Darren Marble, Co-founder & CEO of FilmBreak, gave a Guest Lecture at the Stanford Graduate School of Business on rewards-based crowdfunding tips, trends, and the future of the industry.
Topics covered: Crowdfunding Overview, Crowdfunding for Entertainment, Case Studies, Tips for Successful Campaigns, Industry Trends, The Future
Crowdfunding Tips, Trends & The Future (Stanford GSB Guest Lecture, May 2014)
1. Darren Marble
Co-founder & CEO, FilmBreak
dmarble@filmbreak.com
310.710.9920 (cell)
@darrenmarble
May 2nd, 2014
CrowdfundX
The Future of Crowdfunding
11. Crowdfunding Overview
Crowdfunding is the collection of finance from
backers - the “crowd” - to fund an initiative and
usually occurs on Internet platforms.
With rewards-based crowdfunding,
contributions are exchanged for current or future
goods or services.
Kickstarter is the largest rewards-based
crowdfunding platform
12. Kickstarter Stats
Over $1B pledged
60k successfully funded projects
6mm unique backers
1.8mm repeat backers
14mm total pledges
However…
Most campaigns fail
Average raise is < $10k
Platforms provide zero support
14. Value Proposition for Entertainment
Get the WIN
Build and carry your audience
Generate tons of positive press
Retain creative control
Raise money
Successful campaigns:
Demonstrate consumer interest in your project
Mitigate risk for the real investors
Help you raise MORE MONEY
15. Tips for Successful Campaigns
Get 25% of target committed pre-launch
Identify 100 blogs to target for pitching
Offer compelling, visual rewards
Bigger network = greater credibility
Keep your audience engaged
16. There is no “free lunch”
Aggressive friends and family outreach
Facebook messaging is highly effective
If you’re asking for money, you’re doing it wrong
The marketing is as important as the money
Track your activity
The First 25%
17. Blog Outreach
Use the 80/20 rule to focus on best targets
Assign to a dedicated resource
Evaluate the “4 Rs”
Relevance
Readership
Relationships
Reach
18. Offer Compelling, Visual Rewards
Finished Product Rewards
Experiences
Giveaways and Keepsakes
“Crowdsourcing” and Participation
Price rewards low enough to have fair value,
but high enough to cover costs.
$25 rewards are the most common donations.
22. Retargeting
Retargeting is a form of online advertising
that helps keep your brand in front of bounced
traffic after they leave your website.
Retargeting uses JavaScript code to anonymously
‘follow’ your audience all over the Web.
Retargeting helps you reach the 98% of users
who don’t convert on the first visit.
24. Crowdfunding Agencies
FilmBreak's CrowdfundX service helps creators
to more effectively plan and execute
crowdfunding campaigns.
We partner with our clients by providing
campaign management, branding, graphic
design, PR and marketing.
Our clients include filmmakers, celebrities,
tech startups, for profits, and non-profits.
25. Sample Scope of Work
Beta + Launch Marketing Planning & Strategy
Crowdfunding Planning & Strategy
Crowdfunding Page Design & Development
Collateral Design
PR & Marketing
Backer Communications
29. Value Prop for “O&O” Campaigns
Creator has complete control
Design and brand as desired
Add plug-ins with ease
Extend your campaign
Own your audience - and data
Names and emails
Facebook interests
Keep your audience in one place
The catch:
You’re responsible for 100% of your traffic
Costs associated with a custom build
31. The Future
The industry needs automation
An ecosystem of SaaS tools will emerge
Crowdfunding will become a prerequisite
Crowdfunding will become an enterprise play