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MenuWhat are some less obvious tips for ensuring my crowdfunding campaign is a huge success?
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At ShopLocket, we deal with a lot of crowdfunding alumni like InteraXon, Nomiku and PopSLATE (among others). Through talking with them and through other hardware entrepreneurs in our Blueprint series (www.shoplocket.com/blueprint), we've uncovered a lot of great tips and tricks that I haven't seen anywhere else. Here are just a few:
- Send individual emails to your mailing list when announcing your campaign rather than a generic mass blast. At least for people you're close with. It greatly increases the chance that they will act.
- Send calendar invites out to friends to remind them when the campaign starts.
- Have a website during the campaign to look more professional. Maybe even setup an AngelList profile, a lot of investors now use Kickstarter as a source for leads.
- Use virtual assistants from services like ODesk to help you with some of the grunt work launching your campaign. Like media list creation and email drafting.
- Be ready to launch pre-orders immediately after the campaign to keep up momentum. Just collecting email addresses rarely converts to sales months later.
- Send updates more than you think you should. It keeps everyone in the loop and also increases the likelihood that you get shared. Here are some stats on the collelation between updates and amount raised from Indiegogo > http://support.indiegogo.com/entries/20491883-how-to-send-campaign-updates
- Shipping can be very expensive. A cool hack is to ship pallets to Amazon overseas in order to save on international shipping
These are just a few tips, we're actually in the midst of writing a full guide. If you have any additional questions feel free to email me at katherine@shoplocket.com or ping me on Clarity!
I'm building a whole online course on this and have taken a bunch of Clarity calls on the topic. Here are a few "less obvious" tips:
1) Price "below MSRP". Unlike Amazon and Zappos, there is risk involved in crowdfunding purchases. Customers should get a discount for that risk. Backers want the reward. These platforms act more like a store for pre-orders. They're not a charitable donation platform.
2) Make each level more value than the last for not much more money. See AJ Leon's "Life and Times of a Remarkable Misfit" for a great example of this.
3) Your video needs to tell a story and resonate with the backers.
4) You need to have a marketing & press plan long before you launch. Crowdfunding campaigns get funded BEFORE the campaign, not during. It's the pre-work. The platform will bring you about 10% of your overall traffic. You need to bring the rest.
5) Collect emails pre-launch. Use Launchrock or something similar to collect emails in the weeks and months leading up to launch. Put your video up on a landing page or at least a photo & description. It's way better to launch with 500-1000 emails.
More at www.crowdfundinghacks.com or give me a call on Clarity.
Make sure you understand why would anyone contribute to your campaign. It's worth taking time to prepare the campaign, create a vibrant community, build a story and bring emotion, and imagine unique rewards that lets the audience engage in your project.
Related Questions
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Is it foolish to post a Kickstarter campaign for a SaaS that is primarily for businesses (not consumer oriented)?
It's not foolish, but it's going to be extremely hard to pull it off. I would consider starting with a beta program so you can have some paid clients to pay for the company's expenses. After you have some traction, you can raise a seed round.RD
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Is fundable.com a successful tool to help raise an equity seed round for a pre-launch startup?
We have used Fundable.com successfully for two rounds of financing both oversubscribed. Here is what I can tell you. Basic info: Fundable.com's platform connects accredited investors to startups seeking investment capital. Startups have a public facing profile that includes general information about the companies product, team, press accolade, etc. If you are raising funds claiming SEC Reg D 506(b) the public profile has no information about your securities offering. If an interested investor wants to view more information about your startup and or your offering, he/she would request access to your full profile. The investor must self accredit on the Fundable site before they are allowed to view your non-public profile. The startup is notified and you have the opportunity to conduct some due diligence on the investor (LinkedIn) and elect to invite them into your deal. Your private page includes the offering (terms). All communication from this point is done outside of the platform, meaning you have the investors email address ( a good thing to have). Fundable charges startups a flat monthly fee to post a profile on the site. In addition you can opt for additional services (help) with your campaign. For a flat fee, Fundable will assign resources to help build your profile, consult with you on your raise, and assist with PR or Marketing. This includes a blast to their investor base of over 40K if my memory serves me correctly. I am sure it is higher today. Our experience: For our first round on Fundable, we elected to use the premium service. Fundable did a great job in helping with our profile. We received 50+ views per day (quite often 100+) and on days we were included in their newsletter we received 200+ views. 10 - 20% of views requested access to our full profile. and 10-20% of those responded to my request for a call. Our close rate was very high. Both of our rounds were oversubscribed in less than 4 months taking averaging $50K per investor. These are high quality investors that have not created additional work (outside of normal investor updates). Many of our investors regularly share news and information about our industry. Several have re-invested in subsequent rounds. Disclaimer: Our startup is in the consumer hardware space which I believe tends to attract high net worth individuals. Obviously results may vary, thus I cannot speak to how well a SaaS play would do crowdfunding in general. Fundable.com's premium services offering may have changed since our campaign. I am not affiliated with Fundable.com. In fact we have been successful on other crowdfunding sites as well. In Closing: I am a proponent of crowdfunding in general. It is disrupting angel investing, providing investors with greater deal flow and exposing startups to an exponentially larger audience, increasing their chances to get in front of investors who understand and appreciate that company's solution and opportunity. Most importantly it is moving capital and driving innovation! Keep in mind, securities laws have changed and continue to change due to the Jobs act of 2012. Before you offer any securities to local investors or choose to try crowdfunding, you should consult with an attorney, and take the time to learn and understand what regulations apply to your circumstances.UB
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When launching a product on Kickstarter, how and when do you get press coverage?
It's all about building a relationship with these journalists and bloggers. You want them in your pocket long term. Ultimately, they are usually interested in the same things as you, which gives you a chance to connect on a deeper level and make an online friend. If you make a friend, then maybe they can even introduce you to their other journalist friends when the time is right. Ps: when you finally do send them your stuff, keep it short and make sure your visuals get the point off without them needing to read a description. Visual storytelling is huge. Remember: people don't like to readJM
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What will be the pros and cons of equity crowdfunding? Will crowdfunding give a startup a higher valuation? How will valuations be determined?
After shepherding 300 equity crowdfunding raises through our platform I'd say all of them have a higher valuation. Reason is it is the entrepreneur that is calling the shots. It is the entrepreneurs offer on their terms on an equity crowdfunding platform. Once you get outside investors involved shaping the deal the valuation will most certainly go down. Agreed it may then be more realistic as everyone believes their company is more valuable than it is. My advice? Treat early investors fairly. Money is the lubricant to get your idea into reality. Give them a fair share of the business and they will reinvest when need be.PN
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Any opinions on raising money on Indiegogo for an app?
Apps are difficult to fund on IndieGoGo as few are successful, and we rarely take them on as clients. Websites like http://appsfunder.com/ are made for that very reason, but again, difficult to build enough of a following willing to pay top dollar for an app that could very well be free, already existing in the marketplace. A site that is gaining more traction you may want to look into would be http://appsplit.com/. Again, Appsplit Is Crowdfunding For Apps specifically.RM
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