- Crowd Funding -
How to Maximise Crowd Funding Effectively
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According Lambert and Schwienbacher(2010), "Originally, crowd-funding has been used in the entertainment industry so far (especially music and movie), a few initiatives have been undertaken recently in other industries such as journalism (Spot.Us), beer (BeerBankroll), software (Blender Foundation) and fashion (Cameesa). Even more surprising, the amounts that have been raised through crowd funding have continuously increased, reaching more than £ 1 million by Trampoline Systems for the financing of the commercialization stage of their new software. " In fact, it seems crowd-funding has done a good work for the campaign, especially for the ones that can get audience attention while promoters are still in the financing stage. In a word, it is really important to know the way to maxsimise crowd-funding effectively. Here are some suggestions from professional crowd funding organizers and promoters.
Firstly, promoters should set a realistic goal. Before independent producer want to do a project, it is really necessary for them to do research and find an interesting topic or theme. Then set a reasonable funding. Sheri Candler, a marketing and publicity specialist for filmmakers, has recommended on her blog, “Try raising $5,000 and see how you do,” noting that many successful film projects have a goal that’s below $10,000.3. It means it is better to find influential people to help promote the campaign through their social network. Like IndieGoGo Rubin said the promoter should maker sure 30 to 40 percent of your goal before you publish on the crow- funding pIatforms to let strangers donate. (Irvine, 2011)
Secondly, it is better to have a good introduction video on the campaign page, which can be more attractive and get donators’ attention. Kickstarter’s co-founder, Yancey Strickler says “every project should have a video, 80 percent of projects in Kickstarter website have one. Broderick, a noted distribution strategist, added that many campaigns have been successful because the video has personalized the campaign by including the filmmaker. He highlighted the video for I Am I as an excellent example: Jocelyn Towne, the director, guides the viewer through her apartment in a single four-minute take, using the producers and the stars in various clever gags.(Irvine, 2011)
Thirdly. The rewards are also important. “The $20 and $100 reward levels are the key reward levels,” Broderick explained. “The creativity in the rewards is important.” For instance, Happy New Year has done a good job in this part. Michael Cuomo, lead actor and producer on Happy New Year, helped attract $26,390 in contributions on IndieGoGo, he set reward levels named after military ranks, echoing the film's theme. This was an intellent way design the reward, which can take various forms, including cash, bonds, stocks, profit sharing and pre-ordering of products. While they could get personal favors from friends, Manning and Cuomo wouldn’t have been able to turn that kind of support directly into funds. So they used it as an opportunity to leverage non-monetary support. (Irvine, 2011)
In addition, project promoter should be active in the project promotion during the whole time. Cuomo reiterated this sentiment, saying their campaign “was a full-time job.” His team made sure to write thank you letters within 24 hours. Regular updates can also prompt much greater interest and participation. Promoter also should make full use every social network platforms to distribute distribute and disseminate information about your project. Set up a facebook page, a twitter account (or do it through your personal account), and a blog/website for the project. This helps show fans you’re serious, and gives you a place to archive everything that happens during your fundraise. To use multiple entry points presents the concept of transmedia: link on facebook, a retweet, a published article, etc.(Irvine, 2011)
Furthermore, it is better for project owner to promote the specific community who has the interest in the project because core audience can get fans to promote, then they can probably expanding it into a larger audience.
Finally, shorter, more intensive funding campaigns have proven more effective than longer-term campaigns. It is necessary for promoter to look at the Time-Backing graph, it shows the process of funding raising process. For example, the Kickstarter post looks at the pace of donations over time, and what it calls “the trough” (Mod called it the “dead zone”). (Benenson, 2010) Mathew Ingram(2010) says,
“After an initial flurry of donations when a project is first posted to the service, almost all projects see a sharp drop off in contributions or pledges, followed by a bumpy series of much smaller amounts, and then a pickup as the project gets close to its deadline, with a sharp jump just before the end. Kickstarter also looks at the optimum duration for a project funding, and found that the bulk of successfully funded projects chose a 30-day financing window, while unsuccessful ones are more likely to choose longer periods.”
It is really like Christopher Salmon says, “Thirty days is like 30 years on the Internet.” That is the biggest merit of online promotion.