Part of my number one tip for creatives in non-creative roles was to use crowdfunding to test out the viability of your big ideas. Today I share a real life case study to show you how crowdfunding works in Australia.
How it works:
Quite simply: have a big idea? Release it into the world (via a crowdfunding site) with a Target – the amount of money you’ll need to realise the project. If people like the idea, they’ll pledge to contribute towards the target.
Most crowdfunding sites are “all or nothing” – if you don’t reach your target, you don’t get any money and anyone who sponsored won’t be charged.
Want to know how to run a successful campaign? Read on.
Crowdfunding sites in Australia:
I used Pozible, other large platforms include Indiegogo and Kickstarter. Indiegogo doesn’t approve projects before they are published whereas Pozible does and will provide feedback to help project creators refine or improve their campaign prior to publishing and has the highest success rate of these platforms (55%). Kickstarter launched in Australia late last year and has a success rate (I assume globally) of around 44%.
Case study: Melbourne Watch Company
It was from chatting with Pierrick Boyer of Le Petit Gateau for the Melbourne in Fashion podcast, that I first heard about Melbourne Watch Company – locally-designed (made overseas) watches that are putting Melbourne on the world map in terms of time pieces.
So I caught up with Sujain Krishnan, director of Melbourne Watch Company, launched last October to find out more about how he is building his company using crowdfunding. What a dude and I thank Sujain in advance for his time!
An ex-IT Consultant, Sujain was a big fan of watches and influential on watch forums like, Watchuseek, which his company now sponsors. I believe that having an engaged community in your niche is a key factor for a successful crowdfunding campaign.
He was making homage watches (i.e. to vintage pilot watches) when he realised that he preferred designing watches to his IT career and decided to make the jump by starting his own company. However making watches is not a cheap process so how could he fund his business and minimise the financial risks?
Yes you guessed it! Crowdfunding! Sujain has launched each of his new styles using crowdfunding and the various platforms available. The “Flinders” was crowdfunded on Indiegogo and the “Hawthorn” on Kickstarter.
I highly recommend taking a look at the projects to get a feel for what a successful project looks like – the copy (writing), quality images, video and rewards for those who sponsor the project.
Sujain has a new crowdfunding campaign that is live NOW:
The newest model and the company’s first for women is the stunning “Portsea” timepiece which even comes in a stunning rose gold option which looks AMAZING when paired with the textured navy blue strap! See it all in the campaign on Kickstarter which runs for the next month.
The campaign for the the “Portsea” timepiece reached its project target of $35,000 in less than 24 hours of it being published. This means that the watch will definitely go into production – a clever way of pre-selling!
There is also a “stretch goal”, if a target of $45,000 is reached, everyone who “pre-bought” a watch during the campaign will receive TWO bands, rather than just one. This is a great enticer for those who have already supported the project to engage again and share the campaign with their own networks. Very clever!
What’s your big idea?
From the worthy to the quirky – a guy in the US has raised $30,000 to make a potato salad – crowdfunding is a great way to see if your idea has leg. Get on it!