Crowdfunding Masterclass at the Community Renewables Congress, Canberra, June 2014

Crowdfunding Masterclass

Tom’s StoryHi! I’m Tom.@tomjd

Co-founder @StartSomeGoodPreviously: Founder/CEO @Vibewire,Social Media Director Ashoka

Agenda

1. Introduction to Crowdfunding: What’s going on

2. Why use Crowdfunding?3. What are you raising funds for?4. Setting Goals5. Why do people give?6. Identifying your stories and your

target communities7. Offering rewards that work

• Do Good Bus Hands

What’s Going On?

YES

Image by Michael Dawes

YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES

What crowdfunding isn’t:

• New • Easy money• Automatic• About “crowds”Because:• Crowdfunding platforms are not

communities you are raising funds from;• They are tools you use to raise funds

from YOUR community.

Why crowdfund then?

• What is new: more engaging and game-like

• Transparency around goals and outcomes

• Advice and other forms of support• Great for events/product launches/MVPs• Market validation• High success rate• You can start now

What are you raising money for?

• Be:–Specific–Inspiring–Realistic/Credible–Transparent

• Bad ask

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Setting Goals

Factors:•How much do you want and how much do you need?•How much risk are you comfortable with?•Tipping point vs your Ultimate Goal

• Do Good Bus

• Prison Garden

A simple (but complex) formula:

Reach x Propensity x CapacityExisting communityRelationshipsSocial media reach PartnershipsPR hooks newsworthinessHARD WORK

Your storyTold to the right people (targeting)Presentation (video, pictures)RewardsHow much do people care?

TargetingNeedValueRewards

5. Why do we part with our money?

• An expectation of future financial return (investing)

• A good or service we want (shopping)

• A future we hope to see (philanthropy)

• A friend or community we want to support (relationships)

Why do we part with our money?

• An expectation of future financial return (investing)

• A good or service we want (shopping)

• A future we hope to see (philanthropy)

• A friend or community we want to support (relationships)

• One where people are central to winning:

• Focus on what people already care about

• Make your project an amplifier, action or response to what people already care about.

Theory of change

• Who are they?

• Where are they?

• What do they care about?

• Why will they support you?

• What media do they consume?

• What social media do they make?

Reaching the Tribe

Have a marketing plan!

• Tips:–Line up your initial donors – early momentum is critical–Use different channels–Examine similar campaigns (search for who covered them)–Headlines matter–Be ready to work hard!–Be human

A rough sequence

• Before: line up your first supporters. Have people ready to pledge on minute 1, day 1. Talk about your upcoming campaign publically, share the process. Cultivate champions.

• Launch: Activate your day 1 supporters by phone, text, email.

• Day 3-7: Email blast to everyone you know• Share extensively on social media

• Week 2 onwards: Outreach to influencers: media, bloggers, celebrities, organisations. Connect with local media (use our template). Target relevant influencers, not just Oprah. Hold events.

• 4-7 days to go: Email blast to everyone you know.• Write to your existing supporters. Go crazy on socmed.

And remember to thank your supporters!

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Vote Yes Film

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Offering Rewards That Work

•Acknowledgement•Events•Swag•Souvenirs/Crafts•Objects created by the project itself•Unique experiences or items•Access to the team/skills/services offered/voting

Things to consider

• Be comfortable spending funds on rewards (you can budget for this in your tipping point)

• Make your rewards relevant• Find rewards which do double-duty• Create “money can’t buy” experiences• Have a decent number of levels• Be clear on if the reward is a product

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Vote Yes Film Rewards:

How Can We Help?