Its Ty with Credit Suite, in this short video, we're talking about
crowdfunding. We’re talking about how you can use crowdfunding
to actually get money to grow a successful business.
So, first of all, you're going to start when you gets to crowdfunding to a
platform like Kickstarter, like Indiegogo. And these are
platforms that basically bring it together you, the borrower, the
person looking for the money and backers, private individuals who are
willing to back certain kinds of campaigns. Now, you've
got to make sure you read the fine print because what happens with these
is that there are two kinds of funding you can get from crowdfunding. There's
fixed and there's flex funding. Fixed funding from a place like Kickstarter
means if you don't raise the amount you set out to raise, you don't get any of
the money. So if your goal is ten thousand dollars and you raise nine
thousand five hundred dollars, then you don't get any of the money. Now,
flex funding offered through places like Indiegogo.
Will give you the money if you don't reach the entire goals. This is why
it's important that you read the fine print of these actual platforms.
Now, crowdfunding platforms will take a percentage of the donations is their fee.
It’s how they get paid, it's usually about five
percent. Okay, and you really need to make sure that you are delivering on your
promises. So there are what are called perks, which will dive into in a minute.
And crowdfunding platforms want to make sure that you're going to raise money
for a purpose. You actually use it for that purpose. If you're going to
offer people perks for actually donating to the campaign, they're actually
delivering on these perks. And if you don't, well, then that can have
all kinds of problems. There's even case history of states that sue
companies that misuse funds from crowdfunding
campaigns. They say they're raising it for something they use it for something
else. And then lawsuits ensue from the actual
states, so I'm not an attorney it's not legal advice.
The things to look out for, you've got to make sure, your honor, your promises
in these actual campaigns. Now, crowdfunding tends to work
better if you have a unique product or type or service. If you're a real estate
investor, for example, crowdfunding campaigns typically are not the place to
be. They was something really unique, really
different that gets a lot of attention. So, for example,
one of the coolest things I've seen on crowdfunding is a box that goes to the
top of your stairs that turns your stairs
into a slide. You open the box, it pulls out this plastic slide this plastic
slide makes your stairs into a slide. Pretty
cool, pretty different, pretty unique something that has the ability to go
viral. That's the kind of things that work really well
in crowdfunding campaigns, typically not straightforward type products like
something that is commonplace. Okay, so decisions you're going to need to
make how much are you going to actually try
to raise? You don't want to try to raise some crazy amount, but you
don't want to raise less than what you actually need. So
something to think about is how much money you actually need to get this
project off the ground and define the amount you're going to
try to raise to be somewhere around that amount.
Now, what perks are you going to give? So perks are like incentives for people
actually contributing to the campaign. So somebody gives one hundred dollars, they
may get this perk. If they get a thousand dollars, they donate, they might get a
different perk. And the other thing to keep in mind is
that virtually-delivered perks are better than physically delivered
perks. So if you have a campaign that takes off and all of a sudden thousands
of people contribute money, the last thing you want
to do is have to mail something thousands of times to somebody.
So I'm an author I have a book called Business Credit Decoded for example, if I
was going to make that a perk of the campaign,
I would want, again, the digital version. I get email way
easier than physically deliverable version that I had to actually
physically mail so something to keep in mind when you're actually
coming up, your perks. Now, some other things you want to keep in mind
is keep it simple with perks. You might want to have two, three levels,
but you don't want to have four or five, 10 levels of perks. If you donate this much,
you get this, this much you get this, this much you get this.
The more complicated you make it, the less people are going to be interested
in backing your campaign. So come up with perks come up with
incentives they get for actually contributing. So, for example,
if I'm going to actually create the box that sits at the top of the stairs and
it becomes a slide, well, then in that case I might want the
perk at the thousand dollar donation to be that you actually get the product.
So you're going to come up with perks. Keep it simple, but perks are important
because it's what incentivizes your backers to actually want to donate to
your campaign. Now, you also want to create some things
to make sure that your donors are excited, create urgency. Hey,
you know you got to get in on this because we only have a certain amount of
time to get the money raised to be able to make us products or not
create scarcity. Hey, if you get in, you could be one of the first ten or one hundred people
that actually get the product novelty, something unique, something
different. People like to be what are called early adopters. The first one out
in the public with things that's what people wait in
line at the iPhone store to get the first iPhone when it comes out.
So creating something unique and different and playing off that,
that they actually get to be first one to have this in their hands.
hose are the kind of benefits that the donors
will really respond to those the kinds of things that really get them
interested, invigorated into your campaign to actually want to
donate money. So you should really create a pitch video as well
make it interesting. Okay, you don't want to just have something someone has to
read with all the details. Show a video show the product you have
show what you have so far. You know, show him your progress once
you get donors. Keep them informed through videos and updates of the
progress of the campaign. Keeping engaged with your actual backers
is very important for this to successfully work.
You also really want to be gracious, be courteous. Thank everybody that donated
even if the campaign doesn't go through and you had fixed funding and you didn't
raise enough, you still want to thank everybody because
they may actually come in and contribute at a later, later time.
You also want to really make sure that you do two very important things with
the last two things that I mentioned here on the slide. First
of all, one hundred percent of all successful crowdfunding campaigns
I've seen people have the donors lined up before
they even start the campaign. So what happens is they line up really
they line up a lot of donors already that have money.
Then they run the project then all those donors start contributing.
Then platforms like Kickstarter see that it's popular and then they start
actually showing it to more people, and then it has the capability to go
viral. But virality of a campaign really has to do with two things, one, you
doing what I just said line up your donors in advance. Second
thing is you've got to share it on social
you can't just start a campaign on Kickstarter and expect it to go viral.
A hundred percent of all successful crowdfunding campaigns I've seen
have donors lined up beforehand, and then they're shared aggressively by the
person that has the campaign on social. They
line up a whole social network to share that campaign, to help it go viral.
Those two things are very important for a crowdfunding campaign to be successful.
Actually, those are the two essentials to make it successful
is to line up those donors in advance and make sure that they help you
share that campaign once it actually goes live.
So for more information on getting money for your business, give us a ring
877-600-2487 that's 877-600-2487. We'll do a free consultation to see all
the money and qualify, for now, see a fundable your businesses is
help you get your business credit reports and help you get access to a lot
of different unique ways to get money to grow your business.