Tag Archives: PR

506 Docs Charts Course to Help New Start Ups Prepare Legal Documentation for 506 Reg. D Private Placement Offerings

10 Jul

506 Docs launches IndieGoGo Crowdfunding Campaign to fund new website that will provide 506 Reg. D FAQ sheets, tutorials, blogs and templates

By Robert Hoskins

Temple, Texas – The Texas-based Encite Financial Group announced a new business unit called 506 Docs, which will help small business owners who want to take advantage of  the SEC’s Regulation D during the private equity investment capital raising process.  To fund the new division, 506 Docs management team has launched an IndieGoGo Crowdfunding Campaign to raise the funding needed to educate the general public on the Rule 506 exemption, which allows an issuer to raise an unlimited amount of capital from an unlimited number of “accredited investors” and up to 35 non-accredited investors.

506 Docs Blog for Regulation D advertising campaigns

Regulation D 506 Equity Crowdfunding Campaigns

The website’s goal is to  provide tutorialseducational blog postsFAQ SheetsPrivate Placement Memorandum (PPM) templates and everything else  that a small business owner needs to file the right legal paperwork to conduct a small capital raise using the Reg. D rule.

A new portion of the Reg. D 506(c), which was passed on Oct. 23, 2014, now allows small business owners to market private equity investments opportunities using the SEC’s new General Solicitation rules, which allow broker/dealers to use advertising, PR, social media and other types of marketing campaigns to target only accredited investors.

According to the 506 Docs blog, Facebook and Twitter both got started raising capital using Regulation D. It might be hard to believe but Facebook’s first capital raise yielded just $6,750, but now has a market cap of $172 Billion that was developed in only 10 years. For people curious about researching their Reg. D paper trail, the 506 Docs blog contains links to Facebook’s first few SEC filings.

Reg. D is relatively unknown in the world of small business finance. While doing their research the 506 Docs management team discovered that finding real-time information from knowledgeable industry experts in the crowding in the industry was tough.

As a result the 506 Docs management team’s primary research, they determined that over $1 Trillion was raised using Regulation D during the period between 2010 to 2012, and then the industry saw a dramatic spike during 2013, when the SEC finally released the formal rules governing Regulation D investments.

 

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hyperfund Launches Business Crowdfunding Site that Makes It Easy for Investors to Find, Research and Invest in Private Business Equity Deals

9 Jul

hyperfund offers crowdfunding site where businesses at any stage of the growth cycle can find and reach potential investors using crowdfunding advertising, email marketing, PR and social media campaigns

Anacortes, Wash. – hyperfund is a new business crowdfunding marketplace where investors can easily find, research and invest in private businesses. It is a crowdfunding site where entrepreneurs can easily and efficiently reach a large number of potential investors and is one of the first crowdfunding platform providing all three primary strategies for businesses raising capital on the internet with rewards, security, and debt crowdfunding options.

hyperfund enables entrepreneurs, startups as well as growing businesses to take advantage of the explosive growth of crowdfunding campaigns and leverage the power of the SEC’s new General Solicitation Rules that allow private companies to market their equity investment opportunities to millions of accredited investors via advertising, marketing, PR and social media programs.

Hyperfund Local National Crowdfunding for both Rewards and Equity Based Crowdfudning Campaigns

Hyperfund Local National Crowdfunding for both Rewards and Equity Based Crowdfudning Campaign

The investing ecosystem continues to evolve as traditional sources of funding, angel investors and venture capitalists, focus more on revenue-producing businesses. At the same time, new technologies enable new ways for growing companies to connect with potential investors. Crowdfunding is becoming a primary solution for pre-revenue businesses to raise capital and most crowdfunding platforms, to date, have only offered investors a single option.

hyperfund offers three different crowdfunding options:

  • Rewards, such as preferential product acquisition opportunities,
  • Security, to participate more directly in a company’s financial growth, and
  • Debt, to be repaid over time.

“Now startups and growing businesses can raise capital on the Internet with a reward-based seed funding round to validate their business model, followed by an equity or debt round on the same platform,” said hyperfund’s CEO Denis duNann. He emphasized, “On hyperfund’s marketplace, investors can now back business-focused rewards rounds, track the businesses performance and potentially invest in a later securities round.”

Luan Cox, CEO at partner company Crowdnetic, stated, “We are impressed with hyperfund’s unique and complete approach to business crowdfunding. The breadth of their offerings addresses the needs of small businesses throughout the growth cycle.” She added, “We are pleased to include their Private Issuers Publicly Raising (PIPR) listings in our marketwatch.com feed, the nation’s first real-time aggregated listing of offerings and pricing information on private issuers raising capital.”

There are no transaction or subscriber fees for investors to research private offerings on hyperfund. There are no upfront fees for entrepreneurs to easily and efficiently reach millions of potential investors.

hyperfund is launching with two recent winners of the Florida Atlantic University’s Business Plan Competition:

  • BiologicsDirect™, the first and only online virtual marketplace that connects blood centers, which are the suppliers of blood products, with hospital and blood center users, positively impacting critical blood-product supply chain management.
  • Owl Educators, with its breakthrough online service, connects tutors and students, making their educational relationship more effective and efficient.

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New Crowdfunding Consulting Site Aims to Take Hands-On Approach to Help Crowdfunding Campaign Managers Achieve Higher Success Rate

29 Apr

KarmaKrowd Invites the Crowdfunding Industry’s Best Business Development, Advertising, Email Marketing, PR  and Social Media Campaign Experts to Help Crowdfunders Put Together Leading-Edge Fundraising Campaigns

By Robert Hoskins

Chicago, IL  – KarmaKrowd.com, a leading rewards-based crowdfunding site, announced that it will be providing a full suite of crowdfunding consulting services for its fundraising campaign managers who are seeking a professional team of experts to help them plan successful crowdfunding campaigns. And campaign managers will work their way through a four-phase process to perfect their campaigns.

KarmaKrowd Building a Legal, Financial, and Marketing Crowdfunding Consulting Firm to Offer Crowdfunding Campaign Managers Better Chance for Success

KarmaKrowd Building a Legal, Financial, and Marketing Crowdfunding Consulting Firm to Offer Crowdfunding Campaign Managers Better Chance for Success

“Using a completely different strategy from other Crowdfunding platforms such as Kickstarter or Indiegogo, KarmaKrowd takes a robust approach to every campaign that launches on our site,” said Cindy Summerfield, KarmaKrowd’s CEO.  “We start by offering the best legal services possible to pursue an in-depth Intellectual Property (IP) protection strategy.  Once their IP is buttoned up, KarmaKrowd helps clients engage in a four-step campaign building process and provides a directory of professional manufacturing, distribution and fulfillment consultants who can help campaign managers build a streamlined business model.”

“Once campaign managers have a good business plan and crowdfunding profile in place, we allow them to Beta test it on our internal database of KarmaKrowd users to gather instant feedback from insiders. This interactive process allows all users to learn from each other and build a best practice consulting service from both paid Alpha and Pro Bono Beta professionals,” Summerfield continued.

KarmaKrowd’s four-step crowdfunding consulting process includes:

    1.  The Idea Phase is the first step which assesses the potential patentability of the client’s idea and whether or not the branding infringes on any existing trademarks that have been filed with the United States Patent and Trademark Office (USPTO).
    2. The Alpha Phase is the second step when a product/service idea is transformed into the beginning stage of a crowdfunding campaign. During this phase campaign managers have the option to browse through KarmaKrowd’s directory of business consultants to build a team of experts who can provide direction on how to shoot a great pitch video, how to write a persuasive crowdfunding profile and offer rewards/perks that offer the right calls-to-action to entice backers to support their campaign.In order to avoid a growing trend in crowdfunding campaigns of meeting funding goals, but failing to deliver the goods, Alpha Team consultants can help to ensure that campaign managers have a thorough understanding of their cost of goods as well as assist in the building of business plans, signing up a manufacturer, building distribution and fulfillment channels and planning integrated digital, multi-channel marketing campaigns.
    3. The Beta Phase is the third step once campaign managers think they are ready to launch their campaign live they move their campaign into the Beta Phase. This removes the veil of secrecy so that users can provide private comments and instant feedback to campaign managers to help them make last minute adjustments.
    4. KrowdReadyPhase is the final step when campaign managers signal they are ready to launch their campaign. The KarmaKrowd staff will help the campaign manager put on the finishing touches.


KarmaKrowd Business Services Directory

KarmaKrowd encourages advertising, business, competitive analysis, distribution, email marketing, film production, financial, fulfillment, manufacturing, manufacturer reps, public relations, and social media consultants to sign up for a free KarmaKrowd Business Listing.  Once vetted and approved Alpha Team consultants will be able to offer their expert, value-added crowdfunding business consulting services for a fee to campaign managers.

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EquityNet Unveils First General Solicitation Equity Crowdfunding Investment Deal Distribution Network

18 Feb

EquityNet Teams Up with MarketWatch, CrowdWatch to begin Broadcasting Equity Investment Deals Where Accredited Investors Can Invest Online through Crowdfunding Platforms such as SeedInvest and RealtyShares

By Robert Hoskins

 More than 4,500 broker dealers now have the legal right to market equity investment deals via advertising, marketing, PR and social media now that the SEC has lifted the 80-year ban on General Solicitation.   And while most broker dealers have not taken advantage of the new law, EquityNet has now taken the lead by announcing the launch of a new equity investment deal distribution network with Dow Jones MarketWatch via Crowdnetic and with North Capital Private Securities.

Through partnerships with Crowdnetic and North Capital, businesses can now use EquityNet to showcase their private offerings on MarketWatch, CrowdWatch, and other crowdfunding platforms such as  SeedInvest and RealtyShares, thereby gaining exposure to thousands of additional investors.

EquityNet Equity Crowdfunding Platform for Accredited Investors

EquityNet Equity Crowdfunding Platform for Accredited Investors

EquityNet founder and CEO, Judd Hollas, stated, “I am excited about our new partnerships with Crowdnetic and North Capital Private Securities.  Businesses using EquityNet now have the unparalleled ability to distribute their deals to large extendable networks featuring tens of thousands of visitors and potential investors.”

“As a leading provider of financial information and market data, we at MarketWatch are pleased to offer the first publicly available private offerings on a major financial media website” said Ian Rosen, Vice President and General Manager of MarketWatch.

According to Crowdnetic founder and CEO, Luan Cox, “EquityNet is a wonderful addition to our Private Offerings dashboard on MarketWatch and CrowdWatch and is bringing many new private offerings and quality businesses to MarketWatch, CrowdWatch, and our broader distribution network.”

In addition to deal distribution with MarketWatch and CrowdWatch, businesses using EquityNet can also tap into the placement capabilities of North Capital Private Securities, a registered broker-dealer and member of FINRA and SIPC, to distribute their private offerings to other crowdfunding platforms such as SeedInvest and RealtyShares.

“EquityNet has built a great technology platform that prepares entrepreneurs to access the capital markets and enables investors to research, compare, and benchmark private companies.  We are excited for the opportunity to offer North Capital’s distribution abilities to their customers,” said Jim Dowd, Managing Director of North Capital.  “We expect that our relationships with other platforms, angel networks, independent broker-dealers, investment advisors, and institutional investors will help many EquityNet customers secure the financing they need to grow their businesses.”

Privately-held businesses can use EquityNet’s new distribution network and patented technology to showcase their private offerings on MarketWatch and CrowdWatch with the click of a button and on other crowdfunding platforms through engagement of North Capital Private Securities.  Both of these distribution abilities are readily available to all businesses that sign up with EquityNet and create a free business profile.

According to industry research by Massolution and the World Bank, crowdfunding generated $5.1 billion in funding transactions in 2013 and will surpass $300 billion in funding transactions by 2025. Within the next year, Title III of the US JOBS Act is expected to go into effect, allowing non-accredited investors to invest in startups in exchange for equity.  Experts have estimated that crowdfunding could expand the population of potential investors from 2 million to over 50 million investors.

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JobsinCrowdfunding.com Launches the Industry’s First Job Recruitment Website for Crowdfunding Professionals in Engineering, Finance, Marketing and #Sales Careers

2 Feb

The advanced career placement platform will connect job seekers with crowdfunding intermediary employers and service providers that are expected to create 170,000 jobs over the next five years

By Robert Hoskins

The booming crowdfunding industry was predicted to blossom to an impressive $5.1 billion industry in 2013 and is expected grow to over $93 billion by 2025.  In the past 12 months more than 600 startups have launched new businesses and are now seeking very specialized crowdfunding careers that have never existed before.  To adapt to this highly personalized demand, JobsinCrowdfunding.com has introduced its next generation recruitment platform, which delivers superior job posting capability, enables employers to access the latest technology for candidate matching and provides the one central specialist site for all Industry job seekers and employers alike.

Jobs in Crowdfunding Launches the Industry’s First  Job  Recruitment Website  for Crowdfunding Professionals for Engineering,  Finance, Marketing and Sales Careers

Jobs in Crowdfunding Launches the Industry’s First Job Recruitment Website for Crowdfunding Professionals for Engineering, Finance, Marketing and Sales Careers

“The Crowdfunding industry needs a hiring solution that is simple, industry specific and most importantly cost-effective,” said Lucia Amador, Limitless People’s CEO.  “Our platform offers a wide range of monthly access packages that can be easily budgeted and will allow small companies to hire as many employees as they need for just one set price, which provides an incredible ROI.”

“Our next generation Jobs in Crowdfunding platform provides employers with advanced ‘anytime’ direct access to industry specific candidates including a customized hiring module that can isolate selected candidates from the open market during the initial interview process to maximize efficiency,” Amador added.

The career placement site offers employers five cost-effective packages, including: Starter, Basic, Standard, Premium and Executive Search.  These packages offer employers an advanced, but affordable hiring solution that addresses their unique recruiting needs quickly and easily.

For crowdfunding startups that have limited resources and budget, Limitless People’s management team offers an Executive Search Package, which allows employers to leverage the firm’s extensive recruitment experience.  Seasoned HR professionals can be utilized to provide customer-tailored job searches allowing crowdfunding companies to stay focused on their core business of raising money for campaign managers.

For crowdfunding intermediaries, Limitless People offers cost effective access packages so that all recruitment activities can be integrated into one place effectively streamlining their candidate search activities rather than posting jobs and collecting candidates from multiple sources to save considerable time and money, while achieving higher results.

For crowdfunding job seekers, the free JobinCrowdfunding.com site is already live and accepting resumes to help candidates find new jobs and careers in the crowdfunding industry.

Limitless People is a worldwide software application development company that specializes in building career placement platforms for the crowdfunding, sports, entertainment, software, recruitment and telecommunications industries. For more information on Limitless People professional services, please visit the company’s website at www.limitlesspeople.com.

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How to Plan the Right Sized Marketing Budget to Conduct a Successful Crowdfunding Campaign

20 Oct

The #1 Mistake that Crowdfunding Campaigns Make Is Not Spending Enough Money on Marketing to Reach a Sufficient Universe of Potential Donors/Investors to Complete a Successful Fundraising Campaign

By Robert Hoskins

For Fortune 500 companies in the United States, launching a successful product or service involves many months of research, product development, focus groups, and beta testing before introducing a product or service into a competitive marketplace.

In addition, successful campaigns hire professional advertising, marketing, PR and social media firms that know how to target and reach a very specific target audience with carefully engineered marketing messages designed to elicit a predetermined response rate such as making a donation or investing in a small company’s equity stock.

Front Page PR is the #1 Crowdfunding PR firm in America

Front Page PR is the #1 Crowdfunding PR firm in America

Success is very rarely achieved by building a single-page crowdfunding profile  with limited company or product information and hoping that there is enough website traffic on sites such as Kickstarter and indiegogo to find sufficient donors to push a crowdfunding  campaign reach its financial goal.

This is reason that Kickstarter campaigns have a 65% failure rate and more than over 90% of indiegogo campiagns fail to achieve a 100% funding rate.

Many entrepreneurs that launch crowding campaigns are duped into working with crowdfunding consulting companies that charge $100 to do unlimited press releases or think they can be successful by asking crowdfunding PR and marketing companies to work on a contingency-basis.

Other marketing firms offer low-cost crowdfunding training programs that claim to teach novice crowdfunding campaign managers how to plan and execute their own marketing, PR and social media campaigns. The problem with all of these cheap marketing solutions is that they are offered by crowdfunding consultants with little to no real marketing experience and take advantage of entrepreneurs that do not know better. Most copy their workbook marketing materials straight out of college text books that can be bought at any book store for $20.

Professional adverting agencies, PR firms and marketing consultants that can deliver real results usually charge $5,000 to $10,000 per month for their services because they know they can deliver the marketing results that crowdfunding campaign managers need to complete a successful fundraising drive.  Anyone that charges less does so for a reason.  They simply do not have the experience to get the job done right.

Experienced marketing firms that can deliver the goods do so because they have a staff of seasoned, highly trained marketing executives with 15 to 20 years of proven, real world experience.  They also have the specialized media planning tools that cost thousands of dollars per year to use, but are essential in planning targeted marketing campaigns.

Anyone can buy a text book on how to fix cars, but without an auto shop full of experienced mechanics and the right set of tools, they will fail miserably when trying to rebuild a motor.  The same is true for people that try to plan marketing campaigns without the right set of media planning tools and professional skills that take years to learn.

In addition to the right tools and highly trained marketing executives, marketing campaigns cost money to implement.  They involve many hours of researching media outlets,  building databases of reporters and bloggers, and hundreds of hours send to pitches to the media and social media networks.  This work load simply can not be executed for free.   An important rule to remember is that it takes money to make money. The same is true when launching a successful crowdfunding campaign.

How much does it cost to conduct crowdfunding marketing, PR and/or social media campaigns? The answer really depends on selecting the target audience that needs to be reached, the number of media outlets that can effectively reach the desired target audience, and the time it takes to evaluate various media outlets and prioritize which ones will be the most effective.  This effort requires a tremendous amount of time and effort.

Media outlets also have a ton of different options that can be utilized to reach various segment that comprise the right target audience.  Most media outlets offer digital/print advertising, email blasts, direct marketing, blogs, newsletters and multitude of other marketing options that all cost money to reach the correct target audience.   They also have a masthead full of reporters that might be enticed into writing a news article for free, but pitching stories to the press also takes a considerable amount of skill, expertise and experience.

The work doesn’t stop there.  Next comes the conversion rate factor.  A typical marketing “call-to-action” can persuade around three-percent (3%) of prospective donors to visit a crowdfunding campaign’s profile.   More critical is the actual number of visitors that read through the crowdfunding profile and are converted to actual donors or investors, usually around one percent (1%).

The final question to be answered is how many people need to be reached with 3% call-to-action and a 1% donation/investment rate to meet a crowdfunding campaign’s financial goal?  And most people do not respond to the first message they are exposed to. It usually takes three or more exposures to cross the “threshold of consciousness” and be enticed into following the desired course of action; in this case making a crowdfunding donation or equity crowdfunding investment.

A simple way to figure out how much money needs to be spent on marketing is for Crowdfunding campaign managers to divide their total fundraising goal by the lowest priced perk being offered in order to determine how many donors they will need to achieve their goal.

For example, a $10,000 goal divided by a $25 perk would require 400 donors to become successful. At a 3% response rate, a campaign would need to reach a total universe of 1,333,330 potential donors to convince at least 40,000 prospects to visit the crowdfunding profile and convert 1% into active donors.  The cost to reach any given target audience really depends on the industry be served and the costs to reach them through paid advertising and PR/media relations campaigns.

The bottom line is that crowdfunding campaign managers need to plan on spending at least $5,000 per month to conduct a successful campaign.  And most of the work needs to be done several months prior to the campaign to build a loyal crowd of followers/donors who will support the campaign once it goes live.

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More Articles on Crowdfunding Marketing Strategies:

Fundly Promotes Crowdfunding-for-Good Platform to Nonprofit Technology Conference in Minneapolis

14 Apr

By Robert Hoskins

Fundly spent the weekend promoting its Crowdfunding-for-Good platform fundraising event registration features of it crowdfunding-for-good platform at the Nonprofit Technology Conference.    The new crowdfunding tools leverage fundraising, social media, and mobile applications to assist nonprofits in making their fundraising events more effective through advanced technology capabilities.

Fundly.com Crowdfunding Platform for Social Good Projects and Campaigns

Fundly.com Crowdfunding Platform for Social Good Projects and Campaigns

With thousands of nonprofit organizations, volunteer groups and individuals using Fundly’s platform for a wide range of fundraising events such as galas, dinners, marathons and other Run Walk Ride events, Fundly developed its new fundraising events application to seamlessly combine fundraising and event registration functionality into one seamless experience to make any fundraising event easier to manage and more successful.

“Think Facebook meets Eventbrite meets TeamRaiser and you’ll see why Fundly’s new fundraising events platform is so easy to use that even volunteer fundraisers who have never raised money before can succeed on their first try,” said Fundly CEO Dave Boyce.

The Fundly team that created the event fundraising platform includes the designer who built the Nike+ running app, the product manager who built Yahoo! News and the developer who built Quicken for Windows. Taking lessons learned and best practices from leading fundraisers, including Habitat for Humanity, Teach for America and Children’s Miracle Network Hospitals, Fundly’s new event fundraising platform is unparalleled in its ease-of-use and integration of fundraising, social media and mobile applications.

The launch customer for Fundly’s event fundraising platform is Orlando Health, a non-profit hospital network in Orlando, FL that includes Arnold Palmer Hospital for Children and Winnie Palmer Hospital for Women & Babies. When Orlando Health used Fundly for a pilot fundraising event and raised 500% of their fundraising goal, they switched all 25 of their annual fundraising events from Blackbaud’s fundraising platform to Fundly.

“Most fundraising events treat registration and fundraising as two separate activities, which results in a disjointed experience for the participant and leads to a lot of drop-off with registration levels. Fundly creates a seamless fundraising event experience that makes it easy for volunteers to fundraise using social networks, like Facebook, that they are already familiar with,” said Michael Schmidt, Director of Digital Media & Philanthropy for Arnold Palmer Hospital for Children.

To learn more about the Crowdfunding industry and startup local Crowdfunding community outreach programs, please join our free American Crowdfunding Center on LinkedIn.com or Meetup.com and don’t forget to follow us on Twitter. Both social media sites allow platform owners and crowdfunding campaign managers to post their news and press releases into the discussion forums. This will help us find new and exciting crowdfunding stories to cover.  We are currently covering crowdfunding topics such as Business Services, Cities/Communities, Crowdfunding Platforms, Education, Film/Music/Entertainment, Games/Videos, Social Good, Solar and Software/Hardware Technology Gadget crowdfunding PR campaigns.

Kickstarter vs. IndieGoGo: Which is the Best Crowdfunding Site and Why?

17 Feb

How to Pick the Best Crowdfunding Sites for Successful Fundraising Campaigns

By Robert Hoskins

In the booming Crowdfunding indsutry, the most important question that every Crowdfunding campaign manager (Crowdfunder) asks themselves is, “which Crowdfunding site is the best platform to launch my fundraising campaign?

Which Crowdfunding platform such as IndieGoGo.com vs. Kickstarter will offer the best chance of success?  Is it better to risk an “all or nothing” strategy with a Kickstarter campaign and hope that it funds 100%, and then pay a commission of 5-percent?  Or is it better to go with an IndieGoGo campaign, where Crowdfunders will be allowed to keep all the money regardless of whether they reach their Crowdfunding goal or not, and then pay a higher 9% commission fee?

These may seem like simple questions, but they will get complicated quick when trying to make a wise, sound financial decision on which Crowdfunding website is best for a given campaign, especially when the there are 900 different platforms from which to chose. And when Title II, Reg. D Equity Crowdfunding becomes legal, they will get even more complex, but we will save that topic for another article.

Here are a few simple questions to help analyze a Crowdfunding portal’s performance to find out which one offers Crowdfunders the best chance of success. Selecting the best Crowdfunding site to launch a fundraising campaign can be boiled to a few simple questions:

1. How much web traffic does a Crowdfunding portal generate?

2. What is the composition of the site’s  target audience demographics?

3. What is the site’s industry reputation?

4. Does the site provide any analytic information on its vertical segment landing pages?

5. Does the site provide any type of audit statement on how many investors the site has registered and the propensity for them to donate or invest a particular industry, product or service?

In the future, all Crowdfunding websites need to provide an industry-standardized Crowdfunding Audit Statement.  Using Google Analytics or other types website traffic analysis tools, all portals know exactly how much web traffic their entire website receives; what landing pages are receiving the most traffic; what search engine keywords are delivering the most donors/investors; and what external websites are referring the most visitors.

This chart is from Alexa.com:

What is the Best Crowdfunding Site? Kickstarter vs. IndieGogo

What is the Best Crowdfunding Site? Kickstarter vs. IndieGogo

This chart is from Google Trends.

What is Best Crowdfunding Website? Kickstarter vs. IndieGoGo Google Trends Statistics

What is Best Crowdfunding Website? Kickstarter vs. IndieGoGo Google Trends Statistics

IndieGogo Crowdfunding Website Statistics Ranking:

IndieGoGo Crowdfunding Website Ranking

IndieGoGo Crowdfunding Website Ranking Statistics

Kickstarter Crowdfunding Website Statistics Ranking:

Kickstarter Crowdfunding Website Ranking Statistics

Kickstarter Crowdfunding Website Ranking Statistics

Kickstarter has a global ranking of all websites on the internet at a ranking of #830 compared to IndieGoGo’s global ranking of #2,422.  In the United States, the largest Crowdfunding donation market in the world, Kickstarter has a ranking of #399 compare to IndieGoGo’s ranking of #1,140.

Another important statistic to review is the number of websites that have links to pointing to Crowdfunding websites, which helps their search engine optimization and places them higher in the search engine results.  Kickstarter has twice as many link backs at 84,130 compared to IndieGoGo’s link backs of 40,720.

Based on the information above, it is easy to see that Kickstarter’s numbers exceed IndieGoGo’s by a large margin.

Last, but not least, we are going to discuss how Crowdfunding sites at the top of pack got to their current position and why every successful business development strategy includes a wide variety of marketing campaigns that are designed to build a profitable sales and distribution channel for the company’s products and services.

If you do a Google search on “Kickstarter,” the search will turn up 25.7 million results.  A search on IndieGoGo yields a 5.5 million search results. How did Kickstarter amass 5 times more coverage and the resulting link backs to their website?    The simple answer is marketing.  The Kickstarter Handbook guides Crowdfunders through a step-by-step process on how to launch a successful crowdfunding campaign.

One of the most important things the book covers is how to use public relations to write a press release and issue it over a professional news wire service such as Businesswire.com, Marketwire.com or PRNewswire.com.   The purpose of a press release is to feed news to a group of reporters on a news circuit or beat.  Every day reporters scan these news wires for potential stories to cover.  Issuing a press release with the word “Crowdfunding” in it will cause a press release to automatically hit every reporters inbox with a Google alert set on the keyword.

All Crowdfunding sites should work with the major news wire services to make it as affordable for their Crowdfunders to issue as many press releases as possible.  Marketwire allows a Crowdfunder to add two URL links to any website related to the press release and each press release is usually picked up by 75 to 100 news outlets.  At 200 link backs per press release issued, it should be easy for any SEO expert to understand why press releases are so important.

A well-written press release combined with an intelligent PR agency that has developed media relations with the 450+ reporters that cover the Crowdfunding beat usually results in several news articles, which provides credibility for the Crowdfunding campaign and a significantly higher rankings for the Crowdfunding portal hosting the campaign.

Kickstarter has done a tremendous job of teaching its customers how to successfully market their Crowdfunding campaigns.  It will be interesting to watch new Crowdfunding platforms as they come on line to see if they can match the marketing prowess of Kickstarter.  All Crowdfunding sites should should offer a Crowdfunding Business Partner program that offer Crowdfunders both an affordable price on issuing press releases as well as a list of PR firms that are willing to help their Crowdfunders launch cost-effecting PR and social media campaigns.

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Click here to setup a 30-minute crowdfunding consulting session.

Building a Mature Crowdfunding Industry with Business Partner Programs

31 Jan

By Robert Hoskins

As the Crowdfunding industry begins to mature, more and more Crowdfunding Service Providers (CSP) will need to find a way to differentiate their platform versus the competition.   New industry players that have run eCommerce centers and industry portal sites before will have an edge on the new Crowdfunding platforms simply because they have more experience in building, not only the superior technology underneath, but also nurturing the Business Partner Programs and Channel Marketing Programs that will make their Crowdfunding clients more successful.

Providing a portfolio of professional Crowdfunding services such as news wire press release distribution packages from vendors such as Businesswire.com, Marketwire.comPRNewswire.com and PRWeb.com  and list of public relations firms to help Crowdfunding campaign managers write professional profiles, press releases, write media pitches and build custom tailored media databases of the right reporters to pitch their respective stories would significantly improve the Crowdfunding campaign’s ability to generate positive publicity.

The more positive stories that a Crowdfunding campaign can generate, the more potential donors they can reach with their marketing messages.   According to recent news reports, Kickstarter only had a success rate of 43 percent in 2012, but if they provided a Business Partner Program that provided a list of PR, SEO and marketing vendors to help their Crowdfunding campaign managers become more successful, their success rate should improve dramatically.

In addition to marketing vendors, it might be wise to include a group of professional for-profit and not-for-profit fundraising firms that have been collecting donations via regular marketing programs for decades.  Writing professional case statements is very important in the fundraising world as is writing professional bios for the board of directors.

Last, but not least, how does one go about building a potential donor list? Instead of building a campaign with lofty goals and hoping that it works, building a campaign with a case statement, goals and objectives as well as the strategies they plan to use to achieve their goals would serve a very useful purpose.

While not quite the same thing as fundraising, in the new world of Crowdfund investing, understanding how to build channel marketing programs to reach decision makers or potential investors in vertical business-to-business market segments will be critical to achieving success.

Once Equity Crowdfunding becomes legal,  an even more important demand for financial services will be needed. Setting up corporate structures and stock plans will be critical in determining whether not professional equity investors will get involved with the Crowdfunding industry.  Issuing various types of stocks and the voting writes associated with them will be a critical factor in long term success for any deal.  In today’s world, many venture capitalists will not touch a “hairy deal,” which means too many people are involved with voting rights to allow them to push the exit strategy in the direction they want it to go.

And how the return on investment for the deal is structured will be very important.   Should it be a debt, revenue sharing, dividend or some of other type of equity investment structure? For example, there are many tax advantages to buying a company with debt, but most people might not consider a debt offering unless they consulted with a seasoned venture capital firm.  Understanding the complicated world of finance and venture capital will be critical to Equity Crowdfunding campaigns as well as the portals offering them.

Overall, experts say that there is around $30 trillion sitting in banking and savings accounts that could possibly be invested in the Equity Crowdfunding industry once it gets underway.  But before the Crowdfunding industry expects to receive even one-half of one-percent of this money, the industry needs to figure out a way to achieve success rates of 50% or better.  A goal of 60% of 75% would be much better, but in the financial markets there never is a “sure thing.”

In conclusion, it would be much more comforting for the SEC to allow 98% of Americans to invest up to $2,000 per year in an industry that offers them at least a 50/50 chance of receiving a  good return on their investment.  The only way to  build more successful Crowdfunding industry is to provide campaign managers with a tool chest of seasoned and experienced marketing, fundraising and financing executives before, during and after their Crowdfunding campaigns.

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Planning a Successful Crowdfunding PR Campaign

8 Dec

Planning a Successful Crowdfunding PR Campaign

Planning a Successful Crowdfunding PR Campaign

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