Key Concepts
Kickstarter, crowdfunding, board games, marketing channels, reward tiers, perks, packaging, financial success, community, pre-launch, social media, pledge manager, fulfillment, Hive (platform), BackerKit, Gamefound, competition, coaching.
Introduction
Salvador Brigman introduces the Crowdfunding Demystified podcast, emphasizing its focus on providing behind-the-scenes insights into crowdfunding, particularly on platforms like Kickstarter. He highlights the importance of accessing information, tools, and strategies to successfully launch projects, whether for physical products, board games, music, film, or theater. The podcast aims to provide tactics, strategies, tools, and inspiration.
Guest Introduction and Background
Constantinos, CEO and lead developer of Vuvius Media, is introduced. Vuvius Media has launched over 20 Kickstarter campaigns for board games. Constantinos shares his background in computer science and his initial focus on digital games due to the challenges of physical game production in the past. He explains how Kickstarter provided an opportunity to fund and produce physical board games based on stories developed in their digital games.
Initial Kickstarter Challenges and Lessons Learned
Constantinos recounts his first Kickstarter campaign for Century Saga, which raised $68,000 but resulted in a $40,000 loss. This was due to several factors:
- Molds: Issues with a European printer forced them to switch to a Chinese manufacturer.
- Currency Conversion: Running the campaign in Canadian dollars, which devalued against the USD after the campaign ended, causing a 30% loss.
- Shipping Costs: Underestimated shipping costs due to being "rookies."
He emphasizes the importance of:
- Talking to People: Networking with other creators at conventions and seeking advice.
- Being Prepared: Recognizing the complexity of running a campaign and preparing for potential challenges.
- Doing Homework: Reading blogs, stories, and resources to gain knowledge about crowdfunding.
Quote: "The worst case scenario that can happen is you do have a million dollars in your first campaign and you are not prepared big chance you're going to lose your house in the process."
Factors for Success on Kickstarter
Constantinos states that there is no secret recipe for success. However, he emphasizes the importance of presentation:
- Presentation: High-quality visuals, theme, and artwork are crucial for attracting backers.
- Game Quality: While presentation is key initially, the game must be good to build a sustainable business.
- Pre-Marketing: Building anticipation, gathering feedback, and running pre-campaign ads.
Marketing Channels
Constantinos advises being present on multiple social media platforms, including Facebook and Instagram. He recommends hiring an independent internet marketing agency that allows the creator to control the banners, copy, and budget. He believes the creator should be in charge of the ads, with the agency providing technical expertise.
Structuring Rewards and Perks
Constantinos recommends keeping reward tiers simple, ideally with three options:
- Retail Package: A basic version to show the starting point and what will be available after the campaign.
- Kickstarter Edition: A deluxe version with exclusive content and components.
- Retailer Pledge: A package for retailers to support the game.
He advises against offering too many options, as it can lead to analysis paralysis and prevent backers from taking action.
Quote: "When people cannot decide what they want you're going to probably lose them."
Hive: A Comprehensive Platform for Crowdfunding Creators
Constantinos introduces Hive, a platform designed to address the fragmented nature of crowdfunding tools. Hive aims to provide a unified system for:
- Pre-Campaign: Landing pages, email collection.
- During Campaign: Email marketing, late pledging.
- Post-Campaign: Pledge management, shipping collection, upselling, surveys.
- Fulfillment: Customer support, shipping monitoring, document management.
Hive is designed to be a company-centric platform, allowing creators to manage SKUs, shipping, taxes, and customer support across multiple projects.
Hive vs. BackerKit and Gamefound
Constantinos differentiates Hive from BackerKit and Gamefound, noting that the latter two have become crowdfunding platforms themselves, competing directly with Kickstarter. He emphasizes that Hive is a platform with tools for crowdfunding creators, not a crowdfunding platform itself. He claims that Hive offers superior data management and a company-centric approach compared to other platforms.
Community and Collaboration
Constantinos highlights the importance of community and collaboration among creators. Hive fosters a community where creators can share knowledge, resources, and even consolidate freight shipments to save costs. He emphasizes that Hive does not have financial ties with fulfillment hubs, trade companies, or factories, allowing them to provide unbiased recommendations based on recent experiences.
Final Advice
Constantinos encourages creators to connect with others in the industry and seek advice before launching a campaign. He emphasizes that crowdfunding is a challenging but rewarding journey, and having support can make the process easier and more successful.
Quote: "Find somebody and go at it together."
Salvador's Closing Remarks
Salvador thanks Constantinos for sharing his insights and encourages listeners to take action by exploring the free course at crowdcrux.com/kickstarter or booking a coaching call at crowdcrux.com/coaching. He emphasizes the importance of having a flexible mindset and being receptive to advice.
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