Episode #146 with Clay Herbert of Crowdfunding Hacks

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In Episode #146 Ari talks to Clay Herbert of Crowdfunding Hacks, a blog that talks tips and tricks when it comes to crowdfunding. During the interview, Clay details the differences between IndieGoGo and Kickstarter, explains what makes a campaign a boon versus bust and why some products simply don’t work for crowdfunding.

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Time Stamped Show Notes:

  • 30:00 – Introduction of Clay Herbert of  Crowdfunding Hacks
  • 31:22 – Clay explains what he does: Help entrepreneurs fund their dreams using IndieGoGo and Kickstarter
  • 32:34 – The concept of crowdfunding
  • 35:10 – What shouldn’t be crowdfunded
  • 35:35 – There needs to be a tribe of people who will get excited about the product being crowdfunded
  • 35:46 – Is it a portable story that the backer will want to tell their friends about?
  • 36:35 – You won’t get funding just based on the quality of your product: the quality of your marketing and your ability to find people who are willing to get interested are more important
  • 37:55 – The importance of setting the right funding goal
  • 38:12 – One of the biggest myths surrounding crowdfunding is the existence of a “crowd”
  • 38: 35 – Set the funding goal as low as humanly possible to complete the project and deliver on your guarantees
  • 39:00 – Lower goals give confidence for later backers
  • 40:10 – Crowdfunded products are proof of market AND traction
  • 40:35 – The two elements that make or break a crowdfunding campaign?—Traffic and conversion
  • 41:10 – Traffic is rarely the issue, it’s conversion
  • 41:45 – Tell a great story with the video and keep it as short as possible, ideally 2 minutes or less
  • 43:07 – Own a position in your customer’s mind
  • 43:40 – Fundraising and crowdfunding are NOT the same
  • 45:15 – Fulfillment risk
  • 46:00 – Lack of clarity—poor copywriting—is a huge issue with branding and marketing
  • 47:45 – Momentum is big—Use the bartender fishbowl mentality
  • 49:20 – Crowdfunding is the single best marketing laboratory AND it offers research AT-SCALE
  • 51:00 – Kickstarter versus IndieGoGo
  • 52:55 – Bluesmart Suitcase campaign
  • 55:40 – Clay has worked on 120 campaigns and raised over $25 million
  • 55:55 – Crowdfundinghacks.com

7 Key Points:

  1. Carefully examine products and services before considering crowdfunding as a source of investment—some things do not work with crowdfunding.
  2. A short, enticing video is an absolute MUST for the promotion of a crowdfunding campaign.
  3. Make your crowdfunding goals as low as possible.
  4. Find a position within your target consumer’s mind and own it.
  5. Want to demonstrate the potential of your product?—A successfully crowdfunded campaign demonstrates a viable consumer market AND social traction.
  6. Momentum is a huge component of success—Try starting your campaign off with a large donation, even if you have to provide it yourself.
  7. There is no “crowd” in crowdfunding.

Resources Mentioned:

  • Healing Power of Personal Data – A NYTimes article that highlights how personal medical records can improve the body’s ability to heal
  • Married v Single – A Medical Daily article talking about the pros and cons of companionship when it comes to health
  • Enveloupe – Send a PDF by mail
  • AirBNB in Cuba – AirBNB is now up and running in Cuba
  • Leanne Brown – A PDF cookbook that focuses on a $4 per day budget
  • Moni.ai – Basically Siri for the iPhone but it’s role is to perform functions rather than collect information
  • Worry and Work – A WSJ article explaining how moderate pessimism and concern can result in higher productivity
  • That Sugar Film – A new Australian film that studies the dark history of sugar in western culture

Reviews, Comments and Questions:

  • 02:02 – Question – From listener Rebecca – “My question is: I have an iPhone and want to limit the hours in which email can come to my phone and I’m looking for either an app or a mail client or a work-around through I phone, but I do have email based in several different platforms. Do you know of a way to make that happen, to control the inflow of email to my phone? Thank you!”
    • 02:28 – Answer from Felix and Ari