The document provides 10 guidelines for successful crowdfunding of creative projects: 1) Understand the two types of crowdfunding and focus on rewards-based; 2) Get feedback before launching your campaign; 3) Treat backers differently than customers; 4) Carefully consider costs and pricing; 5) Develop strong marketing and community engagement; 6) Build trust and authenticity; 7) Offer solutions people want; 8) Analyze data and revise your approach; 9) Communicate regularly with backers; 10) Crowdfunding enables independence and disrupts traditional models.
4. Chinese Crowdfunding
• Still immature
• Chinese culture not yet ready to embrace
– Skepticism, trust
– Quality of projects
– Grey areas of laws concerning taxes
5. Rewards Based Crowdfunding
• Rewards Based pools money from the crowd to a
single large pot that creators use to make or do
something
• Reward investment : donate money, receive a
tangible reward – not just a thank you but something
physical and relevant to the project – this is NOT
charity
7. Great Idea! But How to Make it Real?
• Ideas are commodities. Execution is not. – Michael
Dell
• Crowdfunding leverages your idea to give you the
capital to execute
8. Strength in Numbers
• What the individual cannot do, a
focused group can
• Instead of asking 1 investor for
$10,000, ask 1000 people for
$10 each
9. Community + Connection
• Not a one way brand to consumer relationship
• The fan / patron / backer is invested in the result
• The creator is not alone and has help
11. Ouya : Android Game Console
• Potentially bigger, more agile than Playstation, Xbox,
or Wii
• Brings the viral, low cost game development model
of mobile gaming to console gaming
12. Pebble : E-Ink Connected Watch
• A better smart watch than Sony’s
• Validated the market potential and made Pebble a
household name brand in less than 60 days
• Backers told them what features they wanted
14. Simon Kwan + Ed Dean
• Designer from the US
• Entrepreneur and startup veteran from the UK
15. Experienced Backer
• Backed 50 projects so far in categories:
• Games
• Theatre
• Films
• Technology
• Fashion
• product design
• arts
16. PodKit Watch
• Lessons learned:
• Too late in the life cycle of iPod Nano
• Too niche a target marketn (pocket watches vs wrist
watches)
• Asked for too much money
• Confused people by having multiple main items (case
+ analog watch module)
• No social media presence (didn’t even have a Twitter
account)
17. X-Wing Squadron
• Joke campaign has raised more than ½ million dollars
• Viral element led to publicity
18. SIMPLcase iPhone 5
• Focused on solving a problem
• Minimized risk and lowered funding goal
• Received several reseller inquiries and requests for
product samples to review
19. SIMPLcase iPhone 4
• Received more than 220 written requests for iPhone
4 version during our iPhone 5 version campaign
20. Media Attention Builds Brand Recognition
• By the time we approach retailers, we will have
established some brand recognition and validation
for the product
22. Offer Something People Actually Want
• A gold turd is still a turd
• Solve problems
• Inspire play
23. 2. Get Feedback Before You Go Public
• Trust your advisors to provide help you examine
every detail of your plan
24. 3. Backers are NOT the Same as Customers
• Most brands spend years trying to capture and retain
evangelical customers
• Backers by definition are early adopters, fans, and
have the potential to be your evangelists
25. 4. Watch Your Overheads!
• Costs of production
• Wholesale, resale, margins, markups, discounts
• Logistics, marketing, packaging
26. 5. Pricing Strategy
• How much do you need to succeed?
• What are backers willing to spend?
• Tiered Rewards Levels
• High value Rewards
28. 7. Trust & Authenticity
• Be as transparent as possible
• Don’t cover up mistakes
• Be humble, be honest
• Trust that your Backers are as invested as you are
29. 8. Community
• Kicking it Forward
• Supporting other Creators
• Asking your backers to spread
the word
31. 10. Communicate & Engage
• Silence is bad Help Me,
• Regularly update your backers
Help You!
• Promote others and they’ll
promote you
• Relationships take time to build
32. Crowdfunding is the Future
• Creating new jobs
• Enabling independence from
long held corporate paradigms
• Disrupting the status quo
2 types = Investment and Rewards BasedBasically it’s smaller money put into a larger central pot
US basedOur focus is on Rewards Based
Still immatureChinese culture not yet ready to embraceSkepticism, trustQuality of projectsGrey areas of laws concerning taxes
Rewards Based pools money from the crowd to a single large pot that creators use to make or do somethingReward investment : donate money, receive a tangible reward – not just a thank you but something physical and relevant to the project – this is NOT charity
Ideas are commodities. Execution is not. – Michael DellCrowdfunding leverages your idea to give you the capital to execute
What the individual cannot do, a focused group canInstead of asking 1 investor for $10,000, ask 1000 people for $10 each
Not a one way brand to consumer relationshipThe fan / patron / backer is invested in the resultThe creator is not alone and has help
Here are some examples
Potentially bigger, more agile thanPlaystation, Xbox, or WiiBrings the viral, low cost game development model of mobile gaming to console gaming
A better smart watch than Sony’sValidated the market potential and made Pebble a household name brand in less than 60 daysBackers told them what features they wanted
Designer from the USEntrepreneur and startup veteran from the UK
Backed 50 projects so far in categories:GamesTheatreFilmsTechnologyFashionproduct designarts
Lessons learned:Too late in the life cycle of iPod NanoToo niche a target marketn (pocket watches vs wrist watches)Asked for too much moneyConfused people by having multiple main items (case + analog watch module)No social media presence (didn’t even have a Twitter account)
Joke campaign has raised more than ½ million dollarsViral element led to publicity
Focused on solving a problemMinimized risk and lowered funding goalReceived several reseller inquiries and requests for product samples to review
Received more than 220 written requests for iPhone 4 version during our iPhone 5 version campaign
By the time we approach retailers, we will have established some brand recognition and validation for the product
A gold turd is still a turdSolve problemsInspire play
Trust your advisors to help you examine every detail of your plan
Most brands spend years trying to capture and retain evangelical customersBackers by definition are early adopters, fans, and have the potential to be your evangelists
Costs of productionWholesale, resale, margins, markups, discountsLogistics, marketing, packaging
How much do you need to succeed?What are backers willing to spend?Tiered Rewards LevelsHigh value Rewards
Good ContentSocial InfluenceMass MediaPartnerships
Be as transparent as possibleDon’t cover up mistakesBe humble, be honestTrust that your Backers are as invested as you are
Kicking it ForwardSupporting other CreatorsAsking your backers to spread the word
Campaigns are living things – learn & adaptKickTraqBitLyAnalytics
Silence is badRegularly update your backersPromote others and they’ll promote youRelationships take time to build
Crowdfunding can and should be considered as a business strategy or at the very least a tactical tool