Crowdfunding
Crowdfunding
Susanne Bosch, susbosch@web.de
What is crowd funding? Crowd funding describes the collec9ve effort of individuals who network and pool their money, usually via the Internet, to support efforts ini9ated by other people or organiza9ons.
Susanne Bosch, susbosch@web.de
• Crowdfunding is used in support of a wide variety of ac9vi9es, including disaster relief, ci9zen journalism, support of ar9sts by fans, poli9cal campaigns, startup company funding, mo9on picture promo9on, free soCware development, inven9ons development, scien9fic research, and civic projects.
Susanne Bosch, susbosch@web.de
• Crowdfunding models involve a variety of par9cipants. They include the people or organiza9ons that propose the ideas and/or projects to be funded, and the crowd of people who support the proposals. Crowdfunding is then supported by an organiza9on (the "plaIorm") which brings together the project ini9ator and the crowd. Susanne Bosch, susbosch@web.de
• The inputs of the individuals in the crowd trigger to crowdfunding process and influence the ul9mate value of the offerings or outcomes of the process. Each individual acts as an agent of the offering, selec9ng and promo9ng the projects in which they believe. Each individual disseminates informa9on about projects they support in their online communi9es, genera9ng further support (promoters). Susanne Bosch, susbosch@web.de
• Mo9va9on for consumer par9cipa9on stems from the feeling of being at least partly responsible for the success of others’ ini9a9ves (desire for patronage), striving to be a part of a communal social ini9a9ve (desire for social par9cipa9on), and seeking a payoff from monetary contribu9ons (desire for investment). Susanne Bosch, susbosch@web.de
Goteo, social network for p2p crea:ve credits
• GOTEO is a digital plaIorm conceived to build a network for the produc9on, micro-‐financing and distribu9on of resources for crea9ve-‐oriented enterprises or individuals, and for the development of social, cultural, educa9ve and tech projects aimed at strengthening the commons. We are researching return mechanisms for this new structure between producers and micro-‐donors, or towards the public domain. This return can be in the form of money, 9me (hours of forma9on or assistance for other projects), or physical products such as open hardware or open designs. • h<p://youcoop.org/en/goteo/ Susanne Bosch, susbosch@web.de
Susanne Bosch, susbosch@web.de
How does it work? PREPARATION • Prepare your project with the passion and enthusiasm it deserves • Keep your message clear and use language that is simple and to the point. Poten9al funders should understand what the project is about in the first paragraph of text, so don’t waffle! • Upload a short video, it’s a great communica9on tool. Some of our funders said our video made their mind up to support our project • Calculate your monetary needs well Susanne Bosch, susbosch@web.de
COMMUNICATION AND NETWORKING Review your contact networks (personal/organisa9onal email lists, Facebook fans/friends, Twi_er followers, etc) to make sure they are up to date and engaged Examine those lists to understand how best these people can support you. Are there people on those lists who would be willing to help you spread the word about your project Even if you don’t have any or many influen9al people in your network, you should iden9fy people who might have an interest in your field of crea9vity. Contact them and explain what you are planning to do, and how it might be of interest to them.
Susanne Bosch, susbosch@web.de
FEEDBACK When developing your submission, you should get in touch with a few close friends/followers to ask their advice on your pitch, your video, whether the rewards are appealing, etc. OCen, you will be able to get valuable feedback from this, which you can include in your project before submi`ng (this will help reduce the 9me it takes between submi`ng your project and going live). Set aside the 9me to plan and run your marke9ng campaign both online and offline. Treat the campaign like a full-‐9me job, and make 9me to keep working on it. If people see you working hard on your campaign, they’re more likely to take you seriously and will assume you will work just as hard to make your project happen • Ensure that all the people involved in the project are on board to promote it to their contacts and networks – the bigger your target, the bigger your network should be • Consider hos9ng some mini-‐events during your campaign to remind people of the 9me leC and the amount s9ll to raise • Remember that the publicity generated during the campaign can be very valuable. It can help to build your audience by reaching out to new people, and also raises awareness of micro-‐philanthropy for the crea9ve sector. Remain enthusias9c and posi9ve throughout your campaign. There will be highs and lows, but don’t stop un9l you reach your target • Be crea9ve when communica9ng with your network. Rather than just pos9ng the link on social media plaIorms, think about including other interes9ng links or informa9on in your daily posts to engage people Susanne Bosch, susbosch@web.de
• Emphasise the ‘all or nothing’ policy • Prepare well – not just for your submission, but also how you will promote it once live. Know what you will be doing to promote it the first day it goes live, and everyday thereaCer • Be polite – you’re asking people to give you money in advance of ge`ng their reward • Deliver your rewards as promptly and professionally as you would like to receive them; you never know who you are dealing with! • Listen to advice; they know what they’re talking about Susanne Bosch, susbosch@web.de
What makes a project successful? • The recipe is a great idea/project, an engaged network of people to talk to; a steady flow of fresh and newsy informa9on about your project and a well thought through set of rewards priced to get you to your financial target.
Susanne Bosch, susbosch@web.de
Important • a speedy ini9al rally of pledges at the start (20% in the first 10 days!) • followed by a steady climb • and then a final rally as deadline approaches.
Susanne Bosch, susbosch@web.de
Check out different plaIorms: • • • • • • • • • •
h_p://pledgie.com/ h_p://www.kickstarter.com/ h_p://www.rockethub.com/ h_p://www.fundly.com/ h_p://www.gofundme.com/ h_p://appsplit.com/ h_p://www.microventures.com/ h_p://www.fundit.ie h_p://goteo.org h_p://youcoop.org/en/bcc/ Susanne Bosch, susbosch@web.de
Unusual things to be funded by the crowd: • Film about extraterrestrial life– “It Is Time For You To Know”: youtube.com/watch?feature=player_embedded&v=SJZ8wZrCCv0
Susanne Bosch, susbosch@web.de