Momentum / breaking news /
Here’s where we are at right now: Last year, the total amount of money raised through crowdfunding projects exceeded that of venture capital - There is more money, going to more projects, through a distributed funding ecosystem, than the whole lot of million dollar checks going out from the accredited investors realm. - how many of you have backed a crowdfunding project? People are more curious than EVER about entrepreneurship, and they are willing to PAY just to have a behind the scenes view of getting funded and developing a project.
Seth Godin was recently quoted in a video interview trying to quell the rush of excitement around crowdfunding. “It shouldn’t be called Kickstarter. They should call it Kick Finisher. It only works when you have everything lined up ahead of time”
Over the last nine years I’ve been in the trenches of this rush, running campaigns, helping develop the audience organization principles that are part of our pre-launch conversation, and now it’s clear that we’ve created a dedicated system, applying old-school logic to new-school audience challenges, and it has catapulted my projects through to more visibility, Since that first failed event in 2009, I’ve now worked with project creators to use one on one conversations and personal relationship building to raise over $13 million dollars through crowdfunding.
What makes me different and better?
Plenty of other people in the crowdfunding industry are claiming that they can do “performance marketing” to generate “qualified leads” for your campaign- for a fair chunk of money they’ll promise you a list of five thousand or ten thousand verified emails of people who have walked through a jumble of ad clicks and internet opt-ins, or been harvested from linked in, but trust me - I’ve had clients work with these companies also and I’ve got to tell you: even the most “qualified” leads that come in via performance marketing aren’t going to convert at even one tenth as good as the people who you already know and love in this life, regardless of what your project is.
Instead of being like other performance marketing companies and telling you to point ten thousand dollars worth of ads to your opt-in landing page and hope for the best, I’m here to show you a more grassroots approach that relies on your personal networks, to engage with the people you already know, to create social capital and then at the right time magnetize the resources of success you need.
Projects I work with have beat the industry success average by 350% for 5 consecutive years, and when I have a client who works with me as the same time as the other companies, they always come back and say - you know dude, more than the PR, more than the list of “engaged subscribers” that we bought, you’re friends and family support system generated way more immediate and meaningful revenue for our project on our launch day.
The Chronicles of Perks and Rewards
As your campaign closes, you must redirect attention onto your own site. A campaign requires a minimum of 2-3 months of prep BEFORE the launch. If it starts to slow midway and the chances of success are diminishing backers will start to shy away. campaigns are somewhat more complex than you believe. While they certainly benefit from having a team of people dedicated to the project, there are still plenty of solo consultants that can help, too. With the most suitable outreach strategy, social media marketing program, content promoting program, and other preliminary marketing and advertising steps, your crowdfunding campaign may be an excellent success and help the raise the funds your project requirements. If you're thinking about launching a crowdfunding campaign, you are going to need to pay attention to your marketing.
So here are the three tactics, let’s just sit back and relax and I’ll show you some examples where we saw the most success - my advice is for you to have a pen an paer, because more likely than not if I’m showing you an example, it’s going to spark a message of inspiration in you, you can write out things your seeing and creative Ideas you have.
Problem / Situation:
fundraising for entrepreneurs
Take mobovida’s egregous failure - These guys we’re an established company with possible 50,000 email contacts. They payed me top dollar to create a video and page for their campaign - the video is amazing, high quality, very compelling. I thought it was going to be huge success.
And they couldn’t even drive $10k. It didn’t matter how good their page looked, or how energizing my video was. They were relying on fundraising consultants who gave false hopes from their weekly simple newsletter list and had a total misunderstanding of how to work with thousand people that opt-ed in on the product specific landing page from their kickstarter consulting.
After two weeks of losing a bunch of money on ads and fundraising firms, and only ending up with a few orders, the we’re horrified, they decided their project was no good and they took it off the shelf, even though I was urging them to reach out to there personal networks for months before they went live. This is a perfectly good project, with great market - why did they kill their idea? Was it really proof that the market didn’t want it? They might think so, but more than that it’s proof that newsletter marking and ads don’t convert for crap. This is a company with a 20,000 general product mailing list, and they even got 1,500 subscribers to opt-in to the product specific preview page “tell me when it goes live”, and they couldn’t even drive $6,000 in pledges in the first 24 hours? Let alone the first week?
Here’s where they failed at the fundraising school
-they thought customers we’re the same as friends
-they relied on promotional email to communicate about the project
-they expected extra traffic from the platform (no one came from Kickstarter)
-they expected that their facebook ads would convert (they didn’t)
-they thought the opt-ins from their mass kickstarter promotion newsletters we’re a sufficient confirmation of interest
-they never once asked anyone in their personal friends and family network for a hand or consulted with
A story of success - marketing experts
Then came the launch day. I woke up with m hands shaking. My jaw dropped when I saw it. $65,000 in the first 18 hours!!! Unbelievable!! And it kept going. A week into it he brought in an ads partner and ended up grossing $260k, the cumulative outpouring of support he saw from all friends and family was astounding. Beyond the monetary funding He had unheard of resources come through, and lined up distribution partners and wholesale deals on the side, and his business has been sailing ever since.
What to Do About Marketing Agency
Don’t get me wrong. Actually talking with 6,000 people can be hugely time consuming. It was. Before he went live, He was getting thousands of replies from each of his mailings and it was a full time job managing the communications. But he and his assistant loved it because although it was time consuming to reply to everyone, he was astounded at how nice it was to reconnect with some old friends and to hear about their lives too.
That’s the power of warm connection. It grows and grows.
Here are a few other examples:
Dreamed Pillow - followed the principles bust used insert via direct email to their past customer database, got an article in marie claire, raised $190k, and after that someone from Target found them, they negotiated a deal and now have national distribution
Baubax Jacket - raised $9 million from 400+ articles that people all over world wrote because of viral lift on share day and one article in can, and the way the founder used his business school cohort to beta test while they were all in session, his launch team wear all highly organized and committed to the task, the founder got $45k purchases in first 5 hours. Do you have any idea what it took for him to organize his whole class year for that?. Now that the jacket made it he got distribution with Brookstone in airports all over the world
Here’s another example:
Anyway, I show you these examples to get you excited about what is possible with a well situated campiagn, and now I’m going to go into into my key teachings and what actually went into makes a campaign marketing tick
Syncroniciy book - My fiancé wrote a book this year. She did no ads, no PR, just a handful of rinstgram referral partnerships and our four pre-launch messages. And she drove $10,000. Isn't that amazing!