EP #520 Killer Tips to Raise Over $4M From 8,500 Backers With Crowdfunding | BionicGym

Key Concepts

• Crowdfunding campaign strategy
• Indiegogo algorithm and platform dynamics
• PR and media outreach for crowdfunding
• Electrical stimulation technology (Bionic Gym)
• Backer relationship management
• Importance of preparation and planning
• Transitioning from medicine to entrepreneurship

Main Topics and Key Points

Introduction

• Salvador Brickman introduces the Crowdfunding Demystified podcast, focusing on dissecting successful crowdfunding campaigns.
• The podcast aims to provide actionable insights for launching and succeeding with crowdfunding campaigns on platforms like Kickstarter and Indiegogo.
• The episode features Lewis, a former medical doctor who raised over $4 million on Indiegogo for his Bionic Gym product.

Guest Introduction: Lewis and Bionic Gym

• Lewis, a medical doctor turned entrepreneur, shares his background and motivation for transitioning into product development.
• He discusses his invention, Bionic Gym, a weight loss device using electrical stimulation to mimic shivering and burn calories.
• Bionic Gym raised over $4 million from more than 8,500 backers on Indiegogo.

Bionic Gym: The Idea and Technology

• Lewis explains the science behind Bionic Gym, which uses electrical stimulation to trigger nerves and induce muscle contractions.
• The device mimics the body's natural shivering response to burn calories, even at rest.
• The epiphany for Bionic Gym came when Lewis observed the optimal frequency for calorie burn during shivering (7-8 Hz).
• Bionic Gym can be used as an alternative or supplement to traditional cardio exercise, even for individuals with limited mobility.

Choosing Indiegogo

• Lewis chose Indiegogo over Kickstarter due to its more lenient policies regarding quasi-medical products.
• Kickstarter was uncertain about accepting the product, while Indiegogo allowed it as long as it could be sold in the USA and didn't make medical claims.

Indiegogo Campaign Experience

• Lewis describes the initial launch as "terrifying" but emphasizes the importance of preparation and playing the Indiegogo algorithm.
• He stresses that crowdfunding success relies on leveraging the platform's promotional capabilities.
• The initial 24 hours were crucial, with early sales (around $20,000-$25,000) helping to get noticed by Indiegogo.
• Friends and family contributed significantly in the early stages, providing initial momentum.
• A small advertising budget was used, primarily through Facebook advertising, to drive traffic.
• The Indiegogo email list proved to be a powerful tool for driving sales, with prominent placement resulting in significant revenue boosts.

Backer Relationship Management

• Lewis emphasizes the importance of building relationships with backers, who are essentially investing in a promise.
• He personally interacted with backers via Skype and Zoom, fostering trust and gathering valuable feedback.
• A dedicated beta backer group provided crucial testing and feedback, helping to improve the product.
• Honesty and transparency are key, as backers understand the inherent risks of crowdfunding.

Learning and Transitioning into New Verticals

• Lewis advises aspiring entrepreneurs to "soak up all the information you can" and be realistic about the challenges.
• He recommends learning from both successful and unsuccessful crowdfunding campaigns.
• He highlights the value of resources like CrowdCrux and YouTube for gaining knowledge.

PR and Media Outreach

• Lewis shares his experience with PR, noting that traditional press releases were largely ineffective.
• Major media appearances, such as on the Ellen DeGeneres Show, came about through organic discovery rather than direct outreach.
• He recounts an anecdote of getting on German TV by strategically positioning himself at CES.
• He suggests that paying a well-connected PR company may be necessary for effective media outreach.
• He also advises to get "trust badges" on your site to build credibility.

Software Tools and Resources

• Lewis recommends using standard software tools for video editing and project management.
• He cautions against relying solely on standard PR software for media outreach.

Book Recommendation

• Lewis recommends "Man's Search for Meaning" by Viktor Frankl for perspective and resilience.

Final Tip and Encouragement

• Lewis shares a quote: "If you're satisfied with a little, enough is as good as a feast," but notes that crowdfunding requires an "all or nothing" approach.
• He encourages aspiring crowdfunders to set themselves up for success and give it their all.

Conclusion

• Salvador thanks Lewis for sharing his insights and encourages listeners to leave positive ratings and reviews for the podcast.
• He promotes his one-on-one coaching calls as a valuable resource for launching successful crowdfunding campaigns (crowdcrux.com/coaching).

Notable Quotes

• "Inventions are easy, business is difficult." - Lewis
• "Crowdfunding backers are a special group of people...they give you money on trust." - Lewis
• "If you're satisfied with a little, enough is as good as a feast." - Lewis (though he notes this doesn't apply to crowdfunding)

Technical Terms and Concepts

• Electrical Stimulation: Using electrical impulses to stimulate nerves and muscles.
• Indiegogo Algorithm: The set of rules and factors that determine which campaigns are promoted on the Indiegogo platform.
• Beta Backer Group: A group of early backers who test and provide feedback on a product before its official release.
• Crowdfunding Ecosystem: The network of platforms, backers, and resources that support crowdfunding campaigns.

Logical Connections

• The podcast episode begins with a general introduction to crowdfunding and then narrows down to a specific case study: Lewis's Bionic Gym campaign.
• Lewis's background as a medical doctor provides context for his invention and his understanding of physiology.
• The discussion of Indiegogo's algorithm leads to practical advice on how to increase visibility and attract backers.
• The importance of backer relationships is linked to the need for transparency and trust in crowdfunding.
• The episode concludes with general advice and encouragement for aspiring crowdfunders, drawing on the lessons learned from Lewis's experience.

Data, Research Findings, or Statistics

• Bionic Gym raised over $4 million on Indiegogo from more than 8,500 backers.
• Lewis mentions that initial sales of $20,000-$25,000 in the first 24 hours helped to get noticed by Indiegogo.
• He notes that a prominent placement in the Indiegogo email list could generate $50,000 in sales.
• Shivering occurs at a frequency of 7-8 Hz, which is the optimal frequency for calorie burn.

Synthesis/Conclusion

The podcast episode provides a detailed look into the successful Indiegogo campaign of Bionic Gym, highlighting the importance of preparation, understanding the platform's algorithm, building strong relationships with backers, and leveraging PR opportunities. Lewis's journey from medicine to entrepreneurship offers valuable insights for anyone considering launching a crowdfunding campaign, emphasizing the need for realism, perseverance, and a willingness to learn from both successes and failures. The episode underscores that crowdfunding is not just about raising money but also about building a community and bringing a vision to life.