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May 28, 2014

62: Everything You Always Wanted to Know About Crowdfund Marketing

62: Everything You Always Wanted to Know About Crowdfund Marketing

Neal interviews crowdfund marketing expert Peter Trapasso at Cisco Live and gets to the gist of how to use crowdfunding as a marketing vehicle.

 

Transcript

spk_0:   0:04
welcome to maximize your social actionable 10 minute advice on how your business can maximize your social media presence. Now the host of Maximize Your Social Social Media author, speaker, consultant and founder of Maximized Social Business Neal Schaefer Everybody, this is meal shaper and welcome to another exciting episode of Maximize Your Social. I am actually here if you've been following On Social, been invited as an influencer to attend Sisqo Live this year, it's at the Moscone Center in San Francisco and Amazing Event, with 25,000 physical attendees, 200,000 online attendees and really a showcase in best practices for event marketing that I look forward to blogging about very, very soon. But the people that I've met here have been amazing, not just the intend ease, but obviously there's a group of influences. Your I'd say They're about 25 of us, and we've had sort of a behind the scenes look. And what is a gentleman that if you've been involved in social, you probably know I've known the name. We've engaged in social, never met, and when we started talking like you know, he has some pretty important not that's really important information for everybody. An interesting perspective in an interesting niche that probably a lot of people listen to the pockets that they knew existed would be really, really interested in it. So without further ado, let me introduce you to today's guest, Peter Apostle. Peter says Hi.

spk_1:   1:22
Hi, Neal, How you doing today?

spk_0:   1:24
I'm doing awesome, Peter in one sentence. How would you describe your role in the world of social media

spk_1:   1:31
right now? I'm focused on helping crowdfunding campaigns Kickstarter, for you heard of that one? Get a little bit of extra kick in their promotion as faras, the marketing side of things go

spk_0:   1:43
pun intended. You know, it's a Cisco van, so it's very tech, Korean and a little bit low key, and we'll try toe a little bit more excitement here. But yes, it's about kicking. It's funny because I went to an author marketing conference about a year and 1/2 ago. I was telling this to Peter. It was the first time where they were talking about all the different marketing channels out there, and they brought a Kickstarter, or crowd funding as a marketing channel, not as a way to raise money but as a way to help spread the word to a unit community about your product. And I was really excited here that Peter actually does this for a living, and it's helped. A lot of companies and people do that, and I think it's very relevant for the listeners. This podcast. So, Peter, what types of businesses, what types of people, What types of products would be best appropriate for Kickstarter campaigns? Or is it really relevant for any business?

spk_1:   2:25
I'm glad. Yes, said. I think it's actually segment of businesses that tend to succeed. And Kickstarter would be those that have things like technology, including APS. Sometimes it might be companies that are making handcrafted goods so leather goods belts while it's things you might find on at sea but could be scaled up.

spk_0:   2:47
Okay, so abso something you can get into a Google play store and iTune store as well as things you can get into etc. Would be the two sort of verticals that you see most most successful.

spk_1:   2:57
Yeah, those little ones that I tend to see winning versus those that kind of start and then maybe have a fanfare. But you know, Peter out and don't really get to the finish line of funding.

spk_0:   3:08
So it's not just about the product concept, the product design, the product idea. It's about what it's gonna be the distribution channel if you're successful in making that link up front. If you don't have that link, it's gonna be really challenging. Is that basically your perspective?

spk_1:   3:21
Oh, definitely. And one thing that I've noticed is the ones that connect best ones that get get the funds and get the brand out there. Our campaigns that really touch the heart of the person that's paying attention. And then I've noticed once the heart's been touched, then while it seems to open up and you know the funding happens rather otherwise, if you can't reach out and touch somebody in that way, you have thio really? Maybe try a different venue.

spk_0:   3:49
Awesome. So I've never done crowds on marketing before. If that's a term I should use, I don't know. But I just made it up. Why should I? Let's say my business falls into one of those two categories, and I guess if you're an author and you could put a book together, a snap or a podcast together is an app, which a lot of people are doing. It falls in on those two verticals. What are the advantages of me utilizing Crowdfund marketing as part of my entire marketing? You know, program,

spk_1:   4:14
That's That's another excellent question. There's a crowdfunding campaign that I actually became a backer of the got their funding very recently, as in the past week, and I actually found them through post. They did on Copy Blogger, where they describe their experience with Kickstarter and crowdfunding, and the way they went about it is, I think, a textbook example that anyone should look at if they want to get involved,

spk_0:   4:37
tell us the steps were listening.

spk_1:   4:39
Okay, so they did a lot of pre work. So before launching, you're in a thing called free lunch, and you need to do your planning. You need to put together your tribe, and that would be friends, family people that would be very interested in what you're trying to raise money for, so you need to do that first and the same time you need to start building your social presence. Typically, you start with accounts that air just focused on this crowdfunding campaign from zero and build him up. And once you have them thio good level, then you're getting closer to actually launching and making the campaign public on Kickstarter or Indiegogo.

spk_0:   5:16
All great advice. So, you know, built up a tribe of physical trapped as well as a virtual tribe. What is sort of best practices in up scene crowdfunding campaign social where they're just blasting. Hey, you know, give us money or they're savvy enough to do like a Twitter search. They know I'm talking about something with a key word and then let's say Oh, if you're interested in that, you may you may wanna, you know, investor Kickstarter or they'll follow me on Twitter. I followed back the semi automated D M Hey, check out my kick starter and I'm assuming none of these are best practices that you'd recommend, obviously. But what would be, you know, give us one or two best practices as to companies that are looking to utilize Kickstarter and they're starting social media accounts from scratch for the campaign off, how they can do it in a river authentic and transparent and genuine way while still meeting their Kickstarter goals.

spk_1:   6:00
Sure, one thing that I found is that you should lead with what your big idea is not. Please donate. I mean, it's getting pretty saturated out there as faras all these different campaigns and you mentioned people are kind of getting a little bit numb to all these requests. So if you think about it more as a startup and a product lead with big idea What what are you trying to do? What trying to sell, then if it connects with people than funding will come. And on top of that, you also want to leverage not just your core supporters, your tribe, as I called it, but also wanna have them become people that can spread the word to those that they know that might be interested in helping us. Well, so you amplify the effect from maybe 300 people. You start out with two thousands

spk_0:   6:49
very interesting. So comparing crowdfund to social media marketing or email marketing. What do you see as the benefits and disadvantages comparing? And I understand that obviously, if you crowd funny, utilizing me on soldier was part of that. But what do you see as the advantages and disadvantages? In other words, I have a budget. I don't know if I'm gonna use it on email or social or a crowd fund campaign. What would you do to convince me that the advantages of using that money and crowdfunding far outweigh the advantages of those other mediums or other channels?

spk_1:   7:20
Well, one thing is is it's red hot. I mean crowd funding your about it a lot right now, so that kind of helps your cause as long as you present it appropriate. So I would leverage and ride the wave as it's coming out there. But is faras analytics. They're not very well developed as far as tracking beyond that bottom line of how much have you raised and how many days you have left in your campaign, There's not a lot out there. Where's with email and social. It's Maur developed, and you have a lot more quantitative measures you can use. So you keep that in mind again. Consider things beyond just the bottom line for what are you trying to achieve at the outset? One just to raise money? Do you want also get your brand out there and it's It applies best to even established companies. If this isn't the first thing you've ever launched the first product. First service. I've seen established companies with plenty of money doing crowdfunding campaigns because they realize the marketing benefits. It's not just about reason

spk_0:   8:24
what are sort of the user basis. So if you look at you know the numbers, Facebook one billion users, you know, Big Gin, 300 million, Twitter, 400 million and Google Plus would have your Pinterest instagram. What would you estimate to be the user base of people? And I guess we could say like a Kickstarter because you do have a user profile and you can't connect with others. But I guess we could consider it a social network, right? What would you say? Sort of the volume in terms of users or participation in those communities that are focused on crowdfunding.

spk_1:   8:48
I could probably give you a dollar amount of the total industry, I think between 2012 and 2013 it doubled in size. I think it went from something like two and 1/2 1,000,000,000 to $5 billion total size of all campaigns. Not sure if that's the ones that were funded or just the ones that work launched, but I'm assuming those dollars were actual dollars raised. Soas faras The number of people there's there has to be thousands. Kickstarter Farming away is the largest, right? I would say maybe they're even 50% of market, followed by Indiegogo on a bunch of other ones

spk_0:   9:24
in terms of the campaigns that you've worked on her scene in terms of number of users that, like, donated any feeling for some of the big ones that you've seen.

spk_1:   9:32
Yeah, I think if you get in the hundreds of backers or funders, you are big time. You get to that level than you made a dent, and you have to assume that everyone's given at least a dollar.

spk_0:   9:46
So, I mean, if you look at it that way and if you have an email list of 10,000 and you get a 30% open raid and you get a 3% click rate and how many of those actually convert is probably less than 1% If you get 100 people converting for whatever amount it is, or whatever called actually have on Kickstarter, you're actually when you when you look at the email marketing equipment, it's actually pretty impressive when you talk about 100 or 200 people that actually signed up in donate money.

spk_1:   10:10
Yes, I think so. And again, part of part of its the novelty. But also it's an effective use of social media as faras getting the word out and also leveraging email marketing. So these things that already exist, you're just repurpose ing them for a new campaign.

spk_0:   10:27
Awesome. Really awesome information. Peter. Anything else you'd like to add for companies that are considering, you know, anything that we didn't talk about, that you think they should know? Visa VI, Crowdfund marketing and our social media

spk_1:   10:36
Sure, definitely do your homework, and I can't stress that enough. I've seen enough campaigns that maybe started strong and just did make to the finish line. Or, you know, surprised us, but less and less till I see ones that surprised me and make it all the way through. So the ones that do best are the ones that have certain elements. One thing's called an explainer video, so make sure your explainer video is strong and clear and looks very professional as well. Leverage here your landing page. So whether on Kickstarter Indiegogo or what have you make sure your landing page is completely filled out and definitely look at other ones that have one, ones that have made their funding and reach out and talk to them both within the area that you're product service falls into. And also ones that just seemed to have done really well. People tend to be very friendly, and I think to be more than happy to help.

spk_0:   11:26
That's awesome. So, Peter, I mean, of as you can hear, Peter's obviously a very intelligent, yet articulate, transparent, really good guy. He also comes from the tech industry like me. In fact, he was at some Microsystems, and I work for a job, a company as well. So we're having a fun time talking about, you know, the tech industry. But, Peter, how can people obviously, if if you have any question about any of this content about Crowdfund Morgan, Peter is is the person that you need to contact the Peter. How can people find you online and on social?

spk_1:   11:52
Yeah, The easiest thing to remember is just Peter Trip ass. Oh, that's my account across Facebook, Twitter, instagram, LinkedIn. You name it as well as my website. Peter Tre Paso dot com. You can easily contact me that way as well.

spk_0:   12:05
Awesome. Thanks a lot, Peter. Appreciate your being on the show. And wherever you are on the world today, listening this podcast make sure that you make it a great and social day. We'll talk next week. Hopefully, next week we'll have some more interviews from some of the great people meeting here at Cisco. Live by Ready Thanks for listening to maximize your social. We appreciate your iTunes subscriptions, ratings and comments. If you would like to appear on the show or recommend content, please contact Neil Schaffer at Neil at Maximize Your social dot com. Make it a social day.