go fund yourself: a primer on crowdfunding
DESCRIPTION
Presented at AFP Fundraising Day in Toronto. June 5, 2013. Learn about one of the newest social media and marketing tool on the market: crowdfunding. From bullied bus monitors (Karen Klein) to high-tech watches (Pebble), crowdfunding has raised millions of dollars for individuals and organizations. We'll cover the history and basics of crowdfunding, the different platforms that are available and things to keep in mind as you develop your own campaigns. We will also cover how to successfully integrate crowdfunding into your funding ecosystem, along with best practices and cautionary tales. Learning Outcomes Learn how crowdfunding works Learn about different crowdfunding platforms Learn if your organization will benefit from crowdfunding Learn how to implement a crowdfunding campaignTRANSCRIPT
Go Fund Yourself: A Primer on Crowdfunding
AFP Fundraising DayJune 5, 2013
Jason Shim, RHBPathways to Education Canada
#FRday13GOFY@jasonshim
What is the most interesting/fun way you could spend $20? Text your answer
or tweet #FRday13GOFY
CROWDFUNDING
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HISTORY
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2007 was the perfect digital storm.
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3 million donors 6.5 million donations online$500 million. 6 million < $100
Average donation: $80
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Kickstarter
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Pebble
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Bearlove good, cancer bad
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Tesla Museum
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So what?
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Case Study: Economics Camp!
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$
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$?
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$?!
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1. Specific Goal
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1. Specific Goal2. Urgency
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1. Specific Goal2. Urgency3. Reward
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You're not asking for money.You’re providing an opportunity.
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Pop Quiz
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Marketing Crowdfunding
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Marketing? Without virality
Video
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Ask yourself: Is it likeable?
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If you want to share,make it square!
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Perks
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People don't care about stuff.People care about people.
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People don't care about stuff.People care about people.People care about how stuff
makes them feel.
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Perks
8 personalized emails @ $257 postcards @ $505 videos @ $100Perks: $1050
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Have a backup plan
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Sometimes the backup plan is having none.
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The Numbers
Visitors - 389 Views - 725 Funders - 39 (Avg donation of $51)Contributions - $2,000 Favorites - 28 Referrals* - 434 * Referrals is the number of visits that result from someone sharing your
campaign using widgets, facebook, twitter and emails
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Disbursements
$2000 raised
$1835 collected(8.25% in fees)
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Case Study: Carl Wagan
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Lessons learned:-Marketing-Perk delivery-Unintended benefits
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When to Use Crowdfunding
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When to use Crowdfunding
- limited timeframe
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When to use Crowdfunding
- limited timeframe
- highly personal cause
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When to use Crowdfunding
- limited timeframe
- highly personal cause
- project-based
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When to use Crowdfunding
- limited timeframe
- highly personal cause
- project-based
- untapped network of supporters
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When to use Crowdfunding
- limited timeframe
- highly personal cause
- project-based
- untapped network of supporters
- highly engaged staff
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When to use Crowdfunding
- limited timeframe
- highly personal cause
- project-based
- untapped network of supporters
- highly engaged staff
- good digital capacity
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When not to use Crowdfunding
- substitute for regular fundraising
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When not to use Crowdfunding
- substitute for regular fundraising
- for general operational funds
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When not to use Crowdfunding
- substitute for regular fundraising
- for general operational funds
- limited digital / marketing capacity
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When not to use Crowdfunding
- substitute for regular fundraising
- for general operational funds
- limited digital / marketing capacity
- limited network
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Questions received
What are preferred platforms?
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Questions received
What are preferred platforms?
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Questions received
What are preferred platforms?
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Questions received
What are preferred platforms?
How to not cannibalize donors willing to give more?
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Questions received
What are preferred platforms?
How to not cannibalize donors willing to give more?
How does this differ from a public capital campaign or micro monthly donations?
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Best Practices
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Dance Floor
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Dance Floor
The 30% rule
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Marketing based on milestones
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Perks rewarding your fundersIs it a good deal?
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Have a logistical plan for perks
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Videos bring in 114% more funding
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PLAN. PLAN. PLAN
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Communicate!
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Reality Check
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50% of projects succeed
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1. Specific Goal2. Urgency3. Reward
Crowdfunding Takeaways
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1. Specific Goal2. Urgency3. Reward
Crowdfunding Takeaways
Capture the Imagination
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Questions?
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Jason [email protected]@jasonshim