« Side Hustle School

#1332 - CLASSROOM: Crowdfunding Basics & Best Practices

2020-08-24

Whether through Kickstarter or another platform, raising money and support through crowdfunding can be a great option—but only for the right project, and the competition is fierce. Learn 8 best practices in this episode, and get ready to work hard. 

Side Hustle School features a new episode EVERY DAY, featuring detailed case studies of people who earn extra money without quitting their job. This year, the show includes free guided lessons and listener Q&A several days each week.

 

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Show notes: SideHustleSchool.com

Twitter: @chrisguillebeau

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This is an unofficial transcript meant for reference. Accuracy is not guaranteed.
Have you heard the Jordan Harbinger show? Jordan produces insightful interviews with lots of really interesting people, including more cuban, Malcolm Gladwell and the late Great Kobe, Bryant Jordan, a great deal of quality and dedication to his work. I've known him for a while. Each episode on his show includes downloadable notes and exercises, so and it's the Jordan Harbinger Show check it out wherever you get your podcast hello, hello, greetings that what's up a welcome this out of snow school, my name is crystal about it. So glad you are here. This is the bi monthly classroom episode every other Monday. We look at a specific topic related to starting or growing your project. That would be your money making project. That's what it's all about, helping you achieve financial security, so you can do more of what's important to you
what do you want to be a full time, entrepreneur eventually or not, to be have no interest in that that's mine too, but everybody should have more than one source of income. That's the common value that unites us. Now, if you'd like to check out any of the archives from the classroom series just come on over to satisfy school dot com, slash classroom on that page, you can scroll back and take a look or listen. I want to encourage you to use your time well, so if some of these topics are basic, if you like, I do know that stuff, that's ok! You know you might need that particular episode. We still have two new stories are case today's each week, along with all the interactive new features, such as questions and answers and throwback Thursday,
now today we can look at the topic of crowd, funding, crowd, funding, basics and best practices. Why would you consider, when you're thinking about you're different ideas? Why would you consider a crowd bombing campaign? There are two pretty big, an obvious reasons. One is well, you know money, but it's not just money. It's also partnership, public relations, getting interest in your projects, overall support, etc. We're gonna put all those things that secondary reason, I suppose, but you not money and other forms of support. Now some projects are better suited for crowd, putting than others show- and I say this here at the top as well, because not every project can go this route. Ok, Kickstarter and the other platforms shall talk a bit more toward the end of this episode. All those platforms have their own kind of best practices in terms of the projects that tend to do very well. Ok and manufacture,
in ITALY, with ticks, tartar is the classic category, because with manufacturing, it's like ok, I'm and to make this thing, and we know that there can be some hard costs for this. We know that we want to mass manufacture it, which doesn't necessarily mean tens of thousands of units, but even a hundred units are more. The point is that there are hard core, it's not a hundred dollar start up or zero eroding start up. It's actually gonna cost something, and even though, cost something its relatively easy to show the path to completion can say: ok! Well, I need this much money. If I get that money, then you know to the best of my knowledge. Things could go wrong, of course, but to the best of my knowledge I'll be able to make this thing. So that's why I need the money and people who contribute to putting campaigns they're, usually on his backers. So you think of your supporters. Are backers you're contributors, they like the idea of being part of making something which I think is one reason why anything that you're, manufacturing or actually putting too their assembling, etc. Why that tends to go over well with this model, that's not the point
option other plenty of other examples, of course, but I just think you know if your goal is to to write a blog or its content based kind of side, hustle you're trying to establish yourself as an authority in a particular topic or focus like a lot of our stories. Take on that model or crowd. Funding is probably not the best avenue for them to follow. Ok, so these days, because crop hunting is such a huge industry of its own. Now these days there are consultants who advise crap hunting campaigns. They can actually manage your campaign for you, without getting into a ton of detail cuz, you know not. Everybody listening wants to even go this route, but I think it could still be helpful to have a little bit of knowledge of it. I'm going to give you a few important tips, so here are a few, and things to know if you might be considering a crowd phony campaign or if you're, just trying to broaden your knowledge. I've got eight tips here, but you gotta go really quick, ok, so eight tips in a short period of time number one be prepared to study up. If you really want
this right. This is something that you need to devote some time to. This is not a thirty minute study session situation. It's maybe authority, today's situation over and over for a couple of months and so number two, these kind of two go together the first to give yourself a long time frame if possible. Now I m all about doing things as quickly as possible, encouraging people to get it first prototype that first customer that first sale whatever it is. You know in thirty days or less often, but to properly do a crowd funding campaign like if you really want it to go well, the longer timeframe is gonna help you, first of all to do all that. Learning that you need to do and to do all the preparation which goes into the most successful crowd, binding campaigns, number three: you want to line up early support when that campaign does go live. You want your friends, people that have expressed interest in the past. Anybody that you're connected to you want them to make their donations early, and you want to tell them in advance. Actually don't wanna just like put the can
hang out and say hey. I just watched this thing idea what you're going to have a number of people who are prepared on day one. You know at twelve p dot m whenever it goes, live to go and make their contribution right away, and that momentum is what's going to enable the campaign to be seen by a lot of other people and the social proof of the donations is going to encourage more donations or contributions, let's say because their often getting something in return, and that leads me to number four Kickstarter and the other platforms to do this. You often have a way to offer incentives. Okay, if you contribute ten dollars to get this, if you contribute one hundred dollars to get this, give a certain number of tears and often it's limited by okay. Only ten people can get this item. You know only a hundred people can get this item etcetera, so there's a whole process of figuring that out. That's why I'm just miss
carefully, consider incentives and tiered rewards. This is one of those things where, as you do that research you're gonna get more information about the best way to do it. But the point is there not just random, they should be carefully considered. Number five communicate often sent updates post updates email if it feels like you're over communicating great keep doing it needs on. You have I'm kind of update make sure people hear about it if some of them get a little bit on the way. That's ok you're willing to take that hit because you believe in this project so much. I think that's the key point you're not doing this. All the time, probably never done it before since this thing that you ve worked on for a long time- and you really want to make sure people hear about it- number six Most important days of the campaign are the first and last day I've already talked about why that first day is so important. The last day or what's in the last couple of days, the first couple of days, the last couple of days. That's when you going to see the majority of your contributions, ok,
We definitely want to make sure you're not over scheduled on those days. You gotta make sure your available. If there's any pushes you ve been saving you, you know you deafening, went to get those out in that last final period, number. Seven, having a good video is key, so video is essential at this point. You need to have a trailer of your project, whatever it's going to be and you can just do that on your own or you can get some help. I would encourage you like if you, if you do have some resources you're gonna put towards this- definitely try to get the best possible video that really does go a long way with success. The crowd, putting campaigns and number eight sets, or should it be quick number eight set a real goal and take some kind of risk and, I say said a real goal: you're like well. What does that mean? Because every crop binding campaign has a goal? That's true, but I think these days, a lot of people are afraid, and so they set their kickstarter goal,
Really really love and tat way. It gives him this boost to being able to say. Oh, we we met our goal in a short period of time, which you know his is good in some ways, but if the goal is really low, like ok, you met a really local. Your goal was to raise twenty dollars per year project. Can you get it that's great, but to me I'm always impressed. I guess when, in all its this person needs to raise fifty thousand dollars or whatever the number is it's all relative. They need to raise a significant amount of money, and if they don't get this money, they won't be able to do the project, which is how Kickstarter.
Like I started and now they're a variation where campaigns can still receive the funds, even if they dont technically achieve their goal. But I, like the risk factor, I think its bold in it just kind of issues. This challenge to potential backers and raises the stakes shown a big fan of taking some kind of risk and setting a roll call are. Those are eight crowd plenty, basics and best practices, we'll take a quick break and we come back when I talk briefly about Kickstarter versus everything else like go, find me, indigo go, etc. We give you three episodes from the archives of some pretty major kickstarter other crowd, funding campaigns for those who are interested in going check. Those out Side school is brought to you by our long time. Partnerships station really appreciate them, supporting us for three years and counting as we are all adapting to this changing world. So many changes all the time
I'm going to be buying more stuff online, but never before. So, if you are an e commerce seller, if you want to be you want to ask yourself, are you ready to meet the demands of our new delivery culture right now? Our listeners can try Shipstation free for sixty days when you use offer code hustle get started at shipstation dot com today, click the microphone at the top of the homepage and type in hustle, that is shipstation dot com into offer code, Hustle Shipstation make shift happen
so I mentioned that, in addition to Kickstarter, there are a number of other platforms that do crowd funding, you're, probably familiar with a couple of them. I just talked about indigo and go find me briefly with those platforms, and I said there, many others that are just the three major mainstream ones. There's also some for certain industries, like as a crowd funding platform specifically for food projects, and I've seen some for publishing projects and others, but the main difference between Kickstarter indigo and go find me is that at least traditionally, with Kickstarter was a little bit harder to get approved and you had.
At a goal and which, if you didn't meet that goal, then you wouldn't get any of the money, whereas with indigo and go find me, you know I didn't matter necessarily, and the other thing is that go find me as often set up for social causes or just something that somebody happens to be fundraising for SA necessarily for their side hustle or for their small business. Obviously, as part of that study session, you gonna undertake, which is not just one session. As I said, there's gonna be a fair amount of work. You're gonna go out and see. Ok, what might be the best part.
Form for me. Where am I going to have the most success at the most visited, and so on now, if you're interested over the years, we have featured a number of projects that have used crowd funding some with pretty significant results from an ascended to three of them. But there are others. If you just want to go to the website, you can search crowd. Funding, Potass, paging you'll see a bunch of them, but but here are three: it stood out to me number. Forty. Eight episode for await architect changes commuting one pocket sized book at a time that was fifty thousand dollar project and I think, actually went and raised close two hundred thousand dollars if I'm not mistaken, episode. Six three, seven. Six hundred and thirty seven Jujitsu instructor pins down mobile workout tool. I forget exactly how much that guy raised on Kickstarter, but the thing that I was impressed with was there were some problems in the manufacturing and he actually flew to China to see the factory,
soften sort out the issues that was six hundred and thirty seven and lastly, episode nine twelve, nine hundred and twelve bendy straw id at races, one point: eight million dollars on Kickstarter. So never how much money that, when raised away, I just told you again episodes wait, six, three and nine one to do this, it's not easy. Let's just be clear like to do this. Well is not easy, but there's a path, and it looks like manufacturing a product overseas in general or writing a book, but set up. There are easier side. Hustles. Okay, there is side hustles by if it's what you really want to do. This is your vision, you excited about something more, don't let anybody say you can't do it. You know, because there is a path, so, as we come to our assignment for the week, I know that not, he's gonna be doing crowd funding and even if you are you're not necessarily doing a campaign this week, so our assignment is a bit different. The assignment is to think about something that is caught,
new you stress or weighing down something that is burdensome and then consider. If there is something small you can do to remove it, something small or big. Let's say that you can do to alleviate some of that stress or pressure. Whatever is bothering you. Can you take even that small step towards making it better towards getting it out of your head? So you can focus more on it things that are important to you. That's my challenge for you, but I promise I'm gonna. Take it upon myself as well. Again, you can read notes for this in every classroom episode this year at sight of some school dot com, slash classroom. Thank you! So much for listening, much more is coming up. My name is critical about this is cycles in school from the onward projects.
Transcript generated on 2020-08-24.