.png)
Speaker: Jon Richards
Crowdfunding has become a popular way for entrepreneurs to raise funds and validate their product ideas. Jon Richards, with a track record of over $30 million in crowdfunding campaigns, shared valuable insights during a recent presentation. In this article, we'll break down his key points and answers to attendees' questions, providing you with a comprehensive guide on how to successfully crowdfund your new product.
The Importance of Kickstarter
Jon emphasizes that the platform you choose for crowdfunding matters significantly. While there are various platforms available, Kickstarter stands out for several reasons:
Community Involvement: Crowdfunding platforms like Kickstarter create a sense of community and support for your idea, encouraging backers to become part of your project.
Higher Conversion Rate: Jon's experience shows that Kickstarter yields a higher conversion rate compared to launching products on your website. The sense of supporting an idea boosts conversion rates.
Cost-Effective Advertising: Kickstarter provides a cost-effective advertising channel. Jon's campaigns achieved returns of four to five times their ad spend on Kickstarter, surpassing results from their website.
Creating an Effective Campaign Video
Jon shared his formula for creating compelling crowdfunding campaign videos:
Start with a Hook: Capture viewers' attention within the first five seconds, using eye-catching visuals or a captivating story.
Highlight Product Features: Demonstrate your product's unique features and how they solve everyday problems. Avoid assuming that customers will understand; explicitly explain the benefits.
Strong Call to Action: End your video with a compelling call to action, encouraging viewers to become backers.
Incorporate Trust Factors: Include trust-building elements such as previous successful campaigns, customer reviews, and endorsements to instill confidence in your project.
Finding the Right Price Point
Jon suggests that there's a sweet spot in pricing your product for crowdfunding:
Ideal Price Range: Products priced between $102 and $150 tend to perform well on crowdfunding platforms, making it easier to attract backers through Facebook Ads.
Value Proposition: Ensure your product offers features that set it apart from what's available on Amazon or other platforms. Make backers feel they are investing in something unique.
Crowdfunding Service Providers
Jon acknowledges the role of crowdfunding service providers in launching successful campaigns:
Useful Services: Platforms like Jellop and BackerKit have proven beneficial. Jellop helps market crowdfunding campaigns effectively, while BackerKit manages the back end, including email lists for targeted advertising.
Promoting Crowdfunding Campaigns
Crowdfunding isn't a case of "if you build it, they will come." Jon underlines the importance of driving traffic to your campaign:
Facebook Ads: Utilize Facebook ads as the primary source for prospecting. Redirect links can help track visitors on Kickstarter since they don't allow tracking pixels.
Trial and Error: Expect to spend on advertising to bring in traffic; the cost can range from 10% to 20% of your campaign's goal, depending on your product's appeal.
Conclusion
Jon Richards' expertise in crowdfunding is invaluable for aspiring entrepreneurs. Crowdfunding, when done right, can help you validate your product, build a community of supporters, and secure the necessary funds for production. By understanding the importance of platforms like Kickstarter, creating engaging campaign videos, finding the right price point, and using crowdfunding service providers, you can increase your chances of a successful campaign.
Q&A
Q1: How do you choose a crowdfunding platform, and why is Kickstarter your preferred choice?
Jon prefers Kickstarter due to its community-oriented approach, which creates a sense of support and involvement. The platform's higher conversion rates, cost-effective advertising, and the opportunity to attract a community of backers make it his platform of choice.
Q2: Can you share more insights on creating an effective crowdfunding campaign video?
Jon recommends a formula: Start with a hook to grab attention, highlight your product's unique features, provide a strong call to action, and include trust-building elements, like past successes and customer reviews.
Q3: Do you have a ratio for incentive value to product value?
Jon doesn't follow a strict ratio formula. Instead, he focuses on bundling and offering add-ons to increase the average order value. The key is to provide tangible value to backers for their pledges.
Q4: How do you promote crowdfunding campaigns?
Facebook ads are Jon's primary choice for driving traffic to campaigns. Redirect links help track visitors on Kickstarter, and the cost of marketing can vary from 10% to 20% of the campaign's goal, depending on the product's appeal.
Q5: Why do you have a presence on Amazon when most of your sales come from your website?
Jon maintains a presence on Amazon primarily to support customers who prefer to shop on the platform. However, he doesn't actively promote Amazon sales since the website provides a better platform for educating customers about the products.
Comments