July 2014 Product
Crowd Funding Success Code
This ebook contains the following contents:
Introduction
Getting Started
Popular Crowdfunding Sites
Kickstarter
CrowdCube
IndieGoGo
Setting Goals
Video Presentations
Promotions & Generating Buzz
Rewards
Social Media
Conclusion
Resources
Introduction
No part of this publication may be, including but not limited to, reproduced, in any form or medium, stored in a data retrieval system or transmitted by or through any means, without prior written permission from the publisher.
The information contained herein has been obtained from sources believed to be reliable at the time of publication. The opinions expressed herein are subject to change without notice.
Crowdfunding.
The word drums up all kinds of visions for the average person. Small startups exploding in popularity overnight. Companies on the verge of financial collapse being saved by a capital injection received through crowdfunding.
Crowdfunding came into popularity at a time when it was desperately needed. As traditional loans became nearly impossible for new companies to get and angel investors became much pickier about their investments due to the burst of the dot com bubble, crowdfunding saved the start-up world by providing a way for these new and emerging companies to find the funding they need.
Different sites have different rules, but the basics of setting up your crowdfunding project are pretty much the same no matter which system you’re using.
Popular Crowdfunding Sites
The first thing you’ll need to do is decide which site you want to use to generate funding. There are dozens of popular sites these days, and each has its own set of pros and cons you’ll need to weigh......
Kickstarter
>> http://www.kickstarter.com
Kickstarter is perhaps the most popular crowdfunding website. It launched in 2009 and has since been used by thousands of people, to rise funding from millions of individual backers!
Here are some interesting facts about Kickstarter:
• Creators keep 100% control and ownership. They do not have to give up any ownership of their company, nor any share of their profits. All funds are donated by backers with no expectations of monetary gain.
• Kickstarter accepts pretty much any kind of creative project you can think of.
• Kickstarter charges a 5% success fee, but you’ll only have to pay if your project is fully funded. So keep this in mind and account for the fee when you set your funding goal.....
CrowdCube
>> http://www.crowdcube.com
CrowdCube, a UK-based crowdfunding solution, is different from your average crowdfunding system. Rather than offering donation-based funding, CrowdCube works more like traditional investment, where you must give up a percentage of your equity to backers.
Here are some facts about CrowdCube:
• You must give up a percentage of equity to investors.
• You must have a business plan and financial forecasts available in order to be “investment ready”.
• There are no listing fees or membership fees, but they do have a 5% success fee, plus a solicitor fee and admin fee, plus 0.5% of the total raised for payment processing.
CrowdCube is a good place to try if you’ve tried other funding methods and haven’t been able to reach your goal. Because you’re relinquishing some equity in your company, it may be easier to get funded.....
IndieGoGo
>> http://www.indiegogo.com
IndieGoGo is very similar to KickStarter. It’s a bit more geared toward creative pursuits than other sites, but they still accept physical products as well as creative projects like movies and books.
Here are some facts about IndieGoGo:
• You keep 100% ownership of your company.
• Success fee is 4%, lower than some others. If you don’t meet your goal, the fee is 9%. They also charge a 3% processing fee for payments from credit card and PayPal.
• Unlike other sites, you still get to keep any money you raise, even if you don’t meet your goal. However, if you opt for the Fixed Funding option, you must reach your goal in order to keep any money....
Setting Goals
Setting your goal is a critical element of any crowdfunding campaign, because most sites require you to reach that goal before releasing any money to you. If you don’t meet your goal, you get nothing, and backers receive their money back.
Why do they do this?
The main reason is to ensure that only quality projects get funded. For example, if you ask for $5,000 to publish a short story, they don’t want that to get funded, because there’s no reason anyone should spend that kind of money to publish a short story.....
Video Presentations
One of the most important things you can do to really generate interest in your project and increase your chances of meeting your funding goal is to create a really killer video presentation.
Projects with video presentations are much more likely to get fully funded than those without video, because video is interesting, engaging, and can present your project in a way that is much easier to understand than text and pictures alone.
Promotions & Generating Buzz
Once you’ve created an interesting project with a great video presentation, it’s time to get eyeballs on it. This means doing a lot of promotion, and hopefully generating a little viral buzz.
One of the most important things you can do to get people interested is to offer interesting perks to people who donate money.
Don’t forget to use social media to generate interest. Ask everyone you to know to share your project on all of their social media accounts, and consider making social media accounts specific to your project.
Crowdfunding is a great way to get funds for your business or project, but always remember that if you fail to meet your funding goal, you won’t receive anything.....
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