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Crowdfunding is something that totally baffles me. I have been considering using it to fund my first novel. (My #gimmicknotgimmick is that the protagonist is an adult female with Asperger’s. Like me. Characters like me don’t seem to exist in adult fiction, only in YA fiction.) So that’s my personal interest in David Binkowski’s VIP session this afternoon.
Crowdfunding
Who is David Binkowski?
- President, Large Media
- Based in the Catskills
- Type-A Veteran
Over the last 14 months, they have launched the largest companies through crowdfunding.
Crowdfunding Basics
- What is crowdfunding? Small dollar amounts from a large number of people.
- Why crowdfund? Because you need money.
- What are the rules?
- Some states (GA, KS, AL, ME, WI, IN) have rules in place; others in progress
- Nothing from the SEC
- It’s kind of the Wild West out there
Key Elements of a Successful Campaign
- Great idea
- Great plan
- Great promotion (PR, website, ads, social, video)
- Great execution
- Great follow through and communication
Lots of Kickstarter projects fail because they’re just not good ideas. More fail because they don’t have a plan for success. More fail because they aren’t promoted properly. You have to have a website first to legitimize you. Facebook ads work. You have to have a good video – not just any video – a good video. That’s your one chance to pitch it like you’re making an actual commercial. A crowdfunding campaign is a lot of work. You have to stay on top of it. People want to know what you’re doing with their money, so you have to keep them in the loop. Use Twitter, use email, use Facebook.
Determining the Need
- Utilizing existing online tools/data (keyword research with Google AdWords, Facebook Ads, etc.)
- Trends
- Research (3rd party & proprietary)
- A/B test (idea, name, price)
“How many people can I get to back this?” Assume a 1% conversion based on FB likes or clickthroughs
Choosing a Platform
The big three are:
- IndieGoGo: They take 4% if you reach your goal, 9% if not; 3% processing fees; more flexible than Kickstarter; uses PayPal, smaller community than Kickstarter
- Kickstarter: 5% if goal met; you get nothing if you don’t reach your goal; processing 3-5%; campaigns up to 60 days, but 30 days builds more immediacy
- Selfstarter: no fees; open source; you need a good developer to build it; similar business model on Tilt
Pre-Launch Checklist
- Something to sell
- Trademark & Patent*
- Messaging, FAQ
- Press release & media list
- Website with sharing, referrals
- Video (make sure you come off as professional)
- Social presences (choose the relevant social platforms for your niche; nothing good ever comes from YouTube comments)
- Advertising – creative and $$
- CRM (customer relationship management)
- Email management (keep in touch even after the campaign ends)
A lot of stuff you share privately during a campaign will become public eventually.
Crafting Your Message
- How is your product different than what’s currently available?
- Articulate how you are solving a problem.
- Sum up your project in less than a tweet.
You are not Apple. You’re a start-up. You can’t recover from messaging problems.
Nailing the Launch
- EVERYTHING MUST WORK
- Literally the most exciting day of your life on launch day
- Tell everyone you know, and ask them to share (this is the one time you’re allowed to spam your friends)
- Media placements are crucial (if you can’t line up the right media, then wait)
- Social ads and customer support are mandatory (go CPC, not CPM in most cases)
What to Do Post-Launch
- Answer questions
- Learn, adapt, and adjust
- Communicate
- Look for earned media opportunities
- Track and measure everything (ditch whatever isn’t delivering, ramp up whatever is)
- Smile! You only launch once! 🙂
That’s me: Christina Gleason. I’m a writer, editor, and disability advocate. I'm a multiply disabled autistic lady doing my best in this world built for abled people. I’m a geek for grammar, fantasy, and casual gaming. I hate vegetables. I cannot reliably speak, so I’ll happily conduct business over email or messaging instead.
