Manifesto (Strategy)

Welcome to The Crowdfunding Manifesto. The purpose of this guide is to educate and inspire you on the strategy of crowdfunding a creative project. We define creativity broadly - to include traditional categories such as music, film, photography, writing, etc - and also fields such as entrepreneurship, some forms of philanthropy, computer programming, sports, etc.

First off, what is crowdfunding? In a nutshell, it is leveraging your network and audience for funds, awareness, and feedback. Crowdfunding is based on the belief that the power of many small contributions in aggregate can become significant. There are a few different variances of crowdfunding - some are purely donation based, others are rewards based. We believe that for the modern Creative - the rewards-based model offers the most sustainable path to funding projects.

Why are we seeing this phenomenon now? For starters, Creatives are more connected to their audience and network than ever before. Modern social networking makes reaching out simple and virtually free, while the costs of creative production and distribution have gone down. Meanwhile, the old-guard institutions of music labels, publishing companies, film studios, etc. are collapsing. A new revolution is emerging on the grassroots level of creativity. Crowdfunding is the foundation of this New Creative Economy.

What does this mean for you as a Creative? The tools for funding and publicizing your projects are available right now. This manifesto is here to help you succeed.

The Crowdfunding Manifesto consists of the three pillars of success:

1. The Project
2. The Network
3. The Rewards

Each is equally yet uniquely important. When each pillar is strong, the probability for success grows.

Every person owes it to him or herself to build something great. Make sure your project matters - and remember it does not need to be big to be important.

To truly make a dent in the universe, you need passion. Build a project that is worthy of your time and other people’s attention. Crowdfunding success comes from emotional connection – both to the project and to the individual/team leading the project. Stand for something and you will be noticed.

When describing your project be sure to describe why it’s important to you. If the why is powerful enough for you, it will likely resonate with others. Be clear on the why.

Make it the best project possible. A compelling project takes both emotional and intellectual effort.

Crowdfunding is based on trust. A Creative’s first-degree network - the family and friends - are usually the first contributors because the necessary trust has been established a long time ago. The second-degree network - the friends-of-friends and other acquaintances - jump in afterwards. They contribute after the right trust signals have been sent - i.e. after enough money is already in the tank, after a robust discussion has emerged, and after intimate communication is in place.

The larger your network and the deeper your relationships, the more power you have. Most small and medium projects can succeed purely from the first and second-degree networks. You likely have enough connections take the first crowdfunding step (See Difficulty Levels).

Large projects need the third-degree to fully fund. The third-degree network - essentially consisting of people who have no personal connection to you - are the most numerous and financially powerful group. Winning their trust - and thus their hard-earned money - requires work. It requires an introductory message that is personal, authentic, and that strikes an emotional chord. It requires regular updates, complete engagement, and full dedication. It is the ultimate sign of trust to give money to a (near) complete stranger. Your previous work and reputation as a Creative play a large part in that trust.

It is difficult to predict how much impact the third-degree network will have. Consider it a “wildcard play” that becomes more likely if you have an exciting project or a large first and second-degree network base.

One of the key elements of a successful modern crowdfunding project is the Rewards Menu. This is a list of goods, services, and experiences that funders receive in exchange for participating in your project.

The rewards serve as the foundation for the exchange – enticing people to contribute at various price points. Having the various price points is key to effectively monetizing your network. The different levels of rewards let all those who wish to be involved participate in your crowdfunding campaign - based on their financial means.

The Rewards Menu should read like a good restaurant menu. Every reward should be fun to read and must contribute to your brand as a Creative. Think of what you can offer beyond the obvious – i.e. if you are a musician that can bake cookies you can tap into your culinary skills to develop original rewards. The rewards give power to your network and offer the opportunity to influence the creative process and end results.