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CROWDFUNDING 101
NEWBURYPORT
CHAMBER
FEBRUARY 20, 2014
Julia Claire Campbell - @JuliaCSocial
J Campbell Social Marketing
www.jcsocialmarketing.com
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
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 website’s own credit card processor.
 Kickstarter
 Fundraise.com
 Fundly

 indiegogo
Crowdfunding


Smaller Goals Are More Attainable
 Average

successful 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
Crowdfunding


Marketing Drives Campaigns
 There

is 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
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
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.
Benefits of Crowdfunding





Opportunity to share a compelling story of
impact through multimedia, videos, photos.
Very accurate data about donors. Tracking.
It’s safe when using a verified, reliable
vendor.
Challenges of Crowdfunding






Planning is
more important
than
implementation
.
Tools can be
confusing.
If you build it,
they will
come… not
true.
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.
So how to do it?
Three main steps:
1) Planning
2) Marketing
3) Follow up
Planning Is Key!
Teamwork Is Key!
Planning
1) Get legal.






Just as with other types of fundraising, online
solicitations must be registered with the appropriate
officials.
Check with your state attorney’s 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
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?
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.
Planning
Screening Room Digital Fund
Transition to digital projection
Future: Ensuring the continued maintenance of
the theater’s equipment
https://www.kickstarter.com/projects/andrewmun
go/screening-room-digital-fund
Planning
4) Select rewards.







What will motivate people to back your project?
For nonprofits, it’s impact – change to society,
people helped, animals saved.
For businesses, it’s something tangible – tshirts, tickets, exclusive access, signed books.
Must be “products and experiences” not cash.
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
Planning
5) Instill urgency.
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.”
Planning
6) Be brief.
Planning
In 300-500 words, be able to describe:
The PROBLEM
The WHY NOW
The HOW (how the money will be spent)
The WIIFM (what’s in it for me)
What will this do if funded? How will the world
change? How will lives change?
Planning
Planning
7) Use video.
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
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.
Planning
9) Find the right tool.












Kickstarter
Fundable
Crowdfunder
Indiegogo
RocketHub
Crowdrise

Read the guidelines!
Look at the fees involved.
Explore.
Marketing
10) Press publish!
 Video
 Brief description
 Links
 Email
 Social media share buttons
Marketing
Low hanging
fruit first!
Marketing
11) Tell everyone!







Don’t 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.
Marketing
Sharing is caring!
Marketing
Start with email.
 Use your network.
 Personal emails work best.
 Offer different ways to help – small donations,
spreading the word, sharing it, retweeting
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!
Follow Up
Build relationships.
Follow Up
Keep people updated on progress.
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!”
Follow Up
Share successes!
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.
If these guys could do it…
Griz Coat:
https://www.kickstarter.com/projects/hansr/gri
z-coat
Bug-A-Salt: http://bugasalt.com/
Cat Café:
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
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.
Resources
Harness The Crowd –
www.harnessthecrowd.com – free e-book
and other resources
The Crowd Café – www.thecrowdcafe.com
Crowdmapped.com
Smallknot.com – for local businesses (not in
Boston area, but coming soon)
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

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How to Plan for and Execute a Successful Crowdfunding Campaign

  • 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 website’s own credit card processor.  Kickstarter  Fundraise.com  Fundly  indiegogo
  • 4. Crowdfunding  Smaller Goals Are More Attainable  Average successful 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  There is 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. It’s 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
  • 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 attorney’s 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 theater’s 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, it’s impact – change to society, people helped, animals saved. For businesses, it’s 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
  • 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.”
  • 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 (what’s in it for me) What will this do if funded? How will the world change? How will lives change?
  • 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 Crowdrise Read the guidelines! Look at the fees involved. Explore.
  • 29. Marketing 10) Press publish!  Video  Brief description  Links  Email  Social media share buttons
  • 31. Marketing 11) Tell everyone!     Don’t 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.
  • 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!
  • 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!”
  • 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 Café: 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 Café – 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