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7 Tips For Running A Successful Crowdfunding Campaign For Your Startup

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A lot of fans of Addicted2Success have shown interest recently in using crowdfunding for their startup. I thought I would make your life easy and bring you some tips from Rick Chen of Pozible, which is the largest crowdfunding platform in the Asia Pacific region and the 3rd largest globally. They have hosted more than 8000 projects and raised around $25 million dollars to date. The platform started out more for the creative arts industry, but now they have branched out into all sorts of different industries.

Pozible uses the reward based crowdfunding model, which is essentially pre-purchasing goods or services. The campaigns on the site must have an outcome so Pozible knows where the money is being spent. You must hit your funding target otherwise the project doesn’t go ahead, and you don’t get any of the pledges. Of course, you can always run the campaign again, but you have to get the pledges from scratch. The reason Pozible uses the all or nothing model is that they ask their users to only put the minimum amount they need. Anything you get on top of your target still gets to go towards you project. This way of thinking works well because if you know the minimum amount you need to do the project is $13k and you don’t get it, then logically speaking, you won’t proceed.

The idea came when Rick and his business partner were trying to figure out how they could help some of their creative friends raise money. One of those friends was brewing his own beer and having people prepurchase it. Rick and his business partner thought that a crowdfunding platform would be the best way for him to do that, and so, Pozible was created.

The most popular pledge amounts in order are $50, then $25 and then $175. In terms of the largest campaign so far, the award goes to a Chinese Smart Watch startup that raised $800k using Pozible.

Below are Rick Chens 7 tips for running a successful crowdfunding campaign.

1. Know the benefits of crowdfunding

One massive takeaway that I got from interviewing Rick Chen was that I always thought the whole point of crowdfunding was about raising money. While raising money is important, the main benefit you get is that it helps you build an audience for your startup and engage with your community. Even if you only raise a small amount, the raving fans you get on the platform are far more valuable, and you can build a business around them. A few Melbourne cafes have used the platform to sell coupons to their surrounding neighborhoods before they open. When the doors finally open they have had people lining up to use their coupon who now know their brand and live locally to their café – what a great way to gain exposure for your startup. As these people sit down, they can see their faces on the wall as part of their reward.

In general, technology projects tend to raise a bit more than art projects, so keep this in mind.

“If you have a product, that is based on some form of technology, you can use the platform to build your product and get real life feedback from your prospective customers”

2. Tell a great story

To be successful with crowdfunding, you must be personal, genuine and be a person with a real life story that is relatable. If your idea is airy-fairy, your chances of success are very low.

Use the format of a video to tell your story as it’s very convincing and very efficient to get your message across in the quickest amount of time. The video should be under 3 and a half minutes maximum. The one thing that should be in your video is a face, and it should be presented like you are telling your story to a friend. The questions you need to answer in the video are why you’re doing this, why your story is important and what people get out of supporting you.

Show evidence about your project like a prototype or what you have already achieved. This makes your story come across as legitimate. You do not need to do a lot of fancy things in the video otherwise it will come across as a branding video, not a pitch video. The video doesn’t have to be very professional and can just be done on your iPhone or webcam, although better quality is always a good thing, even though, the audience are not that picky. Make sure your video is trying to convince the audience and not Pozible of your story.
Don’t forget to include plenty of photos with your campaign. Rick says that photos displayed in a portrait layout work better than landscape because of the page layout of Pozible. Most campaigns on Pozible don’t have enough photos so try and put some really high-quality ones alongside the story. While it’s important to have text, a lot of people, don’t read it so make sure you have a good contrast between photos, video and text to cater for everybody’s needs.

3. Set the right minimum for your pledge

Knowing what target to set for your pledge depends on the actual project itself. Setting the target is a double edge sword because the higher you set it, the harder it is to reach. At the same time, you want to make sure you are asking for enough money to complete your project.

Once you have hit 100% of your target, there are other ways to get more pledges later on. There has been a lot of success on Pozible where campaigns have been reached and then later, a follow-up campaign is launched. An example of this is Adore Home Magazine, which has successfully funded three issues of their magazine on Pozible.

“Ask yourself, if the target of your project is $10k and someone offered you $7k to do it, would you still go ahead. If the answer is yes, then your target is too high”

4. Supporter’s care about the rewards

A good reward system combines tangible products, an experience and recognition together to attract supporters. Often people focus too much on the tangible products and discount the experience and recognition rewards.

A great experience might be if you were a musician you could have people pay $250 and you will come to their home and sing – you can’t buy this in a store. If you’re a startup and you’re trying to start a café, you could have one of your rewards as recognition where if someone pledges a certain amount, you put their name on the wall of the café.

The other thing you should think about when designing your rewards is that if your idea doesn’t work, are the rewards something that you can still deliver regardless?

5. Pre-launch and market your campaign

The maximum length of a campaign is on Pozible is 60 days. 30-50 days is usually a good place to start so that it doesn’t get too long and tedious. Before you even put your campaign up you should make sure that you have already launched it on social media to gather early stage supporters. Don’t make the mistake of launching your campaign with no marketing or traction beforehand. Most of the traction will be built from social media, not from the Pozible site – money won’t just fall out of the sky you must market it. As with any business idea or startup, you also need to have a social media strategy that involves your audience in the form of a content plan.

Rick says you should ask for pledges to your campaign around one to two times per day along with some content for your audience. Make sure you don’t ask for a pledge the same way every day and try and change it up.

One idea is to use the campaign update function on Pozible to tell your audience how far your campaign has come and what you’re working on for the campaign right now. For example, posting on social media the day the prototype becomes ready and then the next day you could say you just went to visit the manufacturer. As you approach the deadline for your project you should let people know and include some visuals, as this has been seen to be very effective in getting those last minute pledges.

6. Don’t be afraid to be quirky

There was a musician in Melbourne that wanted to raise a very small amount of money to buy a pint of beer and a chicken parmigiana at his local pub. His reason for starting the campaign was that it was hard to enjoy some of these simple pleasures being a musician, so he made the decision to turn on crowdfunding. The rewards he had on offer were anything from pledging a dollar so he will think about you when he drinks his beer, all the way up to $40 which allows you to join him in the pub to have a beer and chicken parma with him. As simple as this may sound, this campaign got a lot of media attention, and he got to have dinner with quite a few strangers after his campaign was complete.

While he didn’t make any money from the campaign, this story is very much a form of social engagement and could even be considered art. Could this be a clever way for your startup to test an idea or express your brand?

7. Take your startup overseas

On a platform like Pozible you can accept pledges from all around the world and they currently receive pledges from over 100 countries including China. Having launched in China last year, Pozible have already noticed that a lot of Chinese projects get pledges from overseas. This is a great way to gain overseas attention and money for your idea that could be the difference between success and failure.

Final Tips

If your campaign is not successful the most important thing to do is find out why, before considering to do another one. There is no exact timeframe for relaunching again, just make sure you understand why your idea is not selling. This will help you save money later on because you will have valuable market data around your idea. If you’re thinking of launching the campaign on a multiple crowdfunding platforms at the same time, this is a bad idea because people will support your idea no matter what platform it’s on. If you have two destinations for your prospects to go on and pledge, you will confuse them. Also, if you target is $50k and you set up a campaign on both platforms and only raise $25k on each, you end up having two failed attempts. If you setup on one platform you could potentially hit the $50k target instead of raising zero.

When I asked Rick what his favorite book was, he said that he enjoys content from the website “The School of Life.” This site helps educate people on the skill sets for life such as dealing with stress, managing relationships and staying emotionally healthy.

The future of crowdfunding is bright, and we will see more and more ways for it to be used. Already, Pozible are testing if research projects can be funded by their platform. They are also seeing farming being reinvigorated through crowdfunding, and having rewards be delivered in the form of fresh food from local farmers. Traditionally farmers relied on the big supermarket chains to sell and market their produce; now crowdfunding has helped to level the playing field.

If you want to try your own crowdfunding campaign, then visit Ricks website Pozible to get started and become a game changer.

Tim is best known as a long-time contributor on Addicted2Success. Tim's content has been shared millions of times and he has written multiple viral posts all around personal development and entrepreneurship.You can connect with Tim through his website www.timdenning.net

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2 Comments

2 Comments

  1. Puranjay

    Apr 9, 2015 at 6:02 am

    Hey Tim, fantastic points all around. I would stress on the storytelling bit. Nearly all the most funded projects on Kickstarter do a wonderful job of telling a story.

    Pozible is very interesting as well. Good to see a more global marketplace. Some of the products from Chinese companies on the platform look pretty fun 🙂

    Oh and btw, the first link to Pozible in the article leads to a 404 error page. You might want to look into that 🙂

    • Tim Denning

      Apr 23, 2015 at 11:01 am

      Thanks Puranjay. I have checked the link and it works fine. That’s really weird.

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Startups

8 Key Factors That Discourage Investors From Putting Money Into Your Startup

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Today’s ideas are tomorrow’s winning businesses. Ideas executed brilliantly and with proper investment bring your business success. That is how the world of business got the likes of Apple, Google, McDonald’s, Amazon and so on.

But why in spite of the brilliant and promising ideas at the core of their business, many startups fail to attract investors? Why do investors hesitate to put their money into some startups? Well, investors have reasons and only by deciphering these reasons we could get hold of some deterrent factors that hold them back.

Let us explain some of the vital factors that prevent investors from putting their money in the startups below:

1. Inefficiency or Absence of Leadership Qualities

Inefficiency is the most significant deterrent factor for pulling the success of most startups. This can also be referred to as the lack of leadership qualities. Investors always want to make sure that they don’t lose their money through a company that has an extraordinary business model but no efficient and skilled business leader to make it successful. When fetching investment from investors, you need to offer a clear prospect and detailed plan of how you are going to achieve the goals.

2. Lack of Trustworthiness

An investor puts his money on a venture purely on the basis of the credibility and trustworthiness of the business. This is why besides having a sound business plan with clear objectives, you need to establish the integrity in terms of the security of the investor’s money and how the fund is going to be invested to give results as per business plan.

If an investor has a feeling that the startup may not have enough customers to fulfil its financial liabilities or if it finds that the business is hiding some information, it may further push the trust of the investors down. Total transparency and establishing the faith of the business brand are crucial for finding investors in favor.

3. Lacking Experience in Business Management

You have a great business idea backed up by a sound business plan and solid trustworthiness based on your background, but you have zero experience in managing a business. This is a serious reason for an investor to deny making any investment in your business. An investor cannot put his money just to allow you trying and learning your management skills the harder and riskier way. Uncertainty is the single biggest turn-off factor for any investor and lack of managerial experience is synonymous to that.

4. Business Model is Not Sound Enough

You have a business idea, some efficient, competent and experienced professionals as leaders, the great stamp of trust and pretty much everything that make a company look promising. But what about your business strategy and business model? Are they sound enough to take on the market competition and challenges for business growth? Well, this is what investors are most interested in.

In most cases, a business model is what makes an investor think twice and even take a backward step from investing in a startup. After all, your business model and strategy will decide how your business and products will be able to withstand competition and become victorious.

5. Taking Investors for Granted

This is a big mistake on the part of many startups. Just by becoming confident in the potential and the soundness of the business model and prospect, a business can consider getting investors on board requires just a little effort and time. But in reality, getting investors on board is the toughest thing a business can think of.

This is why without proper and meticulous preparation, it would be foolish to approach investors for your business. Most investors receive hundreds of such emails and a similar number of approaches through other means and they coldly just let them pass. This is why you need to send them very detailed proposals backed by strong recommendations and referrals.

6. Targeting the Wrong Investor

Every business has a target customer base, right? Not all customers are interested in every product in the market. Similarly, not all investors are interested in your business. Investors based on their prior experience and industry exposure, put their money in businesses that they know like their own palm of their hand.

So, targeting an investor who has no interest in your business will only drain your energy and bring you unnecessary frustration. When you are seeking investors for your software startup, don’t approach someone investing in real estate business.

7. Non-Realistic Proposal for Funds

Investors normally come with huge experience of your industry and so they have a clear idea about the fund requirements for your business startup. Moreover, they already have invested in other ventures or have gone through many proposals. Naturally, they have every bit of estimate already in their mind. So, any proposal claiming a lofty and unrealistic amount will only face rejection.

This is why it would be wise to become meticulous about your estimation of the required fund and calculation of various cost factors. Have meticulous details about every facet of investment backed up by breakup of the costs. Only when you can convince them with correct estimation, investors can take interest in discussing the matter further.

8. Make Sure Your Product Solves a Customer Problem

Will any investor put money in building a simple calendar app now? No, simply because such an app idea has no value for the end users now. Will an investor put money in a product that has already been outdated and has no use? No, no investor has to even go through such a proposal for dismissing them.

Well, to fetch investment, your product must be thoroughly customer-centric. It not only has to solve a problem but has to deliver some competitive value in comparison to similar products in the market.

Obviously, finding an investor for a new business is not an easy task, considering the huge competition that businesses need to deal with. But, if your business idea is unique and you fill all those requirements correctly as mentioned above, finding investors may not be as tough as it sounds.

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5 Must Have Branding Tools for Your Startup

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Your brand is more than just the colors on your website. And for startups, it’s important to create a strong and memorable brand from the beginning if you want to stand out from the competition, scale your company, and find your ideal customers faster.

Here are 5 simple tools that will help your company avoid branding mistakes, take charge of your visual identity, and set a solid foundation for future growth:

1. Graphic Design Software

The word “design” doesn’t have to be overwhelming. Before deciding on your startup’s logo, colors, designs, and overall tone, consider working with a brand strategist who can translate the core ingredients of your startup into a visual identity that speaks to your target market.

Brand strategists have expertise in the psychology of colors, shapes, textures, and words, and they will work with you to make sure that your branding appeals to your target audience. Once you have those basics of your brand established, there are several tools that can help your company refresh and maintain your visual identity.

The absolute best graphic design tool for non-designers is Canva. While the free version has a lot of functionality, the paid plans offer more customization such as the ability to import your exact brand fonts and colors.

But if your company handles all of your design in-house, you will need something more advanced than Canva. In that situation, I would recommend Adobe Creative Cloud to startups who work on their designs in-house, as it includes top-notch design software like Photoshop, Illustrator, Lightroom, InDesign, and more.

“Branding is what people say about you when you are not in the room – Jeff Bezos

2. Visuals & Creative Imagery

Have you ever wondered where your competitors get those beautiful branded photographs that end up on their website? While it’s possible that they worked with a photographer, it’s also likely that much of their imagery comes from stock photos.

Here are my recommendations on the exact places to purchase stock imagery to improve your company’s branding:

  • Creative Market – A treasure trove of quality visual imagery where you can buy anything from stock photos, to branding mockups, to social media templates (Facebook cover photo, anyone?), to custom fonts… the options are nearly endless.
  • Adobe Stock – Beloved by designers, and the platform offers tiered pricing plans based on your image needs and download quantity.
  • Pixels – If you’re on a tight budget and just need to grab an image or two for a blog post, you may be able to find what you need on Pixels – which is great because all of the photos and videos on Pixels are free!

3. Social Media Scheduler

You’re a leader. You’re an entrepreneur. Your staff, board, funders, and admirers depend on you to make big decisions, lead the ship, and plot the vision towards your company’s future. You don’t have time to stare at a blank screen every day wondering what to post on Facebook.

By using a social media scheduling tool, you can sit down for a few hours, schedule batches of content, and schedule the dates and times when it will post to your accounts over the next couple of months. Then, once the content is posted, you only need to worry about responding to comments and engaging with your customers. 21st century efficiency at its finest.

Popular social media schedulers include Buffer and Hootsuite, both of which include free and paid plans. Not sure what exactly to post? Check out these social media ideas from influential businesses. And if the idea of writing and planning months of content still overwhelms you, our next tool will help you stay organized and on-brand.

4. Editorial Calendar

When it comes to your content, it’s time to step it up a notch and start thinking like a media outlet. Every piece of content that you put out as a company, whether it’s an e-mail blast, blog post, social media post, podcast, or video, needs to be aligned with your brand.

Each major magazine maintains an editorial calendar which outlines the overarching theme for each of the upcoming 12+ months. By establishing a monthly content theme in advance, they create a framework to generate and organize their ideas.

Consider creating an internal editorial calendar that will guide your startup’s content over the next 6-12 months. The software tool you use to maintain your editorial calendar isn’t that important — I like to use Trello, but you can also create a simple numbered list in Google Docs or Microsoft Excel. You may be surprised at how quickly the creative juices flow once you have an editorial calendar in place.

“Design is the silent ambassador of your brand.” – Paul Rand

5. In-Person Networking

Offline efforts count towards your branding too! And if you run your entire startup from behind your laptop screen, you miss out on ample opportunities to build your business offline and gain local referral partners.

If you’re new to in-person networking, start by visiting Meetup.com or Eventbrite.com where you can browse for events in your area. Think outside the box when it comes to selecting events to attend. For example: If you’re a chiropractor, it makes sense to attend local holistic health meetups. But you could also attend a travel event and meet digital nomads who don’t yet realize that a chiropractor can help them recover after long plane rides.

Remember that you’re not at the networking event to make instant sales, you’re looking for referral partners and connections. Don’t be the person who tries to shove your sales pitch down everyone’s throat upon meeting them.

As you can see, there are many simple online and offline resources that can help you spruce up your branding, reach new customers, and pique the interest of your target market. If you take branding one step at a time and start with the tools above, you will be well on your way to creating a brand that your customers will cherish and remember.

Have you used any of these branding tools before? Are there any additional tools that have helped your startup’s branding shine? Share your thoughts below!

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5 Ways to Deal With Startup Uncertainty

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Starting your own company may sound like a dream come true in your mind, on social media, and to all the people looking on in envy from their office jobs. But when the fantasy fades, you realize how much uncertainty you now have in your life. The inherent risk in any startup is that you are trading the certainty of a normal job for real growth and freedom. What people get from office jobs is much more than a steady pay check and free coffee. It’s a sense of certainty that their lives, work, and finances are in order.

You will have to give up certainty to fully take on the risks of this lifestyle. It will be roller-coaster and something you need to prepare for. Logically, it’s easy to know that. But emotionally, there are so many ups and downs in an entrepreneur’s life. Stress, frustration, and decreased motivation are inevitable.

Here are 5 ways you can deal with startup uncertainty:

1. Stick to a morning routine

There’s many ways to start a morning routine. What’s important is to have a stable, predictable routine. This centers your mind and gives you some order to your day. You manage your business and you can do whatever you want. No boss and no one telling you what to do, it can be mix of productive to outright messy days. By giving yourself some stability, you start the day off in a predictable way so that you can jump into work each day.

It’s as easy as taking your dog to the park, having a cup of coffee, and listening to a motivating audiobook for 20 minutes. You may need meditation to get into the state. Whatever it is that you need to get from a sleepy/hungover mindset to that of taking on the day.

“If you win the morning, you win the day.” – Tim Ferriss

2. Make time for high performance books

Speaking of audiobooks, everyone – especially entrepreneurs, need motivation. Get a few motivating books from other business leaders. This will do incredible things for your mindset and the way you think. Most of them help by keeping you excited for bigger goals. Look for classics from Jim Rohn and Tony Robbins. Or the newer motivational personalities like David Goggins and Rachel Hollis. You’ll be surprised at how much hearing someone’s hardships on their journey will help you on your own.

3. Schedule your week

It’s easy to get a packed calendar working an office job. Everyone else in the company seems to be demanding your time for one meeting or another. Pointless meetings are even the reason some people leave their jobs in the first place. The issue with having your own startup is that while the pointless meetings are gone, so too is any semblance of structure from a filled up calendar.

Spend one evening and fill the upcoming week as much as possible. I recommend Sunday afternoons to think about your goals. Plan big tasks every day throughout the week. That way you always know what you should be working on and stay on track.

4. Hit the gym

This one is actually part of my morning routine and it’s benefits can’t be overstated. Exercise helps fight off anxiety and stress. There’s no better way to funnel your business frustrations more than into the weights. By the time you’re done, your body and mind will be much more relaxed. A necessity when it comes to the tension of being an entrepreneur. Whether that’s staring at your laptop or making sales calls.

“Daily exercise is an insurance policy for future illness.” – Robin Sharma

5. Be grateful

Gratitude was one of the feel good things that I always used to skip whenever it was mentioned. I wanted cold, calculated strategy or tools I could use to build a business as fast as possible. Many brilliant minds in not only self help but also in business, speak about the need for gratitude.

Here’s why it helps me when the business is going through growing pains or everything seems like it is going wrong. I get filled with doubt and uncertainty and gratitude is the quickest way to relief.

Yes, starting your own business is a massive effort, but there is always some job out there. You decided to launch something of your own because you don’t want a baseline existence. You want to grow and build with the freedom someone can only give themselves.

That alone is enough to be grateful. But if you need more, how about that most people are too scared to do what you’re doing. Or that you are taking the time to believe in yourself and live a life of taking chances.

That speaks to your character and self-worth. Much more than the life of quiet misery so many people in the world allow to decide their entire lifestyle. Be grateful you have this opportunity and make the most of it.

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The Best Side Hustle You Can Start Today In Just 15 Minutes

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The best side hustle you can start in 15 minutes is blogging.

It can be writing, making videos or speaking about topics you love through a regular podcast show. All of these acts are a form of blogging.


15 minutes is not long

That’s why blogging is a good choice.

A video that’s less than 15 minutes is easy to make and will work well.

A short piece of writing can be written in under 15 minutes.

A 10-minute audio conversation on one single question will give people heaps of value and detail in one particular area.

Starting is not where the power lies. Doing this side hustle every single day is how you get what you’re really looking for.


Many successful people are doing this

Whether it’s Hollywood actors like Will Smith or writers like Tim Ferriss or musicians like Ariana Grande — everyone is doing it.

Why is everyone doing the side hustle of blogging?

  1. It’s how we connect with each other.
  2. It actually works.
  3. It’s a way to create an audience which can become a business.

I didn’t invent this side hustle

I just tried it for myself and saw how powerful it was.

It got me:

  • New clients for my 9–5
  • A new 4 day a week day job
  • Clients to coach via Skype
  • Features in major publications like CNBC
  • The opportunity to meet amazing human beings like LinkedIn influencer Michael Chapman

The side hustle of blogging gave me meaning for my life

Before this side hustle, I was washed up, uninspired, negative and pissed off with the world.

Spending 15 minutes to start the habit of blogging got me out of my head. It forced me to search all over the internet and find things to talk about. Pretty soon I was spending 2+ hours a night researching personal development and figuring out what I wanted to blog about.

Blogging led me to want to help the homeless, share my very private battle with mental illness, come to grips with my startup failures and share the lessons, and even overcome my fear of public speaking in the process.

Now I have a meaning for my life thanks to the side hustle of blogging. I reckon it can do the same to help you grow and get you to the next level. You can blog about whatever you want and then watch it grow from there.


Why is blogging the best side hustle?

It’s how you be creative.
It’s how you express yourself.
It’s how you grow.
It’s how you attract the right people into your life.

There are many side hustles you could choose. Blogging is one of many. In my opinion and based on my experience, it’s the best. There are so many avenues you can go down.

Attracting what you want in your life has a lot to do with what you’re putting out into the world”

Blogging is a fantastic way to put out more of what’s important to you, into the world. Like a magnet, blogging attracts more of what you put out into your life.


Oh and don’t forget the income

Investing, giving back and making an income are all possible through blogging too. Part of my monthly income comes from blogging.

This allows me to back causes that help those in need, invest in stocks that provide me with a passive income and have money to spend on the occasional treat such as dinner dates and drinks with my co-workers.

That money comes from:

  1. Ghostwriting for other people
  2. Posting on Medium.com
  3. Coaching clients via Skype
  4. Consulting to businesses on how they can create content that aligns with their brand

There aren’t too many side hustles that can do that for you

Seriously, blogging is a game-changer. It’s a habit you can start in 15 minutes and repeat daily without much effort. Choose your poison — writing, video or audio — and then get started.

Do it for around twelve months and then send me an email with what you experience. I already know, having challenged lots of people already to start this side hustle, that it will work. It just requires patience and the habit of doing it daily.

15 minutes to start today.

And then 15 minutes every day for the rest of your life.

Try it.

<<<>>>

If you want to increase your productivity and learn some more valuable life hacks, then join my private mailing list on timdenning.net

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