Crowdfunding Secrets Indiegogo and Kickstarter May not Divulge

By Michelle McIntyre

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I recently met an entrepreneur named Kitae Kwon who had raised $84,000 three years ago on Kickstarter for his unique docking station called Landing Zone.

This is pretty amazing considering the average amount raised is around $5,000.

There are some other exceptions.

Scanadu, maker of the super cool Scandadu Scout personal health monitoring device, raised more than $1.6 million using Indiegogo.

If you are not that familiar with the concept, here is the definition:
Crowd funding or crowdfunding (alternately crowd financing, equity crowdfunding, or hyper funding) describes the collective effort of individuals who network and pool their resources, usually via the Internet, to support efforts initiated by other people or organizations. Crowd funding is used in support of a wide variety of activities, including disaster relief, citizen journalism, support of artists by fans, political campaigns, startup company funding, movie or free software development, and scientific research. (Source: Mashable.com)

From a technology perspective, usually people who sign up to use the crowdfunding services of say a Kickstarter or Indiegogo ask for monetary donations, not for equity in the company, and in return, send donors a gift. It’s usually their product.

It’s nice because it forces the founder to get his or her marketing act together. This could mean getting professional photos and videos made or simply writing sales messages.

It could also mean a slew of new customers, if the donor gift is in fact the product.

The third benefit is that it’s organized way for friends, families and of course, new contacts to donate to your company.

Crowdfunding typically works better for B2C products by the way. B2B’s should probably just tap angel investor friends directly for funds.
There are some downsides though. Kitae Kwon says watch out for people who make your product look bad by posting terrible reviews which can often be fake. For example, someone posts a negative review before actually receiving the product.

Kwon said they probably come from competitors or random people who just like to write bad reviews.

He added that you have to be strong and confident when crowdfunding. If it doesn’t go as planned, your company could still be successful. Sometimes the campaign was just not planned or executed well.

Additionally, said Kwon, you could have a successful crowdfunding campaign but the product fails.

The net is, says Kwon, don’t let the campaign define your startup’s future.

However, Kwon adds, there are many crowdfunding benefits. For example, when people donate to get your product as a gift, it shows a bigger prospective investor, like a venture capitalist it is in demand.

Since he raised $84,000 for his docking station for the Apple Macbook Air, which is 10 times the average amount raised, Kwon must have had a huge demand.

For more unique crowdfunding examples, check out this story on the website Hooked on Social Networking. For information about Kwon’s company Landing Zone, visit: http://landingzone.net/
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Michelle McIntyre is the president of MMC high tech PR, on the TEDxSanJoseCA executive team, and director of marketing communications for SVIABC. Follow her on Twitter at @FromMichelle  [Photo credit: iStockPhoto.com.]

 

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A Shocking Statistic about Millennials and Digital Shopping

By Michelle McIntyre

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In recent months, business partners and clients have been using the term “Millennials” a lot.

Millennials, also called Generation Y, are young adults who are now around 18 to 34 years old.  They are social. They are mobile. They are a target for those marketing to a group with uber online buying power.

I’ve been wondering why this group of consumers has become so important so I did some research and found one fact that shocked me.

“Hooked on Social Networking” Blogger and mom to two young Millennials, Holly Nielsen said that some have more buying power because they are living at home with their parents longer and therefore have more disposable income because they are not paying rent.

On the other hand, Nielsen says, some have less extra money because they are paying off their student loans. She added that Millennials grew up with social networking and smartphones so they are totally comfortable on-line.

The Chief Marketing Officer Council just published some facts and figures about this category in a story introducing a new initiative called “Turning Social Feeds into Business Leads.”

The description of the program on the council’s website uses the automotive industry as an example.

It says that Millennials are a lucrative target for automobile manufacturers because they make up 40 percent of the total available car buying population, contributing $200 billion to the U.S. economy annually.

It adds that there’s been a massive acceleration of social media usage, with 70 percent of consumers using social media to learn about other customer experiences when making car-buying decisions. Visit this link for more details about this CMO Council initiative.

Lastly, a recent eMarketer story discusses Millennial online buying trends including one that surprised me.

It said that male Millennials were more into mobile shopping than their female counterparts.

I used to think that women beat men in all areas of shopping but it’s just not so.

The report discussed a January 2013 survey of U.S. Internet users and uncovered these facts about male Millennials:

  • They currently earn more* than, and are happier at work, than their female counterparts. 
  • 43% said they typically shop on auction sites, while only 31% of females gave this response
  • 40% said that in a perfect world they would buy everything online while only 33% female said this
  • 24% typically shop and buy using their mobile devices while only 19% of females said they do so

This definitely shows that young men are a hot target for digital marketers.

Feel free to follow the Twitter feeds of people and organizations mentioned in this story including @CMO_Council, @eMarketer, @HollyNielsen, @FromMichelle. 

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*One part of this is not so surprising. Men have always earned more than women for the same jobs. The ratio is 77 cents to the dollar so that wasn’t overly shocking. By the way, this is unfair and it needs to change.