the five phases of crowdfunding campaigns
TRANSCRIPT
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CrowdfundingThe Five Phases of Crowdfunding Campaigns
‘‘THE PRACTICE OF
FUNDING A PROJECT OR
VENTURE BY RAISING
MONEY FROM A LARGE
NUMBER OF PEOPLE
WHO EACH
CONTRIBUTE A
RELATIVELY SMALL
AMOUNT.
OXFORD DICTIONARY
‘‘
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4 Types of Platform
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Backers donate to good causes without respecting a return.
Donations
Equity 2. 4.
Entrepreneurs offer shares in their businesses to investors in return for funding.
Peer-to-peer3.
Operates in a similar way to a bank where platform determines risk and rate of interest.
Rewards
1.
Similar to pre-ordering goods as campaigner pledges to do something in return for backing.
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The 30%Rule64% of Kickstarter campaigns fail (36% succeed).
Those that fail generally raise a fraction of their target (0-20%). As such if your campaign manages to raise over 30% it has a 90% chance of succeeding.
Data taken from 213,161 failed Kickstarter campaigns.
22%
62%
10%
4% 1% 1%0%
10%
20%
30%
40%
50%
60%
70%
0% 1%-20% 21%-40% 41%-60% 61%-80% 81% - 99%
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Campaign Breakdown Day to Day
On average 28% of the funds raised during a campaign will be raised in the first 3 days.
On average 66% of funds raised during a campaign will be raised in the first and last week (very little gets raised in the middle). The spike at the end is due to a mixture of psychology and campaign marketing.
For more stat’s on campaigns check out Sidekick.
0%
2%
4%
6%
8%
10%
12%
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5 Phases of Crowdfunding: Timeline
INITIAL PLAN
1-2 Weeks
Audit existing crowd,
assets and set out
timescales.
CREATE ASSETS
2 Months
Create assets necessary
for campaign including
video, copy, photography
and media kit.
In practice this is done in
tandem with the building
support phase.
BUILD SUPPORT
2 Months
Grow your crowd as
much as possible prior to
launch.
LAUNCH & RUN
1 Month
The campaign will typically
run for 25 to 40 days on a
rewards platform.
POST CAMPAIGN
1-24 Months
Delivering the reward
and keeping backers
updated.
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Phase 1The Initial Planning of the Campaign
Select Platform
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All or Nothing36% Project Success Rate
Mainly Flexible Funding10% Project Success Rate
Either Method21% Success Rate
Outline Rewards:House Party
1. PDF version of comic £32. Print version of comic £103. Signed comic + second comic (I’m on fire) £354. Signed comic + original page £555. All of the above + original sketch £200
6. Stretch Goal: 10 Pages of Original Artwork.
Might also want to consider early bird discounts on products to get that initial support driving your campaign.
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Rachel Smith’s “House Party”
Raised £5,234 from 252 backers
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Add 20%
To Your Target
For Fees,
Credit Cards & Postage
Interesting Facts
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£3,766Average raised on Kickstarter (Median)
30Days
Average campaign length
9Average number of rewards
59,996
Tuesday & Wednesday because you get 3 working days
Best Day’s to Launch
$25
Most popular pricing level
63%
Most successful category is DANCE.
Film & Video is the most popular category for campaigns
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Feedback:Survey Monkey
Before launching into your campaign it’s worth surveying your crowd to make sure that they want what you’re offering. Survey Monkey is a free and easy to use tool which will allow you to get the feedback you need.
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Phase 2Create the Required Marketing Collateral
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Construct Narrative
• Idea
• Elaborate (Examples)
• Goal
• Reward
• Call to Action
Think about your campaign as a story and how best to tell it.
The Sales Process
The first thing marketing collateral does is gets us known. It should be easy to understand what we are offering and who we are offering it to.
KnowNext we want the backer to like us and our products. This is especially important in crowdfunding where backers are buying into the entrepreneurs journey.
Like
Now that the backer likes us, it’s important that they trust us. This is achieved through providing evidence such as video’s of the prototype, awards, testimonials.
Trust
If the backer knows, likes and trusts you then they will probably buy. Although it’s still important to have a clear call to action when it comes to closing the sale.
Buy
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Nimble
Video 1:58 (Average 3:04)1,893 backers pledged £34,757.
Know Know
Like Trust
Trust Buy
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Think about using infographics to tell your story.Nimble
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Phase 3Build & Organize Your Crowd
Organising Contacts
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The Power of Email
Email enjoys a click through rate of between 2% & 4% whereas social media only manages 0.3% to 0.7% so email is the most important method.
Use a free email marketing service like MailChimp to distribute to your mailing list and monitor opening rates and responses.
MailChimp also allows you to create sign-up forms and post on your website.
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Social Media should be used to build up a
mailing list not replace it.
Organising Social Media
Hootsuite allows you to manage your social media. You can choose when to post and across multiple platforms saving time.
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LAUNCH ROCK KROWDSTER BUZZSUMO
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Phase 4Launch & Run
Campaign Calendar
Social media and email correspondence should now be arranged and any key events pencilled in.
What else can be done?
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Launch:Thunderclap
Thunderclap is an App that allows users to post content on other peoples social media accounts (with their consent).
The idea is that a post can be made across 100 or more accounts all at once increasing the chances of that post trending throughout social media.
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Periscope
Think about live streaming a Q&A session during the campaign to attract more interest
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Phase 5Success!
Now Make Good on Your Promises
Update Backers:Geco Hub
It took 14 months to deliver Geco Hub with backers being updated 39 times.
Delay’s are to be expected with around 96% of products on Kickstarter arriving late.
The average project delay is 7 months but backers tend not to mind too much if they are kept updated frequently.
Part of the appeal of Kickstarter is that you get to witness the journey
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Simon Lyon’s “Geco Hub”
Raised £25,106 from 339 backers.
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It took 14 months to deliver Geco Hub so backers were updated 39 times
Geco Hub
Shipping: BackerKit
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