The Digital Marketing Podcast

Episode: A Beginners Guide To Crowdfunding

Release Date: August 26, 2017

Hosts: Ciaran Rogers, Daniel Rowles
Guest: Heather Delaney (Dynamo Communications)

Episode Overview

This episode offers a comprehensive introduction to crowdfunding, specifically geared towards beginners and those curious about leveraging it as a tool in digital marketing and startup fundraising. Crowdfunding expert Heather Delaney joins hosts Ciaran Rogers and Daniel Rowles to discuss the fundamentals, types of crowdfunding, best practices for campaign success, and tips gleaned from her experience running over 100 campaigns. The conversation delves into strategic planning, platform choice, community building, communications, audience targeting, and sustaining momentum beyond a campaign’s close.

Key Discussion Points & Insights

Heather Delaney’s Background & How She Got Involved in Crowdfunding

• Heather worked in PR and communications across US and UK, with clients ranging from startups to major listed companies.
• Her first exposure to crowdfunding came via a client launching on Kickstarter, which “raised 2.3 million for that first campaign” (01:29), catapulting her into the specialist space.
• She now runs Dynamo Communications’ crowdfunding division and has worked on 100+ campaigns.

What is Crowdfunding? (02:43)

• Crowdfunding lets individuals fund a business or project by raising "small amounts of money from a large group of people" online (02:43).
• Types of crowdfunding:
  • Reward-based: Backers get products or perks (Kickstarter, Indiegogo).
  • Equity-based: Backers get equity/shares (Crowdcube, WeFunder).
  • Donation-based: Philanthropic, no tangible return (GoFundMe).

Equity vs. Non-Equity Crowdfunding (03:08)

• Equity crowdfunding is “four or five years behind” reward-based models in maturity due to legal complexities (04:29).
• The focus of this episode is on non-equity (reward-based) crowdfunding.

Uses & Motives for Crowdfunding (05:07)

• Startup capital for businesses, launching products, funding creative arts.
• Increasingly, used by tech and gaming sectors.
• Also a way to “raise brand awareness, test the market, and see if a product is viable” (05:07).

Major Platforms and Growth Statistics (06:06)

• Big names: Kickstarter, Indiegogo, GoFundMe, WeFunder, Crowdcube.
• “Global crowdfunding just within equity is worth about $93 billion by 2020” (06:19).
• Both general and highly specialized/niche platforms exist.

What Makes Crowdfunding Unique in Marketing?

• “It’s very, very transparent… you can see on the back end of the platform where every dollar has come in from.” (07:31)
• Enables precise attribution of funding sources—unlike traditional PR, direct links between media mentions and funding can be seen.

Pre-Launch Essentials for a Successful Campaign (08:50)

• Page & Messaging: The campaign page acts as “a giant messaging document.”
• Video: The “sweet spot is about a minute and a half, two minutes” (09:10). Drop off rises sharply if longer than 3 minutes.
• Pledge Levels: Carefully structure backer tiers with appealing rewards.
• Production & Fulfillment: “Preparation in advance is just essential” (10:22), especially around timelines, shipping costs, and geographic scope.

Geographic Considerations (10:36)

• Platforms can limit shipping by country, but digital products are unrestricted.
• Surprising backer locations can reshape distribution strategy; e.g., “You potentially could have predicted that North America was your biggest sale, but the reality might be Germany” (11:36).

Audience Targeting & Platform Choice (11:52)

• Five years ago, “pure PR did everything, ad spend would have done nothing” but now both are crucial (11:59).
• Use email lists tailored to your audience (“no point targeting my mother for your 3D printer if she has no interest”; 12:48).
• Choose platforms aligned with your product niche and ideal communities (13:10).

Campaign Timeline: How Far in Advance to Plan (14:51)

• “Six to eight weeks in advance is how much time you should prepare for [PR and marketing]” (15:04).
• Ad spend and email marketing “need to be done far in advance,” sometimes up to “six to eight months ahead of time” for significant campaigns (15:48).

Communication with Backers: Building the Community (16:55)

• Crowdfunding is “the first time a regular consumer has access to a founder” (16:55).
• Direct feedback and interaction create investment beyond the financial—backers become brand advocates.
• “It’s not your product, it’s our product, it’s our company” (17:43).

Managing Expectations (19:06)

• “It’s best to under promise and over deliver… As long as you’re open and honest, the community will respect you for it” (19:06–20:02).

Hot Tips for Maximizing Crowdfunding Success (20:09)

• Short, high-quality video (<3 min).
• Careful ad spend and “never just purchase a random list of emails” (20:54).
• Targeted social media and email campaigns.
• Start small with advertising budgets and scale what works (“I am a big fan of starting small, pushing the net out, see what works, and then retargeting”; 21:17).

Real-Time & Post-Campaign Audience Polling & Research (22:16)

• Use campaign updates and post-campaign surveys to ask product questions and gather market intelligence.
• Collect demographic and location data—valuable for future product development, investment, and distribution (22:26–23:23).

Sustaining Momentum Post-Campaign (23:58)

• Transition your community to your own website/social channels before campaign ends.
• “A week before your campaign ends, you want to start naturally moving people over” (24:28).
• Set up e-commerce or pre-order options for latecomers.

Budget Realities: Do You Need Huge Resources? (25:53)

• “There’s definitely room for anybody. One thing to remember is that in crowdfunding… the majority… are only looking for about $10,000 and then they’re completely successful” (26:15).
• PR and ad spend together offer best results but you can “start small and still be very successful” (26:55).

Crowdfunding Trends & The Future (27:31)

• More corporates using crowdfunding to “test a market to see if customers are willing to spend money” (27:35).
• Increasing specialization in platforms for niches from “pure startups” to “student loans” — even “breast enhancements” (28:30).

Notable Quotes

• Heather Delaney:

  “If you have never launched a crowdfunding campaign yourself, then it’s almost impossible to be successful.” (01:57)

• Heather Delaney:

  “The more campaigns that you work on, the more you learn. Every campaign is completely different…” (01:59)

• Heather Delaney:

  “Crowdfunding is the longest 30 days of your life. And if you can prepare as much in advance as possible, future you would be very, very happy.” (15:33)

• Heather Delaney:

  “It’s not your product, it’s our product, it’s our company. And as a founder, it’s essential to have that direct line of communication.” (17:43)

• Heather Delaney:

  “Start small, push the net out, see what works, and then retarget.” (21:17)

• Heather Delaney:

  “There’s definitely room for anybody.… the majority… are only looking for about $10,000 and then they’re completely successful.” (26:15)

Timestamps for Key Segments

• Introduction & Heather’s Background — 00:00–03:08
• Crowdfunding Basics/Types — 03:08–05:07
• Main Platforms & Market Size — 06:06–07:31
• Unique Aspects & Metrics — 07:31–08:50
• Pre-Launch Preparation — 08:50–11:52
• Audience Targeting & Platform Selection — 11:52–14:51
• Campaign Timeline Planning — 14:51–16:35
• Backer Communication & Community Building — 16:35–19:06
• Maximizing Campaign Success — 20:09–22:16
• Polling Backers & Post-Campaign Research — 22:16–23:58
• Transitioning Post-Campaign/Keeping Momentum — 23:58–25:53
• Budget Realities — 25:53–26:55
• Crowdfunding Future Trends — 27:31–28:30

Memorable Moments

• Heather recounting the thrill and overwhelm of her first $2.3 million Kickstarter campaign (01:36).
• The analogy of participants becoming not just backers, but co-creators, and how “people are fiercely protective of their crowdfunding products” (18:26).
• The practical “start moving people over” to your own channels before campaign end (24:28).
• Ciaran’s amusement at niche platforms such as crowdfunding for breast enhancements:

  “Well, if you can fund breast enhancements through crowdfunding, I guess the door’s wide open for all sorts of creative uses…” (28:30).

Conclusion

This episode is a must-listen for anyone curious about starting a crowdfunding campaign or integrating crowdfunding into their broader marketing strategy. Heather Delaney’s insights demystify the process, highlighting both strategic preparation and the community-driven mechanisms at its heart. The advice is actionable, honest, and peppered with memorable analogies and real-world examples, making it relevant for entrepreneurs, marketers, and digital strategists alike.

For more information or to contact Heather Delaney:

• Twitter: @evertinglife
• Website: DynamoPR.com