NailTheNumbers.comHOW TO: CREATE A KICK-ASS REWARDS BASED

CROWDFUNDING CAMPAIGN ©2014-2015 The Kolo Project, Inc. | Let’s Talk Money Campaign

Playbook No1 Released: November 3, 2014

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ALL GOOD? READ ON>>>

THE PLAYBOOK PROS

Suzanne Paschall | Founder and CEO, Indie Ink and NCFA Ambassador, Saskatchewan, Canada@SuzannePash indieinkpublishing.com/blog

Program, Western Ag Global@TTaunyanailthenumbers.com

BECAUSE IT NEEDS TO BE SAID

Building a rewards based crowdfunding campaign does not supersede the need for a well thought out business plan and calculated

attached to the business, roll up your sleeves and do the work. start

.

Taunya Woods Richardson | @TTaunya

Campaign Money | @NailTheNumbers

STEP 1: FLESH OUT YOUR IDEA

What type of project is it? Is it tech based, artistic in nature, community oriented?

How good is it? Will the audience be interested in it?

Is the idea simple to communicate? Do you have a prototype or visuals that you can

share?

Is your project suited to rewards based crowdfunding, or would equity or community

based crowdfunding make more sense?

©2014-2015 The Kolo Project, Inc. | Let’s Talk Money Campaign

STEP 2: DETERMINE YOUR [$$$] GOAL

One of the most important elements of a successful campaign is setting the right fundraising goal.

How much is needed to make the project a success?

Will you be looking to fund the full project through your campaign or only a specific element of the project?

Is the campaign your only source of financing? Or is it a platform to prove market demand in an effort secure additional investment through additional funders?

©2014-2015 The Kolo Project, Inc. | Let’s Talk Money Campaign

good rule of thumb is to plan on setting a funding goal that equals 33% more than the amount you actually need to complete your projectVia @CMF_FMCCanadian Media Fund

©2014-2015 The Kolo Project, Inc. | Let’s Talk Money Campaign

three months of a crowdfunding campaign, 28 percent of companies closed an angel investor or venture capital round. An additional 43 percent were in discussions with institutional investorsVia @CrowdCapAdvisor #BizFinLit

thin air for your #Crowdfund ask. Do the math. Know your numbersVia @TTaunya #BizFinLit

What other sources of money will you turn to?

Can the project still launch if

your goal, or do you need to raise the full

amount to make the project a reality?

This will help determine if you choose a flexible or fixed

model, which can influence your choice of portal.

UP NEXT, PICK A PORTAL

STEP 3: PICK YOUR PORTAL

The

The audience most likely to fund your campaign

Ability to transfer donor data

Social media integration

Customization of page

Flexibility of payment options

Array of promotion features and support ©2014-2015 The Kolo Project, Inc. | Let’s Talk Money Campaign

By March 2014, Kickstarter exceeded $1 billion in pledges.Via @Kickstarter

evolving and growing directory of active (or beta) Canadian Crowdfunding platforms, funding portals and service providers at

Via @NCFACanada

STEP 4: REFINE YOUR REWARDS

Know what will motive your contributors to support your campaign, and calculate the costs.

What rewards will you offer?

Are they skewed to different levels of contributions?

Are they relatively easy for you to deliver?

How much will they cost (both in terms of time and money) to develop and deliver?

How much will you raise (net) for each reward?

©2014-2015 The Kolo Project, Inc. | Let’s Talk Money Campaign

Current popular wisdom suggests the most popular

contribution level is $25Via @CMF_FMC

[Canada Media Fund}

STEP 5: MAP OUT YOUR PROMOTION PLAN

Pre-planning is key. Get ahead of the game with your:

Social Network (who, where and how)

Campaign Videos (message, delivery, style, execution)

Launch Party (who, where, when, why and how)

Social Media Campaign

Promotional Channels

Template Communication Content

©2014-2015 The Kolo Project, Inc. | Let’s Talk Money Campaign

Crowdfunding campaigns raise on average 30% of their target from their personal crowd in the first week of the

Via @SuzannePash

STEP 6: RECRUIT YOUR TEAM

Where will you need people power?

Social Media Management

Campaign Inquiries and Contributor Services

Reward Fulfilment

Public and Media Relations

Marketing and Promotions

Sanity Support

©2014-2015 The Kolo Project, Inc. | Let’s Talk Money Campaign

Think of your campaign as a business, and when you open doors, a customer service Via @SuzannePash

One of the most unanticipated and arguably most costly marketing expenses is the cost of managing ongoing engagement with your support community before, during and after your campaign.Via @CMF_FMC [Canada Media Fund]

STEP 7: CALCULATE THE COSTS

©2014-2015 The Kolo Project, Inc. | Let’s Talk Money Campaign

Costs add up quickly and the consequences of not taking all expenses into account can be harsh. Be sure to

budget for these basics:

PROJECT COSTS: Labour, space, equipment, legal, administration

MARKETING: Copywriting, video production, launch event, press releases, art work, social media ads

FULFILMENT: Development and production, shipping, packaging, time and resources

FEES: Portal fees, transaction fees, taxes

THE PROS

©2014-2015 The Kolo Project, Inc. | Let’s Talk Money Campaign

PROFILE: A compelling project can raise your profile and boost to your reputation.

PRODUCT VIABILITY: A successful campaign can validate your concept for future rounds of investment through

angels and/or venture capital. In the case of an unsuccessful campaign, it provides good market feedback.

COMMUNITY ENGAGEMENT: Crowdfunding creates a forum where you can engage with your audience. They in

turn can engage in the production process by following progress through your updates and sharing feedback.

FEEDBACK: Offering pre-release access to content or the opportunity to beta-test content to project backers as a

part of the funding incentives provides you with instant access to valuable feedback.

THE CONS

©2014-2015 The Kolo Project, Inc. | Let’s Talk Money Campaign

REPUTATION: Failure to meet campaign goals or to generate interest can result in a public failure. Reaching financial goals and successfully gathering substantial public support but being unable to deliver on your project can severely negatively impact your reputation, and your chances of being able to raise future funds.

IP PROTECTION: Many developers and content producers are reluctant to publicly announce the details of a project before production due to concerns about idea theft and protection of their IP from plagiarism.

CONTRIBUTOR EXHAUSTION: There is a risk that if the same network of supporters is reached out to multiple times, that network will eventually cease to supply necessary support.

UNCALCULATED COSTS: Not properly assessing the true costs associated with developing and delivering the rewards of a campaign can cost you greatly.

Do you have questions? Want to connect with the Pros, visit us at SpreeCast for a list of upcoming Playbook Drills including How to Create a Kick-Ass Rewards Based Crowdfunding Campaign.

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