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Posted on September 19, 2017 By Bob With 0 comments

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Posted on September 15, 2017 By Bob With 0 comments

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Posted on September 5, 2017 By Bob With 0 comments

Crowd Funding – Setting a Target

iPledg - Logo - Low-ResolutionHow much is too much? What is the right amount of funding to seek in a crowd funding campaign? And am I ready to start my campaign, given the size of my crowd versus the amount I wish to fund? These are all questions that potential crowd funders ask before starting a campaign. All valid questions, but experience has shown us that there are some guidelines as to how much you should ask for in a campaign, and how much might be too much to shoot for.

Firstly, a funding target is not an arbitrary figure, but a carefully calculated and researched amount based on the outcome or deliverables of the project. If your project is to build a widget, the cost to do so should be worked out as close to the final amount as possible. This then gives you the initial funding target for your campaign. Perhaps this amount can be broken down into stages (e.g. the cost of design, the cost of tooling, the cost of manufacture, and the cost of distribution), and if the overall funding requirement seems like too much of an ask, then perhaps the stages can be funded independently rather than trying to bite off too much in one go. This can be quite a strong strategic move, as those who fund a successful campaign will often go on to fund subsequent campaigns by that same campaign creator.

The sweet spot for pledge model crowd funding sits between $1,000 and $30,000. That is, most campaigns that get full funding sit between these amounts. The average size of a successful crowd funding campaign in Australia sits between $6,000 and $7,000. When working out a funding target, the second step (after costing the project to be funded) should be to take a moment to reflect against these numbers, and this will tell you straight away if your funding target is a big target, average, or quite reasonable.

Once you assess whether or not your target is a large one or reasonable by general crowd funding terms, you need to then consider how achievable it will be with your current level of contacts and networks. The best way to do this is to add up all the people with whom you have direct contact – your friends, email contacts, social media followers and connections, etc. Once you total that up and remove the double-ups, take just 10% of that figure, as typically just 10% of your network will pledge to your campaign. If you take into account that the average amount pledged is $50, you should multiply this by the number you arrived at (10% of your crowd) and this should give you a rough draft as to what figure you should aim for. If the amount you arrive at from this exercise is considerably less than your funding requirement, then you have 4 options:-

  1. You should perhaps aim for a lesser amount. What is it you could fund with fewer funds? Again, could you fund part of the overall project, and then go back for more once you successfully met your initial target?
  2. It is too early for you to start your campaign, and you should spend more time building up quality, relevant, and engaged contacts so you get closer to the number you require based on the exercise above (10% of your total network pledging and average of $50)
  3. You could perhaps come up with a schedule of vigorous and robust marketing initiatives, some of which would need to be done prior to the commencement of your crowd funding campaign, while other activities would need to be scheduled to occur early in the funding timeframe to give the campaign sufficient momentum for others to want to join in. You need to remember that you need to get to 25% of your funding target early in the campaign before total strangers jump on board. Think why people would want to back your campaign, and build your campaign description, promotion and rewards (inducements to pledge) to all be in alignment.
  4. A combination of the above initiatives

Setting a funding target for a crowd funding campaign needs you to assess where your target sits against common practice, and then is less about the amount you want to fund, and more about how your target relates to the potential crowd you can reach. Whilst a crowd funding platform will amplify your message, these effects will only come into play once you have established your own initial momentum. Set a realistic target in relation to the size of your crowd, and have a plan to engage them early, if not before the campaign begins so you have immediate traction. Follow these rules and you will maximise your chance of crowd funding success.

Posted on August 25, 2017 By DrDion With 0 comments

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Posted on August 7, 2017 By Bob With 0 comments

Crowd funding – The Power of Knowledge

iPledg - Logo - Low-ResolutionThey say that a little knowledge is a dangerous thing. In the case of crowd funding, perhaps a little knowledge is not so much dangerous, but it can waste time as well as being rather disheartening when a campaign is commenced with the owner not going in with their eyes open, and then not achieving the desired outcome. But knowledge is power. Understanding your crowd, how to motivate and communicate with them, as well as understanding what crowd funding is all about can make the difference between success and disappointment.

Firstly, it is important to understand what crowd funding actually is, and the mechanics of how it actually works to truly appreciate the roles of the platform and the owner of the campaign. A common misconception is that the platform raises the funds, and that the campaign owner need simply post a campaign and then sit back and watch the money roll in. The platform provides a foundation on which the campaign is hosted, and which simplifies the pledging and payment process, as well as allowing the campaign to be easily shared. Some even provide a structure and coaching to campaign owners’ campaigns. It is up to the campaign owner to then find the initial supporters and to get the early momentum behind the campaign. Only once the campaign has sufficient momentum (usually around 20 – 25%) will the activity, promotion and marketing of the platform actually kick in.

Shooting an arrow aimlessly into the air is unlikely to yield any great prize. The same can be said for crowd funding. It is essential to identify your crowd – to whom is it that you need to promote and appeal? Understanding what motivates them and how you engage with them are paramount to gaining their support (are they motivated by the outcome of your campaign e.g. to save a species of turtle, or are they motivated by getting their hands on a cool, highly sought after reward?). And it’s not just what inducements you need, but how many people do you need to appeal to in order to achieve your target. Working on the basis of just 10% of those in your networks will actually pledge, and given that the average pledge is $50, you will need to work out what will need to be the optimal size of your crowd before you begin to promote your campaign.

The advent of the Internet has made everyone a potential broadcaster. In one sense, this is a good thing, giving everyone a voice, but in another sense, it has created a noise on the ‘web that can be a challenge to cut through. Facebook, Twitter, LinkedIn and the like are all great social media tools but using them effectively to build and audience prior to starting a campaign, then using them efficiently during the life of a campaign can be a challenge. Drafting an effective communications plan before your campaign is exposed to the crowd can be tricky – how do you blend social media, with traditional media and get all of the channels leveraging off each other?

The wheel has already been invented, so it is a matter of finding what has worked well for others who have worn a path over the ground you plan to tread. When it comes to writing a campaign description, rewards, and a campaign video, it is unlikely that you will not be able to find someone who has already run a successful campaign in the same sector. These previous campaigns make for a perfect temple that any astute campaign owner can then meld to suit their own needs.

When the sun sets on any campaign, one of two results will have been achieved, success or unsuccessful. Either way, there are a number of activities and actions that should be undertaken. How do you best thank people, or utilize the information your gathered along the way? How do you go delivering the rewards, and what is the best way to communicate any changes to your plans and schedules? And if you are going to have another go and either raise more funds or have a second attempt to raise the funds you missed out on, what is the best plan for starting again and re-engaging?

There are many questions raised in this blog piece. The answers are found in some of the great seminars, workshops and online courses like this one by successful crowd funding marketer, Eli Regalado. There are informative blogs dedicated to crowd funding that speak from a position of experience, knowledge and authority such as the iPledg Blog. And there are excellent websites at the core of the industry like www.crowdsourcing.org which provide infographics, statistics and case studies of the latest successful crowd funding initiatives.

Use the resources, gather the information, and use the experience of those who have successfully walked before you, and you will be well on the way to achieving your crowd funding goals.

 

Posted on May 20, 2017 By DrDion With 0 comments

Crowd Funding – A Legitimate and Noble Pursuit

iPledg - Logo - Low-ResolutionOne of the most commonly asked questions about crowd funding relates to the safety of the pledges made. “What stops the campaign owner simply running away with the funds, and not delivering the rewards?”. The simple answer until now has been “Nothing…….Other than the long arm of the law”. The world of crowd funding has always been built on an idealistic and trusting platform of community spirit, but a number of recent cases have added comfort to all potential backers by showing that most governments will not tolerate crowd funding theft.

Crowd funding is conducted on a medium that has perhaps the best memory of all things – the internet. Given that most of those who indulging in either raising or pledging funds to campaigns are somewhat tech-savvy, the internet is a great place to research campaign owners, and to get feedback about the campaign and its proponents. The more responsible intermediaries (crowd funding platforms) will have in place some form of probity so that the money trail can be tracked, and the individuals who conduct campaigns will have to prove some form or legitimacy as to their identity, if not their bank account and location.

The very essence of crowd funding also has its own built in protection mechanism. The success of crowd funding is based on a campaign typically receiving its initial validation and support from those known to the campaign owner. It is his “first tier” that legitimises the campaign, and creates a touch point to a broader community who may not know the campaign owner themselves, but through the actions of the first tier, the “second tier” or “friends of friends” become involved. From there, it is the broader community (“third tier”) that buy in once sufficient momentum and validation have been established.

But just as there will always be methods for protecting backers, there will always be the exceptional few who try and circumvent and rort the system. It is in such cases that legislators around the world are now showing the strength to pursue offenders and send a message to the industry that fraudsters will not be tolerated.  The Washington State Attorney General’s office ordered monies to be repaid by the Asylum Playing Cards campaign on Kickstarter. Whilst the verdict went virtually undetected by media outlets, it was the first case of its kind to be resolved under the Consumer Protection Act. This comes just one month after the Federal Trade Commission settlement of its first crowdfunding fraud case in which they ordered Erik Chevalier to repay the $122,000 he received from 1,246 Kickstarter backers to launch a board game that was never produced.

Even before iPledg launched in 2012, founders of the platform engaged with the regulators – The Australian Securities and Investments Commission (ASIC), The Australian Competition and Consumer Commission (ACCC), and the Department of Fair Trading – to see what was permissible and required under law. Whilst, at the time, crowd funding was pretty much unknown and the laws around what could and could not be done were yet to be clearly defined, the emphasis was always on upholding the utmost in probity in protecting all concerned, especially the backers or those pledging support to campaigns.

Crowd funding is not a perfect system, and not without risk. However, by virtue of the community nature under which it operates, given its conduct is carried out on the internet with users that are relatively tech savvy, and recognising the way in which the regulators in most countries are treating any breach of consumer law, crowd funding continues to be one of the safest forms of commercial activity on the planet. Statistically, the incidence of fraud is rare given the volume of transactions, and you are more likely to be defrauded by traditional retailers or door knockers than by crowd funding campaigns.

Posted on April 14, 2017 By DrDion With 0 comments

Crowd Funding – the Basics of Capital Raising

iPledg - Logo - Low-ResolutionCapital raising, whether it is by way of equity or by pledge, all starts with a great business or concept. Built it and they will come – as long as “it” is attractive, functional, and relevant. From that, the journey of where you have come from and where you plan to go needs to be cobbled into a good story, and then delivered as a compelling sell to an engaged, supportive and enthused crowd. Get these right, with each of these steps seamlessly integrating into the next, and you have the formula for a successful funding campaign.

Getting the product, service or business model right is like having a solid footing on which to build a house. A less than solid footing may allow you to make some progress, but it will eventually crumble under the weight of scrutiny and market pressure. “Pivoting” – making changes as you develop your concept in response to market feedback and new findings – will allow you to better fashion your concept before you go to market. Doing your homework will ensure you know what the market wants, and that your product, service or company will satisfy or solve that need. Understanding your market allows you to fine tune your concept so that you deliver the market what they want or need, in a way that they can easily uptake your offering. And ensuring you present the pathway forward in a well considered and articulated manner will allow you to take the concept to market.

Once you are confident that you have the right product that people will want, and you are able to demonstrate that your assumptions are substantiated, you will need to start to prepare and build your “crowd”. Start to engage them, not only in your capital raising, but in the product or business itself. Again, if they like what you are doing and you can build enough excitement, you won’t need to ask for investment or pledges – your crowd will be beating down your door to be part of your venture! The internet has made it easy to find like-minded individuals and organisations with whom you can communicate about what you are doing, and to build these followers in to tribes that will not only come on board, but endorse or advocate your efforts, business, and product.

Once you have built your tribe, you need to maintain engagement as well as continue adding to your crowd. Communication is the key. Let them know of your progress. Keep them engaged by telling them of your successes, milestones reached, and the goals you have kicked. Don’t whisper, but shout it from the roof tops and let your crowd hear it. And don’t just talk at them – invite them to get involved and start a conversation. Again, do it publicly so other members of your crowd feel comfortable to get involved, and those outside feel compelled to join in on not just the discussion but to become part of the group.

Your ultimate success is highly dependent on you. 21% of all funding campaigns raise nothing, not a single dollar. This is due the issuer or the project owner failing to engage his first tier or those who know and love them the most. It cannot simply be left for the platform or someone else to bring on funders. Initial momentum for any campaign must be driven by the issue or campaign owner. Before any funding campaign begins, the project creator or issuer needs to have investors or supporters ready to support from the get-go. A movement is created by momentum, and momentum needs to be created early. Many funding campaigns run out of steam because support is too slow in coming. Get supporters and investors on board early, and let the world see they you have something about which they should take note.

Once momentum has begun, keep it going, and recognise there are now a number of priorities to support the main goal of achieving your funding target. You need to motivate your initial supporters or investors to invite their friends and contacts on board, telling them about the great thing they have done in supporting your business, product, or venture. As each of your crowd will have a crowd of their own, this “second tier” represents a much larger audience than you will have reached by yourself. Then there is also the constant task of keeping your total supporter base engaged, as well as growing the number of members of your tribe. Keep your follower numbers growing, keep your tribe focused and involved, and ask your supporters to become advocates for you.

Capital raising in any form involves work – teamwork. You need to sustain energy to maintain focus on building and driving our team towards your funding goal. If your product is largely built to truly satisfy the requirements of the market, and you have done your homework correctly, then you will not have to spend much time on your product as you do your capital raising. Build your immediate followers (your “first tier”) and get some early runs on the board. From there, communicate your successes and ask your first tier to engage their contacts (the second tier). Create noise, momentum, and give people a reason to want to have a look at what you are doing – at your business as well as your capital raising efforts. For the duration of the campaign, never give up, keen going, and remain fast, flexible, and fashionable until your goals are achieved.

Posted on March 9, 2017 By iPledg With 0 comments

Crowd Funding – Underwriting Your Events

iPledg NewFor anyone who has ever run an event of any description, they would understand the nervousness of underwriting ticket sales, hoping that the revenue generated would cover the cost of holding the event, and perhaps even make a small return. Costs can be quite considerable – venue hire, staffing cost, transaction expenses, the cost of the “talent”, as well as catering can all add up quickly. So how does an event organiser ensure that they will not be left holding the can if ticket sales do not cover costs? The answer may well lie in Crowd Funding.

The typical scenario in organising an event is to commit to the costs, and then to start selling tickets. The stresses ramp up as the organiser gets closer to the date of the event, yet revenue from ticket sales still sits short of the income required to cover costs. Many panic at this point, spending more money on promotion, thus raising costs, and discounting remaining tickets, thus increasing the amount that need to be sold to cover the expense of the event. It really is, in many cases, an example of biting off more than you can chew and then chewing like crazy.

Crowd Funding can totally change the way in which events are now run, ensuring that ticket sales meet the requirement to cover costs before a commitment is made to holding the event. It also engages those who purchase tickets to then become advocates for the event, to ensure that the event does proceed as planned. Consider this…..

Imagine you are planning an event, perhaps a concert. You need to commit to venue hire as well as paying your performer, the staff, and food and drinks for the event. Your total costs are $10,000 (OK, I didn’t say that the performer was an A-lister). If your average ticket price (across the cheap seats right through to the front row) is $100, you will need to sell 100 tickets before you no longer have to reach into your own pocket to cover expenses. If you follow traditional protocol, you are committed to holding the event as soon as you start to promote it, no matter if you sell the required 100 tickets or not. The more you fall short of the 100 ticket mark, the more pain you will incur.

But the whole scenario changes if you run the sales process through crowd funding….

You would set up a crowd funding campaign, the project being your concert. In the project description you outline all the details of your event, the performer, etc. You also explain that the campaign, as with most crowd funding campaigns, is conducted on an “All or Nothing” basis. That is, the campaign will only transact and the project will only proceed if you meet or exceed your funding target in the campaign timeframe. Your funding target is then set at the amount which will cover the budget to hold your concert, plus a little more to cover the costs of a crowd funding campaign.

Rewards for such a campaign are relatively easy to then put together. Entry level rewards could be a simple note from the performer, sent directly to those who make a small pledge. Ticket sales are the most obvious rewards, with the various reward tiers being matched by the various levels of ticket pricing. Stretch rewards (rewards for higher pledge amounts) could be made up of corporate recognition, backstage passes, or even recognition or participation in the show itself. Such creativeness takes some of the pressure off ticket sales, as you come up with more rewards to offer which represent alternative and additional income streams.

Promotion of the crowd funding campaign is then done exactly as you otherwise would have done for the concert itself, with two far greater benefits. Firstly there is the benefit of having more on offer than merely ticket sales. You have all the other rewards tiers which you can spruike about, so there is a broader story with which to hit social media, moreso than just the event itself. Secondly, there is the urgency of the concert not proceeding if the funding target is not reached in the campaign timeframe. This is where you can not only build some urgency around ticket sales or pledges, but those who have purchased tickets will also become advocates for you (especially with a bit of gentle prompting)  as they tell their crowds to jump on board and pledge, for if other don’t they themselves might miss out due to the event not proceeding.

In the event that the funding target is not reached, it will mean you have not sold sufficient tickets to cover your costs. In this case, the pledges would simply dissolve (you would not have to issue refunds as the pledges would not transact until the end of the funding period and only if the target had been met or exceeded), and those who had bought the few tickets you had sold would completely understand as to why the event was not going to proceed. This way, you are also well placed to opt out of your commitments in terms of the costs (you will have a good indication during the campaign, and not have to wait until the end of the campaign before you start to flag your intentions with your suppliers).

In the event that you reach your funding target, you can always add more rewards, or more of each one already on the campaign. You will have the funds committed so you can make arrangements with your suppliers. You will have the flexibility to upscale as you will know what funds are coming in and when.

Crowd funding – underwriting your creative, commercial, charitable and community events.

Posted on February 10, 2017 By iPledg With 0 comments

Crowd Funding – Providing Schools with an Effective Funding Solution

iPledg - Logo - Low-ResolutionSchool is back in, and now the realisation returns that many schools are in need of more sporting equipment, shade for lunchtime seating, props and scenery for the school play, funding to sending students to participate or compete in an event, and the cash to afford the things to supplement the teaching of the 3 Rs. But with governments’ tightening up on the funding they provide to schools for much required “niceties”, and with traditional funding drives becoming tired and lacking enthusiastic support from the community, crowd funding looms as the fresh and effective solution.

It is wonderfully symbiotic – schools are a great fit for crowd funding, and crowd funding offers a source of funding that requires far less time, effort and risk on the part of the schools. In fact, with a fresh new approach like crowd funding, the engagement level is higher and the appeal far broader than the traditional funding initiatives employed by schools in the past.

There are so many inducements or rewards that are at hand that schools can offer to those who pledge their support. Artwork from the kids, corporate exposure in school newsletter, standard tickets or preferred seating at school plays or sporting events, treats from the school canteen, or recognition through naming rights or mention on an honour board (or even on a simple plaque) are just some of the incentives that schools can offer without being out of pocket. Further engagement with the community can be achieved if some of the parents offer rewards from their businesses to those who support the school’s campaign, thus giving greater inducements to pledge.

There exists a natural audience around schools, a ready-made community from who support can be sought. Parents, students, former students or alumni, local residents, local sporting and special interest groups, and Parents and Friends Associations are all prime candidates to whom schools can easily communicate, and from whom support will be easily forthcoming. With a captive audience, communication to “the crowd” and continually driving the message takes no additional time to the standard day-to-day activities of the school, as informing the crowd is as simple as mentioning the campaign in newsletters, at assemblies, and in the regular forms of constant communication that schools undertake.

Rather than families spending days selling fund-raising chocolates (a practice of which families are growing tired, not to mention the safety issue around sending kids around the neighbourhood, knocking on doors) a crowd funding campaign can be set up in just 10 to 15 minutes, and then maintained and driven with just a few minutes of commitment each day to continually communicate with “the crowd” via social media and email. As such, crowd funding represents a far safer and more efficient alternative to fetes and other fund raising events that require a mountain of effort and which run the risk of lack of turnout or even poor weather.

Crowd funding may just well be the perfect, holistic solution for the funding needs of most schools. Providing the cash they need, as well as a great engagement strategy with the local community, crowd funding will become the sustainable funding solution for schools to use for ongoing, rolling campaigns to fund their needs and aspirations.

Posted on January 30, 2017 By iPledg With 0 comments

Crowd Funding – Bringing Your New Year’s Resolution to Reality

iPledg - Logo - Low-ResolutionIt is well documented that most New Year’s resolutions never come to fruition. A high percentage of the best of intentions dissolve by the end of January, and seldom do any make it all the way through the 12 months. The key reasons for New Year’s resolutions not coming to light are a lack of planning, inadequate support or commitment, and a lack of funding to make the plans actually happen. For many, crowd funding may well be the key to a range of plans for the New Year actually being achieved.

Any quality crowd funding campaign will have been well thought through. The viability of the project and outcome will have been considered and researched. Benchmarks and quotations, obstacles and solutions – all will have been scoped out to ensure that the plan is logical and viable. It is this planning discipline that is lacking from many New Year’s resolutions, which are little more than whimsical hopes and aspirations. The planning and articulation of such strategies are what adds meat to the bones, and makes the desired outcomes more tangible and conceivable.

Running a marathon is not easy without a support crew. The runner’s team keeps them focused, enthused, and committed to achieving their goal, all the way to the end of the race. Should the runner’s mind wander or should they hit “the wall”, their team will be there to pick them up, and refocus them on the task at hand. The same can be said of crowd funding. It is very easy to give up when it’s just you, but when you have the support of your crowd, it is harder to give up and just drop the project. You also have the additional benefit of them getting behind you, cheering you on, and pushing you to achieving your goal. It is often said that a task shared is a task halved. This is very much the case with crowd funding, and a key way as to how crowd funding your New Year’s resolution can keep your supported and focused.

So many plans never come to pass due to insufficient funding. Set your funding goal to reflect an outcome that has been well costed. If you can, also set up a tipping point, a compromise where you might reach a lesser but more achievable goal should the crowd only support you to that level (it also gives you a second bite at the cherry to make your dream happen). Offer great, sought-after rewards and spread the word to your crowd, asking them to engage by supporting you as well as by getting the word out to their networks. Continue to drive your campaign from before your launch right to the very last day, even if you hit your target along the way (remember, you can very well over-fund your campaign, giving your dreams and resolutions far greater scope).

Now is the time to be considering your resolutions for the New Year. Perhaps this year, crowd fund your passion, and build your campaign and your team around your goals. Plan it well and articulate your project description to reflect a considered approach. Engage your crowd and your team early. Have your supporters ready to keep you on track, starting strong and focused on running a race with benchmarks and well thought out milestones. Make it clear to them as to how they can support you and what role they each need to play in helping you exceed what you have resolved to do. And with all of this in place, fund your plans with a well executed campaign. And if you have done this correctly, you will find your New Year’s resolution becoming reality, in far greater ways than you ever planned.

Merry Christmas from all at iPledg and here is to a happy and prosperous New Year that sees you fund and achieve your passion in 2017.

Posted on December 20, 2016 By iPledg With 0 comments

Crowd Funding – You are “somebody” too

iPledg - Logo - Low-ResolutionEach day, we are confronted by the media telling us of those who have been dealt a rough hand. Those who have had their lives devastated by Mother Nature, or those who are oppressed. Some suffer from medical conditions that effect their lives, with carers unable to afford or initiate the care required. There are people who have been mistreated or simply not given what they deserve. We often greet such articles with a shake of the head, and an internal dialogue that says “somebody should do something”. But that’s when you should stop – You need to realise that you are “somebody” too.

With the advent of social media, everyone now has the power to tinker away on their laptop or device and be in contact with literally the whole world. Everyone is a publisher, and everyone now has a voice. We all have the ability to build a following, engage a crowd, and motivate a group of people to act on a common cause.

Once the crowd is engaged, discussion begins. “Think tanks” can be coordinated and the pooling of ideas can easily be facilitated. Priorities and projects can be discussed and easily identified, and the planning for implementation can begin.

Workload can be delegated to the crowd, so time is no longer an issue. Collectively, crowds can find the time to get the job done.

Then we come to the issue of funding, and this is where crowd funding plays a vital role. The whole concept is based on engaged communities, each pitching in a small amount to reach a big total. It starts with a single, lone drummer, starting the beat to which everyone will march. Then others join in to “beat the drum” and to spread the word. The collective “beating of drums” can make a noise that is heard far and wide, attracting more interest, more involvement, and more action. This is the essence of crowd funding – the lone “somebody” starting a movement that is followed by those who are close by and equally as passionate, showing others how to follow and get involved, and then we have momentum.

You too can make a difference. You are the “somebody” to start a movement. Like the project, “Healing Rahena’s Heart” which was started by an individual thousands of miles away from the issue, or like project “Choice For Maia” which was initiated by a single mum who had a daughter with cancer, it takes just one person, one spark to light a raging fire. You too can be the catalyst of change, you can make a difference. There is always somebody required to make a change – You are “somebody”.

Posted on October 2, 2016 By DrDion With 0 comments

Crowd funding – Preparing for Christmas

iPledg - Logo - High ResolutionThe early signs of Christmas used to send the neurons into overdrive when I was a kid. That’s in stark contrast to the feelings conjured up when I walk through the shopping malls in August (sometimes earlier) and see the Christmas trees and tinsel being displayed months before the event, all in an attempt to capture the consumers’ dollar. But there is one Christmas initiative that is justifiably started months in advance of the Festive period, and that is a crowd funding campaign, especially conducted by charitable and community groups, to fund the great work they do over Christmas time.

Christmas time is a period of contrasts for those in the the not-for-profit, charitable and community sectors. During the festive season there is usually a heightening of demand for the the great work they conduct throughout the year, and this comes at a time when their revenues are typically in hiatus. Many of those who support such causes focus their attention to spending on presents, holidays or buying that costly Christmas turkey and trimmings, ready for when the relatives descend. So as the purse-strings tighten whilst demand increases, those who have made a mission out of servicing the community require other, more creative revenue streams to fund their activities during what is often their busiest time. This is where crowd funding steps up to the plate.

A well thought out and implemented crowd funding campaign, prepared and initiated in September, is likely to deliver the funding required to those who require it the most, just at the time when it is most needed. Crowd funding takes preparation, and then a period to deliver the campaign. To successfully deliver the Christmas funding required to provide for their busiest time of the year, community groups need to act now if they are to generate sufficient funding and support for their work.

The work for such a campaign needs to begin in September. Those wishing to run a campaign to generate funds for their Christmas needs must plan – who are their target market, what will make the best rewards, and what is the best method for communication? There is also the need to start preparing the collateral required – pictures, campaign description, and a short video that will help potential backers see your authenticity and sincerity. And then there is the crowd – time needs to be taken to build a broad base of engaged followers, ready to receive your pitch when your campaign goes live. Similar to a street performer who spends time gathering a crowd before starting his act, a campaign owner needs to spend time building a large enough crowd to entertain and engage with their campaign. It is not a matter of starting to campaign and they will come – time needs to be taken beforehand to hit the ground running as soon as the campaign begins.

If September is the month for preparation, that then allows for October and November to be the months in which to run the campaign. The optimal time frame for a crowd funding campaign is 60 days, so “going live” at the beginning of October gives a campaign just the right amount of time to get the attention of the crowd before they shift focus to the pre-Christmas madness. It also allows for your to tap into your first tier – family, friends, and closest supporters, so that they can not only support your campaign with a pledge, but get the word out for you to their networks – the “second tier”or friends of friends. This “second tier” is much larger than your immediate networks, so starting a Christmas campaign in October allows you time not only to tap into your crowd, but gives them time to leverage your message to a much larger audience.

If correctly prepared in September, and then effectively executed over October and November, a Christmas-focussed campaign delivers an early Christmas present to the charity, community group or not-for profit in early December. The funds, often more than the funding target sought, come rolling in. Typically the funds take up to a week to clear, so early December is the perfect timing for the money to come in, allowing those who run such campaigns sufficient time to allocate their expenditure to deliver their work as planned over Christmas.

If you are involved in the not-for profit sector, community groups, or a charity, you will well relate to the way in which funds are stretched over a time of year when they are most required. But now with crowd funding, there is an effective mechanism that will not only deliver at a time when you need it the most, but to so in an effective manner, amplifying the limited resources that may have restricted other fund raising activities while giving you reach beyond that which you have traditionally tapped.  Now is the time to act if you are to be ready for Christmas. The result will be a wonderful present to your organization, your supporters, and those who you serve.

Posted on September 1, 2016 By DrDion With 0 comments

Crowd Funding for Musicians – Putting It Together Makes Such Beautiful Music

iPledg - Logo - Low-ResolutionThe modern age of crowd funding began in the 1990s with UK rock group, Marillion, so we start this year with that theme. Crowd funding has been the domain of the creative and artistic types who have been successfully using the medium to fund their dreams. But what is it they can fund? And what rewards can be offered to potential supporters to induce them to part with their money and help the project creator? Our latest blog incorporates the successes that have amounted to large sums having been raised by creative crowd funding campaigns by the musical fraternity.

Musicians are always in the need of better gear or more equipment to help them achieve the desired sound. Crowd funding can assist them afford the gear they need.

And once they have achieved the perfect sound, the costs of recording and capturing that sound for all eternity can be exorbitant, but crowd funding has been successfully used to cover the recording costs of bands and musicians over the years.

Once the sound has been perfected with the right equipment, and the tunes have been captured in digital or “hard-copy” format, it then is the job of the musician (or their promotional team) to get the word out to the world. That involves touring, and that can be costly, and then there’s the promotion of concerts and the recordings themselves. For almost 20 years, bands and solo performers have been using crowd funding to successfully cover these costs, paving the way for current musicians to do the same.

So with an understanding as to what can be funded, what inducements can be used by a musician entice their supporters to part with their cash to fund the campaign?

Let’s go with the rewards offered by successful campaigns that have been run around the world:-

A $10 pledge could be recognised with an offer of digital downloads, getting their music “out there” and (in effect) making pre-sales. Successfully doing this tends to bolster social proof that there is an audience for the band’s music, which is a powerful tool for the band to use when convincing venue-owners to book their act. Approaching a venue owner with evidence that the performers have made strong sales makes for a compelling argument to book them.

A $25 pledge may earn the supporter a ticket (or a couple of tickets), to a gig, again offering a form of pre-sales and validation. It is always reassuring for an event organiser to have had presales made, and with the all-or-nothing nature of crowd funding campaigns, ticket sales are only made and the event only proceeds if the funding targets are met – a win / win for all concerned.

A pledge of $50 may earn the project supporter some other merchandise at prices less than face value. Remember, rewards need to be great value and sought after. Perhaps even offering bundled rewards – a t-shirt plus a CD – may represent something that a true fan may really want. Keep in mind, too, that items in short supply or gifts that are personalised can command a premium. By autographing these types of rewards, supporters may be prepared to pay a premium (imagine if crowd funding had been around in the days of the Beatles when they were young – what would a T-shirt autographed by a young John Lennon be worth today if offered back then??)

Offering personal experiences have often proven to be successful enticements to get supporters to pledge. Rewards like offering fans to sit in on practice sessions, or to come along and jam with the band can be highly attractive to die hard devotees.

Stepping it up a few notches, larger pledges worth hundreds or thousands of dollars could be rewarded by a private performance (offering the services of the group to play at a party, or the singer to perform a couple of romantic songs at an anniversary dinner).

And if these aren’t incentive enough, remember that everyone loves to see their name in lights (or, at least, in print). Offering to put the supporter’s name on the liner notes or on a roll of honour on your website could be just the carrot to get them to hand over their money in support of your campaign. Larger contributions can be recognised by offering the supporter “producer status” on your liner notes or CD sleeve.

So there are the “what”, the “why” and the “how”. Now it just remains for more musicians to recognise the “where” and use the above framework to launch their crowd funding campaign on www.ipledg.com to fund their passion.

Posted on August 4, 2016 By iPledg With 0 comments

Go over E-Trade: ITS Creation AND Near future Prospective

Go over E-Trade: ITS Creation AND Near future Prospective

Electronic trade (E-trade) can be applied exactly where selling and buying of services and goods is over the internet, facilitated throughout electronic and digital platforms like on line and others. E-commerce incorporates affiliate marketing, via the internet deal control, stock managing platforms, mobile or portable business and electric dollars move .Continue Reading

Posted on August 2, 2016 By Bob With 0 comments

Crowd Funding – The Second Bite of the Cherry is Often the Sweetest

iPledg - Logo - Low-ResolutionThe old adage is well known – “If at first you don’t succeed….”. But never has it been so true as with crowd funding, that if you don’t meet your target the first time round, it is best to get back on the bike and have another go. With hindsight and the wisdom of experience, those initiating campaigns are increasing their chances of success by having a second attempt. Crowd funding is not only proving to be a great vehicle for raising funds, but a perfect platform for testing assumptions and the market with little or no cost.

It is well documented that success rates on crowd funding platforms around the world sit around 40%. That is approximately 40% of all campaigns that are profiled on crowd funding sites meet or exceed their funding target. It should also be noted that 20% of campaigns don’t raise a single cent, usually due to the campaign owner not understanding the essence of crowd funding, being ill-prepared, or being totally inactive. For the remaining 40% (those who do get off the ground but fall short of their target), going back for a second attempt usually proves more fruitful with the knowledge gained in their first attempt:-

Size of the Target

The average funding target of all successfully crowd funded campaigns in Australia sits between $6,000 and $7,000. Many unsuccessful campaigns have a target considerably higher than this. Whilst everyone is keen to “hit the long ball”, sometimes it is better to aim for a more manageable and achievable target. Going back for a second attempt is a great way to have a more realistic look at the size of the potential audience. It is an opportunity to work out the true size of your immediate “first tier”, and work your target around that. Keeping in mind that the average pledge is $50 and that 10% of your database will pledge, it is best to either set your target around that amount, or spend time building your database to get to the numbers you need before you launch.

Initial Momentum

Before you launch, have your media collateral ready, including the plan for contacting the local papers, radio and TV. Plan to do some “stunts” like hand out flyers, especially at events that align with your campaign. Make sure you hit the ground running, with your plan thought out, ready to hit it hard as soon as you launch. In fact, have your first followers primed and committed. Remember, stats show that if you have 0% funded in the first 48 hours, your chances of reaching your target are just 15%. However, as you increase the percentage of funding achieved in the first 48 hours, you drastically increase your chances of achieving success (to the point whereby campaigns that meet 35% of their funding goal within the first 48 hours meet or exceed their funding target in almost every case). Too many campaigns that fail to meet their target waste precious time in the first weeks of their campaign, and rue it as the clock gets close to the end of the timeframe. Remember, initial inertia determines outcomes.

Inducements or Rewards

From the first attempt, campaign owners will learn which rewards are the most popular, and which have little or no uptake by the crowd. This knowledge will allow for the creation of a revised menu of rewards the second time around. Also, it is a good time to review the “maths” around the rewards versus the target. If your most popular reward is $50 and your target is $40,000, then you will need a huge amount of people committing to that reward tier. Now is the time to either bring your target more into alignment with your suite of rewards, or introduce some more high-value rewards to achieve significant steps to your funding target.

The Crowd

Most importantly, ensure you start with a band of supporters to give the campaign its initial momentum. As mentioned above, your “first tier” will validate your campaign. They will bring on your “Second tier” or friends of friends to give it momentum. And then the Third tier comes in to play to really take your campaign towards funding and over funding. You can read more about the Third Tier Principle be clicking here. When you run a campaign, you can get the database of those who pledged the first time round, and ask for their feedback on which you can build your second attempt. Remember, whether it is a really successful campaign, or whether you are at the stage of revisiting an attempt that fell short, the true value of crowdfunding isn’t the money – it’s the people. Engage, build, and engage again.

And for those who are successful, Success breeds more success

It is not only those who have fallen short the first time around who go back for a second attempt with crowd funding. In fact, those with one successful project under their belts have nearly double the chances of success—73%—of reaching their next funding goal. The team behind the Pebble watch raised $10.2mil the first time around, then went back for a second go, raising $20.3 million. Those with multiple successful campaigns to their credit say momentum is the key. Whether successful or not the first time around, loyal supporters will continue to come back again and again, as long as you maintain momentum. Contact supporters straight after the end of a campaign, and thank then whether you were successful or not. Ask them what they liked and what they didn’t. And, most of all, welcome them to your family and your ongoing journey.

And remember, when it comes to crowdfunding, to try, try, and try again.

Posted on July 21, 2016 By Bryan V With 0 comments

Way Forward For Printed out Textbooks In Your Electronic Period of time

Way Forward For Printed out Textbooks In Your Electronic Period of time

Produced novels have already been the route of disseminating information and concepts considering that time immemorial. Literature were utilized for hundreds of years to carry in advance information from creation to the other. The recent many years have observed astronomical evolution in technological innovation.Continue Reading

Posted on June 22, 2016 By Bob With 0 comments

Crowd Funding – The Benefits of Ad-Sharing

iPledg NewCampaign creators are always looking for new and different ways to improve their reach, and to get their message to greater numbers of potential backers. Leveraging off contacts and off the size and strength of the crowd is the key, so any new ways to do so are welcomed by those trying to raise funds through crowd funding. But now there is a mechanism that is bringing large numbers of backers to campaigns, and these supporters are coming with trust and familiarity already established before they visit the campaign. This is the mechanism of “Ad Sharing”

Ad Sharing is an incredibly simple concept, to the point when I first heard about it I thought I was missing something. Basically, it involves the campaign owner (in this case, let’s say it is me) getting a friend to send something about my campaign to his database. Afterall, his database knows and trusts him, right? So it gives me their attention and comes with the power of his (inferred) validation.

Then, I return the favour by doing the same for him, whether it be his business, an event he is running, or any other benefit he might seek by having my database or followers brought to him because of me. It doesn’t have to be at the same time as the one he sends out for me – sometimes it may be better for him to have one “in the bank”, for me to send out later on when the time better suits.

For those of you with a database or even a social media following, you know how hard they can be to grow. Regardless of how many contacts you have, you can considerably increase your reach through Ad-Sharing. And you will have the benefit of a third party endorsement from a person who is known and trusted by the email recipient.

And it only gets better….

If you can get a few like-minded friends together to play this Ad Sharing game, your reach grows exponentially. Grab three friends (forming a group of four including yourself) and try this…

Each of you has a database or group of followers or fans. If each of your group schedules an email to their database on behalf of each member of the group, your message goes out to not just your database, but to the database and contacts of all 4 people in your group (because they each send one about you to their respective databases). If you have 1,000 fans, followers, connections, and members of your database, you could previously only reach 1,000 people on your own. But if you Ad-Share in a group of 4 people, you can now reach 4,000 if their contact list is the same size as yours. It’s as simple as sending just 4 emails.

The cost? Nothing!

The time taken to do so? All up, about 20 minutes (each person in your group of four writes their own email for the group members to send)

And the fun, as well as the return? Bucket loads!!

So you now have another, very powerful tool in your kit bag to help you engage with a broader audience. Give Ad-Sharing a go, and see the increased traffic and success for your crowd funding campaign.

Posted on June 12, 2016 By Bryan V With 0 comments

Crowd Funding – Failing to Plan is Planning to Fail

iPledg - Logo - Low-Resolution21% of all crowd funding campaigns don’t raise a single cent. Many of them are great concepts, and some even well articulated. But even the best ideas get no traction if the strategy behind the crowd funding campaign is not well thought out, planned and implemented. And of those that do get momentum, the average raise for crowd funding campaigns worldwide is less than $10k, with their potential being capped by a lack of work done in the prelaunch phase. Rather than waiting until your campaign is underway, it is best to plan beforehand and then execute the plan once your campaign is live.

Crowd Funding is not a new concept, and given that it has been the fastest-growing form of e-commerce on the planet for quite a while now, there are many examples of success, and from which proven ingredients for achieving your funding target can be gleaned. In preparing for a campaign, research what has worked for others. Specifically, look for projects that originate from the same sector (e.g. if your project is about building a bike, find projects that have also raised money to build bikes – successful campaigns have been run in almost every category). Look at the campaign description used in successful campaigns, their rewards, their video, and the general layout of their campaign. Take the common threads and use them in your campaign. You don’t need to reinvent the wheel – Success is a well worn path that has already been defined for you.

Campaigns with a video more than double their chances of success. Make sure you shoot a video for your campaign. Keep it short and sharp, remembering that most people stay engaged for just 42 seconds. Tell the viewer about you, your project, what you are raising money for, and let them know how they can help you. Get to the point early. Grab their attention quickly, and keep it throughout your video (and that can be a challenge!). Show your sincerity and personality, and have fun with it.

Cool, sought-after rewards can make or break a campaign. Make them creative, exciting and good value. If you can, get some rewards from your community before your campaign and offer those in exchange for promoting them as part of your campaign (e.g. If you have a friend who offers jet ski tours, ask for half a dozen tours for free that you can offer on your campaign, and mention them in your campaign description as well as your campaign promotion). Use 4 – 6 reward tiers, and always have a stretch-reward, one that offers a unique reward for a really large pledge. Keep in mind, rewards do not need to cost you anything – experiences, naming rights, and public recognition all make for great rewards that cost you nothing.

You want to make sure your campaign looks good, from the project badge (the picture people will see on the Featured Projects page) right through to the campaign itself. Make sure you incorporate great images, whether they be photos or artwork. Even catchy logos can work well here. Sites like www.fiverr.com can develop some really cool artwork for a ridiculously cheap price, and this can help you to stand out, drawing people to your project over others.

At the same time as building your campaign and your collateral to look, feel and sound right, as well as to be engaging enough to people that are drawn to your campaign, you need to be working on building your crowd. This is perhaps the most important ingredient in achieving crowd funding success. The money will always come after you build and connect with your community. Without building and connecting with your community, it is like trying to sell Amway on the street corner. You need to have supporters primed and ready to be your early adopters. Crowd Funding is a numbers game. In our previous blog we outline the chances of achieving crowd funding success given the amount of support you have early in your campaign. A good campaign converts just 4 – 5% of the traffic that comes through to the site. Based on these figures, if you want to raise $10,000 with the average pledge being $50, you need to get your message out to 4,000 – 5,000 people. If your crowd is limited to just 400 friends of Facebook, you need to build that before you go live, or the odds are stacked against you achieving your target.

One of the ways of getting support is to “influence the influencer” – that is, to have well connected people speaking out on your behalf, promoting your campaign to their followers and helping spread the word (and, in the process, almost validating your campaign for you). Find well connected people amongst your friends and your circles (they don’t need to be Hollywood A-listers, just well connected folk), and ask them to send out a tweet or blog-piece for you once a week during your campaign. If you write it for them, you make it easier for them to promote you, and you retain control of the message.

And once you have prepared, only then will you be ready to put the pedal to the metal and drive your crowd funding campaign.

Posted on May 28, 2016 By iPledg With 0 comments

Crowd Funding – the Symbiotic Relationship with Sport

iPledg - Logo - Low-ResolutionThe success of crowd funding campaigns is largely down to some key factors. Firstly an engaged crowd, a group of supporters who are passionate about the outcome or want the rewards on offer, and who are motivated enough to spread the word. Then there are the rewards themselves – cool, sought after and representing good value, enough to motivate a pledge of support. Of course, there also needs to be a well articulated project about which the campaign is being run to raise funding. These are all present with sporting clubs, big and small, making a perfect fit for crowd funding.

Sporting groups and clubs always have projects on the go that require funding. More and more, they are finding the traditional methods of raising funds becoming less effective and more tedious. Sausage sizzles seem to raise a few dollars, but require a mountain of effort to raise relatively little funding (also, it’s kind of ironic that sporting clubs that strive for health raise funds from the sales of unhealthy fatty sausages). The same applies to selling fundraising chocolates. Raffles, too, involve so much time, and require someone to organise prizes, someone to sell the tickets, and then the admin around drawing and delivering the prize. Again, a lot of hard work for seemingly little return. And the big issue with these traditional forms of fundraising, they have little in the way of residual value as an engagement tool. Once the fundraising drive is over, there is hardly any ongoing engagement.

The types of projects that sporting groups can fund are limitless. There is a the constant need for equipment – shirts for players, training equipment, balls and bats, as well as nets, corner posts, and supporter facilities. There are also events that are run by some clubs, the old Dinner Dance or the like that bring about further supporter engagement, but which few clubs can afford to run. Preseason and post-season tours are costly imposts on sporting clubs, but these too can be crowd funded. Crowd funding can also be used by sporting groups in some creative ways. Tweed Valley Rollers (TVR), a group of roller derby girls from northern NSW, ran a campaign where they successfully funded a 1920s-style calendar which was the catalyst to further funding efforts. It all began with a crowd funding campaign which they then leveraged into further funds and so on.

Coming up with rewards for sports-themed campaigns are always easy, as the sector naturally lends itself to perks that will motivate people to support campaigns. A New Lobster offered private coaching as well as well as other services in a form of pre-sales to generate pledges. TVR offered preferential seating at their game, photo opportunities with players, and a heap of other coll rewards that saw them quickly achieve their target. In most cases, sporting clubs can improve the geographic spread and appeal of their campaign by utilising contacts in their sport to get more broadly sought after rewards. A New Lobster offered private tennis lessons as rewards – a great incentive if you live locally, but less effective to those who aren’t in the vicinity. If they utilised contacts to get a couple of autographed racquets from a local famous player on the international circuit, and then offered these as rewards, then their appeal would immediately increase to potentially a worldwide crowd of possible supporters . There is also the opportunity to offer some big rewards to sponsors, both present and prospective, and really get some major contribution to the campaign. Creative thinking can dramatically improve the scope and potential success of a crowd funding campaign.

But the most well structured campaign will not reach its target without engaging a crowd, and this is where sporting clubs have a big advantage. Sporting clubs, by sheer virtue of what they are, have a natural crowd to tap into. Players, parents, supporters, sponsors, and even competitor clubs’ players and supporters are potential backers of campaigns. By using the methods of communication that clubs use in their day-to-day operations (i.e. there doesn’t need to be any extra work undertaken to run a crowd funding campaign), sporting clubs can get the message of their campaign out to the crowd. Ground announcements, newsletters, text messages, social media blasts, or usual forms of communication to supporters can be employed to inform the crowd of the campaign, and get them to pledge their support,  or to spread the word (or both!). The benefit of most sporting organisations is there will also be the core loyal and passionate supporters who will not only pledge their financial support, but who will drive and support the efforts required to continually get the message out there, doing this as availability permits, representing a far more efficient and effective fund raising option for time and resource poor sporting organisations.

Posted on April 8, 2016 By iPledg With 0 comments

Crowd Funding – How You Start Determines How You Finish

iPledg - Logo - Low-ResolutionPreparation is the key to successful crowd funding, whether employing the pledge model or capital raising through equity crowd funding. Many experts can quickly assess whether the campaign will reach its goal, just by looking at the campaign and asking the project creator a few simple questions. In most cases, success is determined not by what happens during the campaign, but by the work done in the prelaunch. Research and work done in the lead up to going live will not only give your campaign the best chance of success, but often determine whether the funding goal will be met.

Recently, I stumbled upon perhaps the best template for successful raises that I have ever seen. I am not one to usually promote other sites and businesses related to Crowd Funding, but I can’t sing the praises highly enough for the highly respected Eli Regalado, Chief of Madness at Mad Hatter Agency, who has raised over $1,000,000 and has now put his hints and tips into the Udemy course – “The $400k Crowdfunding Launch Formula” (He obviously wrote the course before raising even more funds!).

His course emphasizes the need for 8 – 12 weeks of preparation prelaunch to really understand the product, the market, and the crowd. “Family And Friends Raises” raise small amounts of money, and rarely even have the audience to do that much. Following Eli’s tips helps to really position yourself well at the starting line of your campaign, so you can cruise to the finish line (OK, there still is a fair amount of work between the start and the finish, but preparation is the key).

The first step is to build your team with specific roles and tasks. Set up a register where you can communicate amongst one another, and have a clear record of what needs to be done by whom, by when, and how. Plan your work and work your plan.

Once your team is in place, start to gain intelligence on the project, the space, and the crowd. Eli gives some great tips on how to “Search like a Ninja” and use simple Google searches in ways far more effective than I ever knew possible (and I thought I was pretty good at searching topics on the ‘net). Searching and researching with tools like www.Netvibes.com will assist in understanding who is talking about your sector and what they are saying.

Identifying and getting on the right side of influencers and advocates will help increase your audience and your bandwith, as well as add considerable clout to your message. It is not enough to find influencers with a few thousand followers – using Eli’s tips will help you find influencers with tens of thousands, if not hundreds of thousands or even millions of followers. “The $400k Crowdfunding Launch Formula” doesn’t only introduce you to tools like www.twitonomy.com but will show you how to use them to engage. From there, you can also get bloggers blogging your message, and turning into advocates for your campaign, way before it even begins. And best of all, you can ask for what you need from well connected, key influencers.

Once your crowd is starting to grow and buzz, you get to the building phase, at which point you start creating content and digital assets. The shortest distance between you and the point of success is not a straight line, but by following the most well worn and successful paths of those who have gone before you.

Then it is a matter of continuing to work your crowd until your campaign goes live. Be authentic in how you choose people and build some rapport first. Take time to do this and your influencers and ambassadors will not only help with your campaign, but they will also help you long term. The beauty of the internet is knowing that if you make a trusted and sincere connection to key influencers and work with them, the reach can be quite extraordinary.

Put quite simply, crowd funding is work – team work! Build your team and work with them. As the founder, drive your vision, but ensure you involve people and listen to them. Build and engage your crowd, and use the experience of those who have done it in the past to build a solid campaign. And remember that the money comes after you build your community. If you don’t, it is like trying to sell Amway on the street corner.

Posted on March 4, 2016 By iPledg With 0 comments

According to the recently available boasts, the reality that on the climate change is groundless. Any kind of clinical evidence for such states?

According to the recently available boasts, the reality that on the climate change is groundless. Any kind of clinical evidence for such states?

Experts who aid climate change make clear being follows Climate change may be the phenomenon of surge in heat level with the setting. This boost in temps as a result of excessive emission of co2 and green-colored home gas by getting rid of of energy sources.Continue Reading

Posted on February 26, 2016 By Bob With 0 comments

Crowd Funding – Revisiting the Third Tier Principle

iPledg - Logo - Low-ResolutionThe importance of the Third Tier Principle has long been stressed as the basis on which any crowd funding or capital raising must be based. It is essentially the key to success, with early engagement being the start of broader attention and support. It’s like when we were kids standing on the side of the pool with a group of friends, no one wanted to jump in first. But get a few in the water, and the edge of the pool is no longer the domain of “the cool kids” who will have already jumped in to join their peers.

The third tier principle starts with their first tier – your family and friends, the ones who know and love you. Even your followers, fans, and contacts on social media are considered first tier, as are all of the people in your email folders. In essence, anyone with whom you can have direct communication constitute your first tier. These are the ones you must engage for support for your campaign to be successful. They are the ones who provide early validation for your fund raising or capital raising efforts, and will show others how to follow. Without early engagement, and the support of the first tier, the broader circles of your crowd will be less likely to engage.

The power of the first tier can never be understated, and the ability to engage them early in your efforts to raise broader support is essential to you reaching your funding goal. A study of major crowd funding campaigns around the world showed the importance of priming your crowd early, even before our campaign formally begins, so that you achieve early runs on the board soon after your campaign commences. The study showed that if, in the first 48 hours, you have not raised any funding, your chances of reaching your target was just 15%. However, by reaching just 1% of your funding target within the first 48 hours of your campaign, you almost double your chances of success to 27%. In fact, if you can get to 5% of your target within the first 48 hours, you have a 50% chance of reaching your goal. Should you be able to get to 10% of your funding target in the first two days, then your chances of success increase dramatically to 70% – Achieve 20% and you have an 80% chance of succeeding. And campaigns with 35% of their funding goal met within the first 48 hours meet or exceed their funding target in almost every case.

Having understood the importance of early engagement of your first tier, and the need to build breath of numbers before your campaign commences, your first followers “beckon” to their networks to join them in their actions in following and supporting your campaign. They become your advocates and call to their networks, usually through the use of social media, to do as they have done in pledging their funds to your target. This results in a considerable amplification of your initial efforts. Once this happens, your campaign will start to build a momentum of its own. Crowd funding experts recognise that if a campaign hits 30% of its funding target, it goes on to meet or exceed its target in 90% of cases, and this is due to the momentum created once the second tier engages.

Once you have momentum, the third tier sits up and takes note. Media will also jump on board without prompting. Statistics show that you need to reach 25% of your target before strangers start pledging their support, but once you tap into the third tier, you are now attracting the attention and support of a massive crowd. Referred to as “the smart money”, the third tier is less driven by emotion than the first and second tier, and more about the prospect of what is on offer (although they often are motivated by the fear of missing out).

You Tube sensation, The Shirtless Dancing Guy, is a short video that really captures the essence of the Third Tier principle. It is a clear visual demonstration as to how important it is to gain the support of your first followers, and embrace them. It shows how the first tier instinctively calls on their networks to support and to do as they have done. Without the momentum created by the first two tiers, the third tier, or broader crowd, is less likely to engage. But when the tipping point is reached by the first two tiers, a groundswell is created as the third tier join the movement, and the initiator becomes surrounded by a broad, engaged and supportive crowd.

Posted on February 25, 2016 By iPledg With 0 comments

So what is Crowd Funding?

Crowd Funding is a rapidly emerging form of e-commerce, leveraging off the growth of the internet and social media. According to Gartner Research, $1.2 billion was raised by Crowd funding sites in 2009, and is expected to grow to over $6 billion by 2013. In these tough economic times, Crowd Funding continues to buck the trend as it fills a very real and relevant need for raising money for initiatives that (in many cases) would just not get up if it weren’t for platforms such as iPledg.

But despite this, in Australia, Crowd Funding remains a relatively unknown term. When asked by people “what do you do”, our answer “we run a Crowd Funding platform” is met with a puzzled look as if we had answered in a foreign tongue. In fact, our biggest challenge at this point in time is to educate an unaware yet very receptive market as to the existence of this wonderful form of e-commerce. The most rewarding part of our role is watching peoples’ faces light up as the penny drops and they start to imagine the applications for which this new vehicle can work for them. Everyone has a project, or knows of someone who has a project, but most commonly these initiatives are not actioned because of a lack of funds. Crowd Funding now allows for project creators to unlock the possibilities and get support from those in their social and extended networks.

According to Wikipedia, “Crowd Funding describes the collective cooperation, attention and trust by people who network and pool their money together, usually via the Internet, in order to support efforts initiated by other people or organizations.”

Crowd Funding is receiving renewed attention from both commercial and social entrepreneurs, charities and community groups, and those in the artistic and creative space now that social media, online communities and micropayment technology make it straightforward to engage and secure pledges from a group of potentially interested supporters at very low cost and low risk.

One of the pioneers of Crowd Funding in the music industry has been the British rock group Marillion. In 1997 American fans underwrote an entire US tour to the tune of $60,000, with donations following an internet campaign – an idea conceived and managed by the fans before any involvement by the band. Marillion has later used Crowd Funding with great success as a method to fund the recording and marketing of several albums.

iPledg is a crowd funding model using a PLEDGE funding model. A pledge is not an investment, so is not bound or encumbered by traditional legislation around funding and investments. A pledge on iPledg is simply a pledge of financial support for a project.

Essentially a project creator creates a project online and indicates how much funding is required to complete the project and in what timeframe they wish to raise those funds (usually 30 – 120 days). Anyone posting a project invites friends, family, fans, and broader networks to offer support. Visitors to the website may then pledge money to projects they like via an automated online payments process, and for which they are offered a reward.

Only when projects meet their funding target within the specified time frame will the monies be passed onto the project creator. When posting a project, project creators may offer rewards (which may not be paid for out of funds raised). The project supporters then receive rewards from the project creators once funding targets are realised in the funding timeframe. Should the minimum funding target not be reached in the specified timeframe, the project supporters do not part with their money and the project creator then has the opportunity to review their pitch and start again. This is what is meant by “all or nothing” funding.

Apart from a wonderful way for project creators to raise the capital they require for their initiatives, a successfully run fund raising campaign often provides social proof for a project creator’s concept, showing that more than just the project creator believes the initiative to be a good idea . It allows project creators to raise funds without going into debt or giving up equity, whilst presenting the idea to (potentially) a worldwide audience.

We welcome you to the exciting world of Crowd Funding with iPledg.

Posted on January 20, 2016 By iPledg With 0 comments

Crowd Funding – The Discovery Session

iPledg - Logo - Low-ResolutionBefore you start your crowd funding campaign, it is essential to define your target market. Not for your product or service, but to work out who represents the pool of potential supporters who might assist you with your fund raising. Prior to going live with your campaign, you should make a comprehensive list of potential supporters who you can approach, so that the fund raising process starts quickly and accelerates rapidly, attracting the attention of broader and broader networks of supporters. This is known as the Third Tier Principle.

Most crowd funding platforms are there to guide you through the fund raising process, as well as to host your campaign. Whilst their sole purpose is not to attract supporters, they will do this if you start to engage the First Tier, namely those that are closest to you (your friends, family, workmates, etc). Once you have engaged the First Tier, these supporters will start to do some of the work for you, engaging the Second Tier, or “friends of friends”, as the early adopters start to tell their friends what they have done, and inviting them to do the same.

Once the Second Tier starts to support your campaign, you will have established a movement or sufficient momentum for the Third Tier to start to take note. These are a broadest pool of supporters, and what is termed “The Smart Money”. The First Tier supported out of emotional motivation – they know you and love you, but the Third Tier do so out of logical reasoning. They see movement and want to jump on board.

third tier

You need to liken it to the days of your childhood when you stood with your friends at the edge of the swimming pool. Initially, there was the constant elbowing and comments of “you jump in”, to which your friends replied “no, you jump in first”. This continued back and forward until the first, braver few jumped in, then a few more, and then more until it was no longer “cool” to be left standing on the edge.

The same is the case for fund raising. Engage your First Tier. Get them to jump in and then others will follow suit.

To establish your first tier, you should run a Discovery Session to identify who might make up that group.  A Discovery Session simply allows you to make a list of potential candidates for the First Tier so that you have a target group to approach. The broader you make this, the more chance you have of establishing the initial momentum and getting underway to reaching your funding target.

Below are listed some areas to consider when making the list of your potential first supporters:-

  • Family – Ask your family members if they would like to support your campaign. Often family members are reluctant to support because they never really know what they are getting into, but your project description makes it simple, clear and well structured as to what they are supporting.
  • Friends – Same as for your family, ask those who know you and love you the most to consider supporting you.
  • Neighbours – Who are the people that live in your community that ask you with some interest what you are up to? Surely there are people in your local area that may make good potential supporters.
  • Workmates – The clearly defined structure of a crowd funding campaign makes it easy for the people you work with to support you.
  • Clubmates – Are you the member of a sporting club, social club, or a group like Lions or Rotary? Are there members there that you could introduce to your campaign? Remember, you don’t have to directly ask them to support you – if you have set up your project description in a way that is attractive, they will feel compelled to support without you asking. You just need to tell them about what you are doing and invite them to take a look.
  • Social media contacts – Do you have friends on Facebook, Followers on Twitter, or Connections on Linkedin? Prior to a crowd funding campaign, build up your contacts on social media, and once your campaign is live, be sure to invite your connections to have a look at your profile page. Marketing this way is a game of numbers, and the more connections you have on social media, the better chance you will have of reaching your funding target, so be sure to build up your connections before your campaign goes live
  • Interest groups on social media – Not only is it wise to start building up your followers on social media, but start to seek out groups and individuals with an affinity for what your campaign is about. By connecting with likeminded individuals and seeking out groups on social media, you greatly increase your pool of potential supporters. A simple search for search terms associated with your product or service will connect you to a whole new groups of potential supporters.
  • Everyone in your Sent box, Inbox, and Deleted emails – they are all email contacts and a great place to start a database. Everyone who has sent you and email in the past or everyone to whom you have sent an email is captured on your computer. Fish out these email addresses and start to build a list of them (a simple database). You can then email them all about what you are doing with a simple link to your campaign once it is live.
  • Local media – Start to build a list of local media contacts so you can let them know about what you are doing. On the nightly news you will see many of the reporters have their twitter handle (jot them down and send them a direct message). Many of the journalists in the local paper have their email address listed at the end of articles they have written – add them to your database. Contact the local radio stations and tell them about what you are doing. The local media are always on the hunt for interesting local stories, so feed them your news.
  • Blogs – Ever considered writing a blog? It is a great way to get your thoughts out there and engage likeminded people and those interested in your product or service. And if you struggle with writing a blog, you can do a video blog (face to cam) or even use sites to create a cartoon blog to get you message and thoughts out there. As well as creating your own blog, do as we have suggested above and search for blogs related to your product or service, and join them to engage with people who may become potential supporters.
  • Suppliers – Those who supply you, whether it be the components for your product or service, or anything from the cleaning products your use in your business to your stationery supplies, all make potential supporters. They always keen to strengthen ties to their customers, and may make for potential supporters. There is one way to find out – add them to your list and invite them to have a look at your campaign.

Your Discovery Session will have flushed out at least a couple of hundred (if not many more) names of potential supporters who you now need to get on and contact. Start to email, telephone, sms, or visit them and let them know about your campaign. Keep in mind that people will need a couple of reminders during the period of your campaign. Contacting them is not a one-hit-wonder, and the “constant contact” strategy works best, from sending an email a week right up to social media announcements that will need to be made daily.

Posted on December 27, 2015 By iPledg With 0 comments

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Posted on December 26, 2015 By Bob

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Posted on December 26, 2015 By Bob

Crowd Funding – No Small Change When It Comes to Social Funding

iPledg - Logo - Low-ResolutionMention the word “Entrepreneur” and people immediately think of words like profit, performance, return and dividend. But when it comes to social entrepreneurship, we move into new ground, that of broader cultural, social, and environmental outcomes. Profit may still be associated with such ventures, but profit is a mechanism to sustainability rather than the main focus which instead is aimed toward the greater good. And those supporting such initiatives do so not out of greed (what’s in it for me), but out of a shared passion for the cause or the outcome it will deliver.

Social entrepreneurship operates on a focus shifted from maximising profits for shareholder returns, to the pursuit of solving social problems. Typically there are four key categories of social entrepreneurship:- community-based enterprises, socially responsible enterprises, social services industry professionals, and socio-economic enterprises.

Community-based enterprises bring together a community, and focus its culture and resources to drive toward their desired outcome. Socially responsible enterprises aim to create legacy projects, that offer sustainable development directed mostly on societal gains. Social service industry professionals are those who work specifically in the sector of social services to develop and build on the social capital of their chosen individual, community, or organisation.  Socio-economic enterprises refers to companies with an awareness of their Triple Bottom Line, and direct some of their revenue and profits towards implementing social change, be it empowering change-makers, mentoring, strengthening existing projects and assisting with further capital raising.

The concept is not something new to the social or economic landscape. Back in the mid 1800s, Florence Nightingale demonstrated the concept when she not only documented the need for change in hospitals where high death rates were occurring, she drafted the change plan, and organised numerous fund raisers to source the capital to implement her recommendations. She engaged the nursing community by reassigning tasks to the most capable and passionate supporters of the cause, uniting them and focussing them as a community to deliver a beneficial outcome to the cause about which they felt so strongly.

In recent years, initiatives of a social entrepreneurial nature have been significantly assisted by the reach of the internet and the emergence of crowd funding which, in the words of Wikipedia, allows for “the collective cooperation, attention and trust by people who pool their money and other resources together, usually by the internet, to support efforts initiated by other people or organisations”. In effect, social entrepreneurs are now able to embrace a greater following and raise the required funding through crowd funding.

Once such example was the project Tackling Child Labour on Indian Stone Quarries Through the Construction of Residential Schools. Having identified that children living on stone quarries belonged to one of the most disadvantaged groups in India, the initiators of this project recognised the approval given by the Indian Government to Santulan to develop residential schools, and decided to crowd fund the additional costs needed to cover basic furnishings such as study desks, chairs, beds and linen. In appreciation of the selfless work Santulan does in pursuit of social justice for some of the most marginalised communities in Indian society, this group sought to raise $15,000 on crowd funding platform, iPledg. Their 90 day campaign exceeded their $15,000 target, with the campaign raising $26,790, all of which was allocated to the works of Santulan.

The benefits of social entrepreneurism are obvious, but the devil lurks in the inevitable detail. Whilst most social entrepreneurs are well meaning, their skills may be questionable, especially in the areas of sustainability, engagement, and scaling. In addition, both the skilled and less adept initiator will come up against the policymakers who often do not fully understand social initiatives, which can lead to the project stagnating or stalling completely. Policymakers often do not share the same passion as the social entrepreneur, with their priorities being more around mitigating risk and avoiding political repercussions, so the meeting of the two minds requires some highly skilled massaging of the differing agendas. And once underway, longer term sustainability of projects can be compromised by the entrepreneur confusing “not for profit” with “not profitable”, thus running out of funding requiring to maintain momentum or retain knowledge and resources.

Posted on November 8, 2015 By iPledg With 0 comments

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Posted on October 15, 2015 By Bob With 0 comments