Is Crowdfunding For Quad State Businesses and Nonprofits?

Taking On or Joining With The Crowdfunding Movement

At first I thought this was akin to Angel Investing only for nonprofits. But crowdfunding is for everyone--really. The Quad State Business Journal had an article in 2013 about a Washington,DC restaurant who was in the thick of raising money for local nonprofits--and selling hamburgers at the same time.

Crowdfunding websites offer average people to give money (not invest) to average folks for just about anything your head can imagine--from the proverbial ridiculous to the sublime. There have been small companies looking to raise cash for a new product to a nonprofit looking for a new animal shelter to a guy asking others to fund his vacation (yes, he was successful).

We are only taking on the crowdfunding for nonprofits idea briefly for now.

I have not followed up on the restaurant, but it seems crowdfunding is getting more mainstream every day.  I do wish I had the crowdfunding sites around when I had my nonprofit on elder financial abuse. But alas, the financial legislation had not been set in play at that time.

We are talking about a lot of crowdfunding sites to take advantage of, too. I have listed a few of them at the end of the article but it would be easier to research on your own as to quantity. There are very generous people out there who want to see a small company or idea take root.

Why So Many  Crowdfunding Websites? Piece of the Action, Baby!

This is an entrepreneurial venture and there are entrepreneurs behind each site idea. As of the end of 2012 there were right at 450 crowd platforms usually manifested as websites. The idea of the crowdfunding website is that you package your idea, your product or service story or whatever into an outline meeting the terms of the website.

There are literally tens of millions of dollars being raised through crowdfunding sources. Word is that just with Kickstarter, it alone has been responsible for over $1 billion raised since its inception.

The websites usually allow the person to flesh out their idea and put it on the site free of charge. A 'fully funded' goal is set on your project and your end result will be in two directions: fully funded or not fully funded. The site owner then takes, say 9 percent or some such figure--give or take--from the funds that you have raised for their services.

Depending on the kind of reward that the backers agree to receive upon giving money, one can distinguish between at least three types of Crowdfunding. -1- Donation-based Crowdfunding, in which the backers essentially donate money to support a cause. Sometimes he/she may receive in exchange a "thank you", a special mention, or even a gadget, but in any case the pledge is essentially a gratuity. -2- Reward-based Crowdfunding, in which the backer receives a reward with a clear monetary value in exchange of the pledge. The reward is often a product or a pre-series item that the backer helped producing by pledging money. In this case the money pledged is similar to paying for a pre-order of a product or service. -3- Credit-based Crowdfunding (more commonly called Peer-to-peer lending or "Crowd-lending"), in which the backer lends the money and receives an interest rate in exchange. In this case the money is pledged in the form of a credit loan. -4- Equity-based Crowdfunding, in which the backer receives shares of a company in exchange of the money pledged. In this case the money is pledged in the form of risk capital.

The 'Crowd' In Crowdfunding Can Be Any Type of Group .

The inputs of the individuals in the crowd trigger the crowdfunding process and influence the ultimate value of the offerings or outcomes of the process. Each individual acts as an agent of the offering, selecting and promoting the projects in which they believe. They will sometimes play a donor role oriented towards providing help on social projects. In some cases they will become shareholders and contribute to the development and growth of the offering. Each individual disseminates information about projects they support in their online communities, generating further support (promoters).

Intellectual Property Exposure--Inventor Beware!

One of the challenges of posting new ideas on crowdfunding sites is there may be little or no intellectual property protection provided by the sites themselves. Once an idea is posted, it can be copied. As Slava Rubin, founder of IndieGoGo said: “We get asked that all the time, ‘How do you protect me from someone stealing my idea?’ We’re not liable for any of that stuff.” Inventor advocates, such as Simon Brown, founder of the UK-based United Innovation Association, counsel that ideas can be protected on crowdfunding sites through early filing of patent applications, use of copyright and trademark protection as well as a new form of idea protection supported by the World Intellectual Property Organization called Creative Barcode.

Where Does Crowdfunding Go From Here?

Crowdfunding exists in just about any democratic country--yes, even Great Britain. Each country puts their own rules and regs on crowdfunding but, again, does not limited citizen participation for the most part.

If you have done crowdfunding for your organization (nonprofit) or company--or even a dream vacation--let us know! We are looking forward to seeing the potential in our Quad State region grow and flourish.

If you would like to create a crowdfunding campaign with one of the sites below, you are invited to make it public record through the Quad State Business Journal--as much info as you want anyway. We would like to see if we can launch or have started five crowdfunding groups in our four-state area to build commerce. If this gives you an idea, shoot me an e-mail!

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Sample crowdfunding resources:

www.Indiegogo.com; www.Equitynet.com; www.Gofundme.com; www.Kickstarter.com 

Marketing to Customers: What's Working Now in E-Mail Subject Lines; The Top 10

The Job Of E-Mail Subject Lines is To, Well, Get Your Message Read, Isn't It?

Is This Your Current Top 10, Too? (With a nod to Dave Letterman's Retirement)
By Steve Lanning

Having spent the better part of my working life with direct mail, I've got to confess that I'm still working to get the hang of digital marketing. People have told me, hey, you did OK in direct mail marketing, this is the same thing only electronic.

I suppose it is, but...

Like many in the Quad State business arena, I am glad I have access to some great marketing people when I need to tap into the thinking of others. And we all should have an 'iron sharpens iron' attitude, yes?

We have compiled a list of subject lines that you may have seen in your In Box recently. See how many of these you can use in your business. Remember, everyone's business audience values things a little differently--even a competitor's audience may.

1.  BREAKING NEWS

This is really an attention grabber when you have a special occasion, a special sale a once-only event that you need to get noticed. All of the subject lines listed here have enjoyed right around a 7% to 10% open rate from an in-house list. They are listed in the way they should look in your customer's Inbox. For instance, 'breaking news' should be written in bold, all caps. The promise is that the reader will indeed find something new if they open it up.

2. Facebook Traffic Is Dead...

This was for an information product that was sold in a variety of ways with an autoresponder series. (Note: all these lines are to be used in an autoresponder series of some type.) The ellipsis after the headline invites the reader to ask why--especially if they are or are planning a Facebook campaign. This is different than the native ads that show up in the darnedest of places once you have shown an intereTst. This is looking for a direct sell from a website. Not to create leads.

3.  Everybody's Waiting For You...

This really works on me--on a webinar that I signed up for but it conflicts with what I'm currently doing. This subject line really puts the reader who never likes to inconvenience anyone on a great guilt trip. "You signed up for this and now you are keeping your fellow attendees waiting until you show up? How rude."  Yeah, right. You KNOW you are not keeping everyone waiting but , gee whiz, I don't want people to think ill of me. Ha! This would probably work even better in a Google Circle event where the audience is only around a dozen or less.

4. Kindle Bestseller in 4 Days?

This appeals to the writer in all of us. We know Amazon's Kindle to be 'the' publishing powerhouse so this will get us to look at information product type offers. The type of subject line works best for an information product. Many Quad State business owners could develop one, two or several additional revenue streams by developing and selling a 'teaching' type of information product.

5.  How Are You Making These Mistakes in Your Business?

Developing a pitch for a professional service aimed at small business owners is a tough nut to crack as most business owners have been around the proverbial block a few times themselves. I have used this line as a heading in a direct mail letter with go a od success in years past. Naturally, the thrust of this subject line is to get the reader thinking "Yes, I may be under selling my business potential. I'd better click on this to see what this person is saying..."

6.  Facebook Closing Down?

Now you KNOW Facebook isn't closing down, but inwardly you are thinking that maybe something happened to Facebook and you have to see what it is. It kind of hits the same nerve as BREAKING NEWS above. This got a huge 8% open rate for a lead generation product. Having subject lines boarding on the preposterous is a two-edged sword however.  The same 'blade' that can cut through an audience's attention span can also backfire and cut the response with the other side. The tie-in copy must flow from the opening line. NEVER 'fool' an audience. The 'just kidding' type e-mail subject lines get you into more trouble than they are ever worth.

7.  Need My Help?

This is mostly for the singleton marketing their services. It is a solid qualifier for many types of services: legal, accounting, consulting and so forth. The body of the e-mail usually contains a testimonial or two o f happy customers along with how a problem was sold. The big connection between problems and services should not go unnoticed. "Have you ever known someone with a wet basement with that damp, dark musky smell? Well, we fix basements like new so that you can invite friends over with confidence. Recently..." And then the copy goes on to tell a success story.

8.  Will This Kill Your Business In 2014?

This is taking a news event or some development in your industry and explaining the problem, the solution and how your product or service will help the reader's business do great things in 2014 rather than close. This is a good subject line because the reader's curiosity gets the best of them and they click to open.  Good for products, services, webinars, seminars or one-to-one meetings, people have a great fear (as in Maslow's Fear, Need, Greed hierarchy) to 'watch over their business with all diligence' to commandeer a biblical quote. 

9.  Questions Answered About Our....

Fill in the word after 'our.' This is for your in-house list that you have been cultivating over time.  You have just come up with a new product or service--or there is a seasonal offer. These are people who have followed your  business perhaps for years. The body copy would consist of something like, "Spring is here with a vengeance and you are itching to get out into the yard. If you had questions about our landscaping course here at Sam's Nursery and Garden Center, Dave Thomas, the terrific instructor we had last year is available to take your lawn and garden questions right now. Give Dave a call at..." This is not a prospecting headline but is most effectively used as a continuing customer gambit. Of course it can work with prospects, too.

10. This Single 'Weird Trick' Is What Is Helping (target audience) to (problem solved)

You have seen this in so many variations over the last few weeks and months. The phrase 'weird trick' is what many different kinds of businesses have found useful in getting attention in their subject lines.  Inquiring minds always want to know a weird trick!

 

An Amazing Array of Outsourcing Pros are Ready to Help You--at up to 90% Discounted Rates!

Whether it is creating a new logo for a new division or you want to freshen your own one, get some great advice from a long-in-the-tooth business coach, develop new marketing strategies and have them implemented for you--we have a great resource for you.

The Business Solution Network (www.TheBusinessSolutionNetwork.com) has a plethora of pros with guaranteed services--direct marketing included--are yours on the site.

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Further research on Quad State outsourcing: www.TheBusinessSolutionNetwork.com 

 

First published: www.QuadStateBusinessJournal.com