How to Do Crowdfunding Right - Lessons Learned and Case Studies

December 2014 | www.rockitresults.com

How to Do

Crowdfunding - the

Right Way

The Promise of Crowdfunding

The Reality of Crowd-Funding

• Only 34% of crowdfunding

campaigns succeed

• More than 100 platforms to

choose from

• Fees range from 3 to 12 percent

• Successfully-crowdfunded

projects aren’t always able to

deliver on their promises. No

penalty for late delivery.

This Presentation is Online

www.rockitresults.com | @rockitresults

About Matt Fieldman

www.rockitresults.com | @rockitresults

Today In the Past

VP of External Affairs, MAGNET Volunteered in Israel, Russia

CEO, Rockit Results Jewish Federation of Cleveland

Co-founder and Board President,EDWINS Leadership and Restaurant Institute

MedWish International

Founder, Cleveland Codes Fathom

Is Crowdfunding the Right

Choice for You?

Questions to Ask Yourself

• Do I have a real value proposition?

• How will engaging with my campaign enhance the lives of my supporters? What story will they tell themselves about the money they invest with me?

• Is my tribe big and committed enough to support this?

• Is this the last step in the process – or the first?

• Is crowdfunding really the best way to sell this product/service?

Questions to Ask Yourself

• Have you done

your research?

• Have you used

the CASE

method? R&D?

Alternatives to Mainstream Platforms

• Etapestry

• First Giving

• CrowdRise

• GoFundMe

• Wikipedia

comparison

Complicated to Choose

CrowdsUnite.com – Platform Selection

Strategies

Crowdfunding, Like All Sales, is Based on

Trust

Keep in Mind

Basic Strategies #1

• Have some funding already lined up. Campaigns that hit 60% funding almost always hit 100%.

• 25% of your funding should come from your “inner circle” within the first 2 weeks. (Hint: Annual Board Gift)

• Think about how you can incentivize backers to spread the word.

Basic Strategies #2

• Don’t bank on

Indiegogo or

Kickstarter promoting

your campaign.

• Indiegogo offers more

variety and tax

deductions for

nonprofit campaigns.

• Campaigns with videos

raise 114% more than

those without.

Advanced Strategies

Choose the Right Funding Strategy

• Fixed funding – campaign only moves forward if 100% funded

• Flexible funding – allows for raising less than the goal, at a higher fee

Create Unique, Exciting Perks

• Optimal number is 5 to 8; need to be exclusive and “cool”; focus on $75 level

• Utilize perks to entice Early Adopters. Limited editions, discounts, and other special recognition all work.

Have a Social Media Plan

• Pre-plan your campaign

• Use Thunderclap or Headtalker to coordinate many people

Advanced Strategies

• Regular updates for backers – best example of update

strategy

• Anticipate questions and set up a FAQ

• Referral contest

Generate custom links

for participants

Advanced Strategies

Utilize Your Dashboard to Update Your Campaign on the Fly

The Video

Key Strategies for a Great Crowdfunding

Video

• Production quality directly impacts likelihood of giving

• Keep it under 3 minutes – storyboard beforehand

• Have a great thumbnail so people hit play

• Appeal to the emotions, particularly “I need to have THAT!”

• Answer the consumer’s question: “What’s in it for me?”

• Stress the urgency – that the consumer shouldn’t wait until the product hits stores

Crowdfunding for Nonprofits

Keys to Nonprofit Crowdfunding Success

• Best for closing current prospects – NOT engaging brand-new

ones

• Think about what your donors would want

• Appeal to brains and heart – matching gift AND great

words/images.

• Offer evidence of your impact

• Celebrity supporters/endorsements

• Take a lesson from “Wait…Wait…”

Perks for Nonprofits

• Cheap printing: postcards, t-shirts, return

address labels

• Handwritten card or regular updates by

recipient / signed photos

• Public recognition

• Tickets to exclusive events

• Lunch with the Executive Director,

celebrity, or even other donors

• Experiences: Volunteer donations?

Corporate friends?

Case Study #1:

EDWINS Leadership and

Restaurant Institute

Why EDWINS Succeeded

• Strong initial tribe, with

a good mix of small

and big contributions

• Commitment of Board

to solicit friends and

family

• Emotional, meaningful

video

• Good use of Updates

and Gallery

• Unique, exclusive

perks

Promotion Ideas

The Importance of Promotion

• Link

National Outreach Strategies - Free

• Leverage social media in a big way

• Draft notification emails for friends, family, donors, etc.

• Write an article for posting on these websites

– EzineArticles

– Hub Pages

– Go Articles

– Article Dashboard

– Business Know-How

• Search for bloggers in your space. Offer them a free trial in

exchange for posting about your campaign.

• Comment on related blog topics, again found through searches.

• Search and post in relevant Facebook groups, email groups:

Yahoo, Google, Meetup, LinkedIn

Local Outreach Strategy - Free

• Post ads on CraigsList a weekly basis

• Freshwater Cleveland, CoolCleveland, other media outlets

• LinkedIn – search for relevant individuals and groups.

• “Accelerate 2015” for new ideas

Local Outreach Strategy - Free

• If you use any sort of paid search or Google Grant, be sure to post an ad campaign in your existing channels

• If you use any local directories (YellowPages, Google Business, CitySearch, etc) be sure to add a few lines about the contest and a link to the website.

Conclusion

In Closing – Final Reminders

1. Make sure crowdfunding

is the right channel

2. Offer amazing perks

3. Line up funders in

advance

4. Create a killer video

5. Have a robust promotion

strategy ready to roll

6. Keep your promises

www.rockitresults.com

Want to learn more?Contact [email protected]

or (866) 480-9002

Appendix

Case Study #2:

Fish Allure

Why Fish Allure Failed

• Funding not lined up in

advance

• Creating a new industry – not

something people are used to

• Not the right “thumbnail”

image

• Crowdfunding probably is NOT

the right strategy – need to go

directly to retailers