How to Plan for and Execute a Successful Crowdfunding Campaign

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My presentation on crowdfunding basics, including the do's and dont's of setting up a campaign, characteristics of a great campaign, and how to create a plan of action to achieve success and reach your goals.

Transcript

1. CROWDFUNDING 101 NEWBURYPORT CHAMBER FEBRUARY 20, 2014 Julia Claire Campbell - @JuliaCSocial J Campbell Social Marketing www.jcsocialmarketing.com 2. Crowdfunding Crowdfunding is the pooling of funds from passionate people to help make something special happen. ~GoGetFunding.com Great infographic: http://visual.ly/crowdfunding-success-statistics 3. Crowdfunding Websites that allow nonprofits, businesses and individuals to set up an online fundraising campaign based around a fundraising page, and accept money directly from that page using the websites own credit card processor. Kickstarter Fundraise.com Fundly indiegogo 4. Crowdfunding Smaller Goals Are More Attainable Averagesuccessful crowdfunding campaign is around $7,000. Average campaign lasts around 9 weeks. Campaigns that can gain 30% of their goal within the first week are more likely to succeed. http://www.fundable.com/crowdfunding101/crowdfu nding-statistics 5. Crowdfunding Marketing Drives Campaigns Thereis a direct correlation between the number of outside links to a crowdfunding campaign and the success of the campaign. Social Media is a critical factor in crowdfunding success: for every order of magnitude increase in Facebook friends (10, 100, 1000), the probability of success increases drastically (from 9%-, 20%, to 40%). http://www.fundable.com/crowdfunding101/crowdfu nding-statistics 6. Crowdfunding Demographics of the Crowd Age. Individuals ages 24-35 are much more likely to participate in crowdfunding campaigns. Those over 45 are significantly less likely to back campaigns. Gender. Men are much more likely to take a risk on an unknown startup. Income. Those earning over $100,000 per year are the most likely to invest in startups through crowdfunding. http://www.fundable.com/crowdfunding101/crowdfundin g-statistics 7. Benefits of Crowdfunding Less overhead in staff time, processing. Potential reach. Social media, email, peer-topeer. 24/7 access via online donation platforms; Required in our always-on, tech-reliant world. 8. Benefits of Crowdfunding Opportunity to share a compelling story of impact through multimedia, videos, photos. Very accurate data about donors. Tracking. Its safe when using a verified, reliable vendor. 9. Challenges of Crowdfunding Planning is more important than implementation . Tools can be confusing. If you build it, they will come not true. 10. Challenges of Crowdfunding It only works with an investment of time and concerted effort. It is not a fundraising panacea. It will not work if you do not have a compelling story to share. 11. So how to do it? Three main steps: 1) Planning 2) Marketing 3) Follow up 12. Planning Is Key! 13. Teamwork Is Key! 14. Planning 1) Get legal. Just as with other types of fundraising, online solicitations must be registered with the appropriate officials. Check with your state attorneys office or secretary of state office to find out the requirements in your state. Also, if you do online fundraising in states other than your own, you may need to register there as well. Resource: http://nonprofit.about.com/od/onlinefundraising/tp/onlinef undraisinghub.htm 15. Planning 2) Pick a project. Specific projects work best. Crowdfunding does not work for general asks. Why this project? Why now? Why are you asking? What will happen if this is NOT funded? 16. Planning 3) Choose a goal. Specific goal We want to raise $5,000 to build a playground in 3 months. We need to raise $60,000 or the theater will close. Kickstarter is an all-or-nothing platform. Make sure to budget for the fees that all the platforms collect whether or not you reach your goal. Kickstarter campaigns are 1 60 days. 17. Planning Screening Room Digital Fund Transition to digital projection Future: Ensuring the continued maintenance of the theaters equipment https://www.kickstarter.com/projects/andrewmun go/screening-room-digital-fund 18. Planning 4) Select rewards. What will motivate people to back your project? For nonprofits, its impact change to society, people helped, animals saved. For businesses, its something tangible tshirts, tickets, exclusive access, signed books. Must be products and experiences not cash. 19. Planning Rewards Seth Godin self-published his book https://www.kickstarter.com/projects/297519465/ the-icarus-deception-why-make-art-newfrom-seth-go Projecto Instagram projector https://www.kickstarter.com/projects/120957879 9/projecteo-the-tiny-instagram-projector 20. Planning 5) Instill urgency. 21. Planning Urgency http://www.indiegogo.com/projects/aidafghanistan-for-education-and-peace We must keep all 13 schools open and make up for the lack of funding as a result of cut-backs in USAID into Afghanistan. This requires much more than the initial $10,000 mentioned in this starting goal. 22. Planning 6) Be brief. 23. Planning In 300-500 words, be able to describe: The PROBLEM The WHY NOW The HOW (how the money will be spent) The WIIFM (whats in it for me) What will this do if funded? How will the world change? How will lives change? 24. Planning 25. Planning 7) Use video. 26. Planning Video https://www.kickstarter.com/projects/1960547 513/save-cinemasalem https://www.kickstarter.com/projects/1776324 009/brck-your-backup-generator-for-theinternet https://www.kickstarter.com/projects/cesarku riyama/1-second-everyday-app 27. Planning 8) Be responsive. Who will respond to inquiries and questions? How will you acknowledge donations? How will you record the donations? How will you cultivate these donors? Do you have a database? Will there be a special group for these donors? Create a detailed plan of action with responsibilities, tasks and timelines. 28. Planning 9) Find the right tool. Kickstarter Fundable Crowdfunder Indiegogo RocketHub CrowdriseRead the guidelines! Look at the fees involved. Explore. 29. Marketing 10) Press publish! Video Brief description Links Email Social media share buttons 30. Marketing Low hanging fruit first! 31. Marketing 11) Tell everyone! Dont just put the Donate Now button on your site and expect donations to roll in! Have to change the culture in some cases. Put info everywhere you touch investors or donors. Alleviate their fears and eliminate obstacles. 32. Marketing Sharing is caring! 33. Marketing Start with email. Use your network. Personal emails work best. Offer different ways to help small donations, spreading the word, sharing it, retweeting 34. Marketing Use social media. Use your networks. LinkedIn messages. Facebook! Twitter The key is getting others to share it for you. Write sample tweets and Facebook posts. Create great, shareable graphics! 35. Follow Up Build relationships. 36. Follow Up Keep people updated on progress. 37. Follow Up Updates Can be daily or weekly Be enthusiastic and positive This much has already been done, because of you! BUT we could also do so much more We are THIS close to achieving our goal! 38. Follow Up Share successes! 39. Follow Up Have a virtual party on Google Hangout or Skype. Have an in-person celebration party. Create as much buzz as possible in the local, regional and national press find niche publications. Share your success (or learnings) as a case study on your website. Offer to talk with other nonprofits or businesses about what you learned. 40. If these guys could do it Griz Coat: https://www.kickstarter.com/projects/hansr/gri z-coat Bug-A-Salt: http://bugasalt.com/ Cat Caf: http://www.indiegogo.com/projects/open-acat-cafe-in-london Pizza Museum: https://www.kickstarter.com/projects/2023690 459/pizza-brain-the-worlds-first-pizzamuseum-and-rest 41. Key Takeaways Have a plan. Create online policies for email marketing, online solicitation and social media. Make sure everything is in compliance. Take some time to find the right tool. Invest resources (staff, time, money) in fundraising, whether it be online or off. Professional development is your friend. 42. Resources Harness The Crowd www.harnessthecrowd.com free e-book and other resources The Crowd Caf www.thecrowdcafe.com Crowdmapped.com Smallknot.com for local businesses (not in Boston area, but coming soon) 43. Thank you! If you liked this presentation, please Like my Facebook Page: www.facebook.com/jcsocialmarketing Twitter: @JuliaCSocial Blog: www.jcsocialmarketing.com Email: julia@jcsocialmarketing.com Slides will be on SlideShare: www.slideshare.com/juliagulia77