In addition to launching ZeroHour’s first product (or I should say as a direct result of its success), I’ve been consulting with several crowdfunding campaigns this year. Crowdfunding has really developed into its own industry, led by the structure Kickstarter created in 2009: anyone with an idea for a project can create a site with a detailed pitch, take pledges, offer thank you rewards, send updates, answer questions/comments, and set an “all or nothing” funding goal that has to be met by the campaign end date.
With increasing public recognition, creators have rushed into the system with the promise of easy money, and campaigns have had to up their game with professional design, slick videos, inspirational calls to action, and a more transactional emphasis on rewards. There’s been blowback on a number of fronts: creators who don’t deliver their promised rewards, a misunderstanding that these are retail transactions instead of backers taking a chance on an investment, and of course the recent Potato Salad Kickstarter that skewered every crowdfunding technique in the book. It was brilliant, but also meant crowdfunding had become cliche.
In short, it’s becoming increasingly difficult to launch a successful crowdfunding project. The actual work is much harder than it looks, particularly for creators who have no track record with production or manufacturing and delivery of rewards. Instead of being funded by a bank or investors, there may be thousands of backers involved, who have access to very public and social commenting features to question your process. And the volume of campaigns has reached a point where launching strong and staying visible is critical, almost like the opening weekend of a film release.
The teams I worked with were both raising funds for film, a popular Kickstarter category frequented by celebrity projects like Veronica Mars and Zach Braff’s Wish I Was Here. Film is already in a tougher spot with crowdfunding because consumers put a lower value on the “reward” of entertainment than on products. That means the backers consider their support as more of a donation and have to be really inspired by the concept.
The best way to drive this kind of motivation is with a wide network of friends and a targeted marketing and media plan. Not quite as easy as “post your idea and cash in,” but sadly I have to report I’ve seen the difference. One of my projects did not make its funding goal, and we had done a lot of things right: sharp page, strong video, inventive rewards, and even a fan base for the topic. But the network simply wasn’t large enough, and they did not want to invest in a basic PR plan for launch. They were also guided by the same unshakeable optimism and confidence of every entrepreneur I’ve worked with: if I build it, they will come. When they didn’t come, we scrambled for attention over the next few weeks and only started gaining media traction when it was too late.
My other project creator laid a lot of groundwork on his own, developing media and film organization contacts over a period of one year before launch. One year! Even though his network of friends was somewhat smaller, he had the help of his contacts to greatly amplify and sustain his message. We continued to follow through with creative promotion until the very last day, and it succeeded.
So there really are no shortcuts. Having spent the past year deeply involved with crowdfunding, I can also say that it is one of the most satisfying accomplishments to influence a group of people who don’t know you to believe in your vision. It can be done, but I do believe the most organized, connected, media/viral-friendly campaigns will have the best chance come out on top.
