crowdfunding tips, trends & the future (stanford gsb guest lecture, may 2014)

Darren MarbleCo-founder & CEO, FilmBreak

dmarble@filmbreak.com310.710.9920 (cell)

@darrenmarble

May 2nd, 2014

IntroductionCrowdfunding Overview Crowdfunding for EntertainmentEntertainment Crowdfunding Case StudiesTips for Successful Campaigns Industry TrendsThe Future Q&A

Agenda

Bay Area Roots

UCLA

Time Warp

Silicon Beach

Diving In

Professional Services

Professional Services

Samwise & Shovels

Crowdfunding Overview

Crowdfunding is the collection of finance from backers - the “crowd” - to fund an initiative and usually occurs on Internet platforms.

With rewards-based crowdfunding, contributions are exchanged for current or future goods or services.

Kickstarter is the largest rewards-based crowdfunding platform

Kickstarter Stats

Over $1B pledged 60k successfully funded projects6mm unique backers 1.8mm repeat backers 14mm total pledges

However…Most campaigns failAverage raise is < $10k Platforms provide zero support

Success Stories

Value Proposition for Entertainment

Get the WINBuild and carry your audience Generate tons of positive press Retain creative control Raise money

Successful campaigns: Demonstrate consumer interest in your project Mitigate risk for the real investors Help you raise MORE MONEY

Tips for Successful Campaigns

Get 25% of target committed pre-launchIdentify 100 blogs to target for pitching Offer compelling, visual rewards Bigger network = greater credibilityKeep your audience engaged

There is no “free lunch”Aggressive friends and family outreach Facebook messaging is highly effective If you’re asking for money, you’re doing it wrongThe marketing is as important as the money Track your activity

The First 25%

Blog Outreach

Use the 80/20 rule to focus on best targetsAssign to a dedicated resource Evaluate the “4 Rs”

Relevance Readership Relationships Reach

Offer Compelling, Visual Rewards

Finished Product Rewards ExperiencesGiveaways and Keepsakes “Crowdsourcing” and Participation

Price rewards low enough to have fair value, but high enough to cover costs.

$25 rewards are the most common donations.

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Higher Number of Updates Lead to Greater Funding

Success

Retargeting Crowdfunding Agencies “Owned & Operated” Campaigns

Industry Trends

Retargeting

Retargeting is a form of online advertisingthat helps keep your brand in front of bounced traffic after they leave your website.

Retargeting uses JavaScript code to anonymously ‘follow’ your audience all over the Web.

Retargeting helps you reach the 98% of users who don’t convert on the first visit.

Retargeting - Integrated Marketing

Crowdfunding Agencies

FilmBreak's CrowdfundX service helps creators to more effectively plan and execute crowdfunding campaigns.

We partner with our clients by providing campaign management, branding, graphic design, PR and marketing.

Our clients include filmmakers, celebrities, tech startups, for profits, and non-profits.

Sample Scope of Work

Beta + Launch Marketing Planning & StrategyCrowdfunding Planning & StrategyCrowdfunding Page Design & Development Collateral DesignPR & MarketingBacker Communications

Sample Team

Campaign Manager Graphic DesignerHTML/CSS DeveloperPR Expert Blog Outreach ConsultantSocial Media Marketing Consultant

Sample Graphics

Sample Press

Value Prop for “O&O” Campaigns

Creator has complete control Design and brand as desired Add plug-ins with ease Extend your campaign

Own your audience - and data Names and emails Facebook interests Keep your audience in one place

The catch: You’re responsible for 100% of your trafficCosts associated with a custom build

Crowdtilt API

The Future

The industry needs automation An ecosystem of SaaS tools will emergeCrowdfunding will become a prerequisite Crowdfunding will become an enterprise play

The Future

Darren MarbleCo-founder & CEO, FilmBreak

dmarble@filmbreak.com310.710.9920 (cell)

@darrenmarble

May 2nd, 2014