crowdfunding tips, trends & the future (stanford gsb guest lecture, may 2014)
DESCRIPTION
Darren Marble, Co-founder & CEO of FilmBreak, gave a Guest Lecture at the Stanford Graduate School of Business on rewards-based crowdfunding tips, trends, and the future of the industry. Topics covered: Crowdfunding Overview, Crowdfunding for Entertainment, Case Studies, Tips for Successful Campaigns, Industry Trends, The FutureTRANSCRIPT
IntroductionCrowdfunding Overview Crowdfunding for EntertainmentEntertainment Crowdfunding Case StudiesTips for Successful Campaigns Industry TrendsThe Future Q&A
Agenda
Bay Area Roots
UCLA
Time Warp
Silicon Beach
Diving In
Professional Services
Professional Services
Samwise & Shovels
Crowdfunding Overview
Crowdfunding is the collection of finance from backers - the “crowd” - to fund an initiative and usually occurs on Internet platforms.
With rewards-based crowdfunding, contributions are exchanged for current or future goods or services.
Kickstarter is the largest rewards-based crowdfunding platform
Kickstarter Stats
Over $1B pledged 60k successfully funded projects6mm unique backers 1.8mm repeat backers 14mm total pledges
However…Most campaigns failAverage raise is < $10k Platforms provide zero support
Success Stories
Value Proposition for Entertainment
Get the WINBuild and carry your audience Generate tons of positive press Retain creative control Raise money
Successful campaigns: Demonstrate consumer interest in your project Mitigate risk for the real investors Help you raise MORE MONEY
Tips for Successful Campaigns
Get 25% of target committed pre-launchIdentify 100 blogs to target for pitching Offer compelling, visual rewards Bigger network = greater credibilityKeep your audience engaged
There is no “free lunch”Aggressive friends and family outreach Facebook messaging is highly effective If you’re asking for money, you’re doing it wrongThe marketing is as important as the money Track your activity
The First 25%
Blog Outreach
Use the 80/20 rule to focus on best targetsAssign to a dedicated resource Evaluate the “4 Rs”
Relevance Readership Relationships Reach
Offer Compelling, Visual Rewards
Finished Product Rewards ExperiencesGiveaways and Keepsakes “Crowdsourcing” and Participation
Price rewards low enough to have fair value, but high enough to cover costs.
$25 rewards are the most common donations.
Bigger Network = Greater CredibilityPe
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Audience Engagement is KeyPe
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Higher Number of Updates Lead to Greater Funding
Success
Retargeting Crowdfunding Agencies “Owned & Operated” Campaigns
Industry Trends
Retargeting
Retargeting is a form of online advertisingthat helps keep your brand in front of bounced traffic after they leave your website.
Retargeting uses JavaScript code to anonymously ‘follow’ your audience all over the Web.
Retargeting helps you reach the 98% of users who don’t convert on the first visit.
Retargeting - Integrated Marketing
Crowdfunding Agencies
FilmBreak's CrowdfundX service helps creators to more effectively plan and execute crowdfunding campaigns.
We partner with our clients by providing campaign management, branding, graphic design, PR and marketing.
Our clients include filmmakers, celebrities, tech startups, for profits, and non-profits.
Sample Scope of Work
Beta + Launch Marketing Planning & StrategyCrowdfunding Planning & StrategyCrowdfunding Page Design & Development Collateral DesignPR & MarketingBacker Communications
Sample Team
Campaign Manager Graphic DesignerHTML/CSS DeveloperPR Expert Blog Outreach ConsultantSocial Media Marketing Consultant
Sample Graphics
Sample Press
Value Prop for “O&O” Campaigns
Creator has complete control Design and brand as desired Add plug-ins with ease Extend your campaign
Own your audience - and data Names and emails Facebook interests Keep your audience in one place
The catch: You’re responsible for 100% of your trafficCosts associated with a custom build
Crowdtilt API
The Future
The industry needs automation An ecosystem of SaaS tools will emergeCrowdfunding will become a prerequisite Crowdfunding will become an enterprise play
The Future
