influencers!
Learn more on our website Check out our Blog for insights, tips and ideas: https://www.indiegogo.com/blog/ Browse Indiegogo.com to view other successful campaigns: http://indiegogo.com Visit our Campaigner Happiness page to learn the basics: http://www.indiegogo.com/happiness/campaigner Browse our Help Center for answers to specific questions: http://support.indiegogo.com/forums
Merit-based platformGogofactor What is the gogofactor? An internal, proprietary algorithm used to measure the overall activity of your campaign. What is the purpose? Provides equal opportunity for any campaign to be featured (home page, newsletter, categories, etc.) More tips: http://support.indiegogo.com/entries/20589776-the-gogofactor
Merit-based platformGogofactor How does it work? • Campaigns with the highest ranking gogofactor scores will be featured/highlighted • The more active you are in promoting your campaign, the higher your gogofactor score will be. • 50% of the gogofactor is determined by internal activity by you (campaign owner) and other 50% is determined by external activity (crowd) More tips: http://support.indiegogo.com/entries/20589776-the-gogofactor
Merit-based platformGogofactor Internal Control • Adding perks to your campaign (we recommend 3-8) • Add outside links on your campaign • Include a video for your pitch • Add Images/video to your gallery • Regular updates to your contributors • Proactively promoting your campaign External Control • Campaign activity (comments, sharing, etc.) • # of unique funders • % to goal • Total funds raised More tips: http://support.indiegogo.com/entries/20589776-the-gogofactor