The Key to Crowd funding: Part Three
Most entrepreneurs look to crowd funding sites like Kickstarter to try to fund their dreams. However, most don't realize the work it takes to actually lead a successful campaign. These folks believe that if they come up with a cool idea and post it online that people will automatically gravitate to it.
Crowdfunding campaigns are a lot of work, though. With the increasing competition on crowd funding sites the amount of effort a project creator must put in to succeed is constantly increasing. Therefore, we're going to post what we have learned from launching our successful crowd funding campaign for Cul-De-Sac Conquest, which raised over $20,000.
This three part series will include pre, during and post-Kickstarter information.
If you have yet to read what to do pre-Kickstarter a link to the article is here.
If you have yet to read what to do during-Kickstarter a link to the article is here
Now is what you've all been waiting for. You've started a campaign and funded it. You're going to be excited for about 24 hours, then you will get the feeling in the pit of your stomach that says "Hopefully we can actually do this. Hopefully we don't hit too many production delays. Hopefully we don't disappoint our backers."
When will we get our money?
So you've funded you're just going to get the money immediately, right?
Nope, it takes a minimum of two weeks for payment processing. Boo! If you're like most first time creators that one is going to jump out at you.
Account for this in your production schedule (discussed more below). If your company requires the money to get started these two weeks will be relatively dormant.
How much money will you actually get?
Then once you get the money you'll get the amount you raised minus Kickstarter fees, right? Wrong. You'll also have dropped pledges if a backer's card could not be charged and payment processing fees.
Here is what that looked like for Cul-De-Sac:
If you have a physical product that you seek to retail you'll need a barcode. People often forget about barcodes and don't know what they will cost. Barcodes can only legally be bought through gs1.org and will cost a minimum of ~$250 with an annual fee of ~$50 assuming you only have 10 or less product lines. However, if you have clothing line each color and style change requires a separate barcode, which can add up fast.
However, if your company only plans to sell on Amazon or other online retailers it is possible to buy barcodes from third-parties that essentially license their gs1 codes though physical retailers will not allow this. If your company does not plan to retail the product research this topic further to see if you need to spend the money or not.
Most first-time Kickstarter projects deliver late. Over estimate your production time as in most cases you'll run into a million and one hurdles whether it is on your end or a third-party it will only look bad upon you as the project creator. Add a good deal of time for unexpected delays and production problems, especially if the project has not been completed before the Kickstarter is started.
You should have a solid idea of manufacturing, shipping and logistics before the campaign. However, now you're going to have to deal with these manufacturers and work on shipping and fulfilling orders. Keep in constant contact, and stay up-to-date on the timeline of your project to inform your backers of when rewards should be shipping.
We're still in the process of delivering Cul-De-Sac Conquest. The files should be sent to the manufacturing next week and then we have about 45-48 days until the game is finalized and sent to the fulfillment company that will send the game to Kickstarter backers. Therefore we're in no position to talk about fulfillment, yet. However, in the next few months we all likely be posting more information in addition to this about how to get a Kickstarter product to market.