Crowdfunding 101: The Basics

Facilitated by Kristine Maltrud

Crowdfunding Strategy

Before launching a crowdfunding campaign:

• What PROJECT are you raising money for? (a film, a piece of sculpture, album release, etc.)
• How are you raising money via other means?
• WHY are you choosing crowdfunding? (Don't say, "Because it's easy...")
• Are you prepared to fully commit yourself to a campaign (time, energy, enthusiasm, skills...)?
• Have you done your research on what platform fits you/your project best?
• Have you planned how long it will take for your project/campaign (planning, execution follow up)?

Planning

Goal

• Does your project have a clear goal that you can clearly and specifically define?

Money

• Can you clearly state how the money will be spent?
• Have you carefully planned and budgeted the exact amount you need, including reward costs?
• Make it easy for people to donate: checks, PayPal, credit cards (use smartphone hardware like Square).

Team

• Don't go it alone! Create a team of support, including technical support (e.g., an editor for written content, someone to shoot and edit a video, etc.).
• AND don't forget about emotional support when you're biting your nails or feel too tired to go on...

People/Fans

• Who is your audience of fans/funders and how do you plan to reach them (social media? Text? Email? Phone? Events?)?
• How many social media followers do you have and how engaged are they?

Rewards/Incentives

• Minor incentive/reward: people are not donating to receive a reward. The incentive to donate comes from a supportive/emotional/social place - the reward is secondary.
• Major incentive/reward: people mainly donate to get a reward, small or big
• Plan your rewards accordingly in terms of time and money (for example, if a reward is to receive a sketch related to your art show).

Images

• Create campaign images that are compelling and professional, as they'll most likely be all over the campaign platform, social media, etc.
• Create a video that's no longer than 3 minutes - doesn't need to be professional, but needs to tell your story and appeal to potential donors.

Strategy

Email

• Use an e-newsletter service like MailChimp or Vertical Response (both are reasonable re: cost) to professionalize your email, guarantee delivery and deal with spam and unsubscribes.
• Email regularly, but not too often.

Facebook

• Create a Facebook event for your project.
• Create a Facebook page for your organization or your creative business.
• Spread the word via your event, page, and personal pages of everyone on your team. (note: if you use personal pages, be VERY careful about other stuff that you post!).

Twitter

• Create a # (hashtag) for your project/campaign.
• Tweet, follow, reply, mention - and KEEP IT UP!

Website/Blog

• Keep it updated with new content and updates, including photos/videos about the process and your experiences (people love behind the scenes access!).

Word of Mouth

• Talk to everyone you can. Remind people and keep them updated throughout the campaign.
• Remember business that you frequent/know and think of incentives that would engage them.

Other Media

• Create project/campaign business cards or postcards, and include a QR code that links to your crowdfunding campaign site.

Updates

• How is your project unique or special?
• What are you offering as incentives/rewards?
• Who are you/who is on your team?
• Create an update calendar and publishing matrix so your updates are well-timed and professionally delivered
• Create a tagline and/or logo for your project
• Have others retweet, share, email their friends, etc.
• Consider in-person events like parties, partnerships with businesses, etc.
• Most campaigns have a final boost of funding, so keep it up and don't lose heart! Final and intense pleas are a-ok!

Other Resources

• Excellent link describing different crowdfunding platforms/websites: www.squidoo.com/crowdfunding-websites

• A great ArtSpark blog post from a singer/songwriter who successfully raised money on Kickstarter: art-spark.org/2012/02/a-kickstarter-rollercoaster-ride/

• PC World article on preventing "Kickstarter nightmares": www.pcworld.com/article/2013400/6-kickstarter-nightmares-and-how-to-prevent-them.html

• Foundation Center webinar on fiscal sponsorship for artists (who aren't nonprofits): foundationcenter.org/getstarted/training/webinars/fiscalsponsorship_webinar.html

Quick Comparison of Kickstarter and Indiegogo

Elements	Kickstarter	Indiegogo
Overall Look	Neat, crisp	Neat, but lots of projects listed on landing/home page
Name Recognition	High	Medium
Incentive	High: ALL OR NOTHING	Medium/low: depends on campaign
Fees	5% + 3-5% for Amazon	4% fully funded 9% less funded
Length of Campaign	1-60 days	1-60 days (full funding) 1-120 days (flexible funding)
Payment	Amazon payments (you're not charged until the campaign is successful/fully funded)	All major credit cards and PayPal
Approval	Requires approval	No approval required (although projects are reviewed)
Type of Campaign	Project oriented, focused on creativity - does not fund operating expenses	Flexible - does fund operating expenses