EP #523 How This Campaign Raised $510,280 on Indiegogo | Base Case

Key Concepts:

• Product Validation
• Community Building
• Maintaining Campaign Momentum
• Driving Traffic
• Building Trust, Transparency, and Credibility
• Product Pricing
• Indiegogo vs. Kickstarter
• Pre-launch Strategy
• VIP Program
• Transparency
• Co-creation
• Team Building

1. Introduction and Guest Overview

• Salvador Brigman introduces Arthur, the creator of Base Case, a portable mobile workstation, who raised over $340,000 on Indiegogo.
• Arthur's background is in corporate finance, private equity, and M&A, focusing on acquisitions in the beauty industry.

2. Base Case Product Details

• Base Case is an ultra-portable workstation designed to fit in a carry-on case.
• It features 24-inch screens and patent-pending telescoping legs.
• The workstation can be set up and taken down in under 30 seconds.
• Arthur was inspired by his love for travel, being a "workaholic," and products that transform.
• He wanted a solution that allowed him to have a full workstation setup anywhere, similar to a corporate office with dual monitors.

3. Creation Story and Prototyping

• The idea originated about a year prior to the podcast, when Arthur was considering starting his own consulting firm and working remotely.
• He initially prototyped in his garage, modifying a hard-shell suitcase.
• The design required re-engineering the hinges to allow the screens to open in a "hot dog" style rather than "hamburger" style.
• He built about five suitcase prototypes and received positive feedback when using them in public spaces.

4. Crowdfunding Decision and Rationale

• Arthur chose crowdfunding to invert the cash conversion cycle and get inventory prepaid.
• He also wanted to gather market feedback before investing heavily in inventory.
• The crowdfunding experience provided valuable insights before committing significant capital to engineering, design, and inventory.

5. Pre-Launch Strategy and VIP Program

• Arthur emphasized the importance of building a grassroots community before launching.
• He created a pre-launch page to drive traffic and collect email addresses.
• A VIP program was offered, requiring a $50 deposit for benefits like lifetime discounts, early access to product development, and access to a private Facebook group.
• Over 1,000 people paid the $50 deposit to become VIPs.
• VIPs received a secret perk with a tailored discount, not visible to the general public.

6. Launch Day and Initial Success

• The campaign reached its $50,000 goal within one hour of launching.
• The team set up a "command center" using Base Cases to launch the product.

7. Maintaining Momentum and Transparency

• Arthur discussed the importance of maintaining momentum after the initial launch surge.
• He highlighted the public nature of crowdfunding and the need for transparency.
• Transparency involves being upfront, candid, and vulnerable with backers.
• He personally handled inbound Instagram messages and emails to provide customer service.
• Mistakes were openly acknowledged and addressed.

8. Handling Negative Feedback

• Arthur shared his approach to dealing with negative comments on social media.
• He responds with honesty and offers to discuss concerns, often turning critics into allies.
• The key is to be open, vulnerable, and graceful in addressing criticism.

9. Indiegogo vs. Kickstarter

• Arthur chose Indiegogo because it offered more flexibility in setting up perks.
• Indiegogo allowed the use of renderings alongside working prototypes, which was important because Base Case was still in the prototyping phase.
• Indiegogo representatives visited their booth at CES and verified the functionality of the prototypes.

10. Rewarding Aspects and Key Wins

• The most rewarding aspect was the positive response from various organizations, including a branch of the U.S. military.
• A significant win was when a large hedge fund (a household name) visited their booth at CES specifically to see Base Case.
• They also received interest from several Fortune 500 companies and foreign governments.

11. Advice for First-Time Creators

• Create an innovative product that grabs attention.
• Recognize that crowdfunding is a numbers game.
• Use the "credit card test" to gauge genuine interest in the product.
• Focus on building a strong team.

12. Addressing Potential Regrets and Future Improvements

• Arthur stated that he doesn't have many regrets about the campaign.
• He suggested improving communication with VIPs regarding the timeline for receiving the product.
• Setting expectations about crowdfunding being different from normal e-commerce is crucial.

13. Closing Remarks and Final Quote

• Arthur shared a quote from Scott Galloway: "Greatness is in the agency of others."
• He emphasized the importance of surrounding oneself with a great team.

14. Additional Resources Mentioned by the Host

• Crowdcrux.com/kickstarter: Free Kickstarter course.
• Crowdcrux.com/67: Information about the book "The 67-Day Rule."
• Crowdcrux.com/coaching: Booking link for one-on-one coaching calls with Salvador Brigman.
• Fulfillrite.com/checklist: Kickstarter fulfillment and shipping checklist.

15. Synthesis/Conclusion

The podcast episode provides a detailed account of Arthur's successful Indiegogo campaign for Base Case. It highlights the importance of product validation, community building, transparency, and strategic decision-making. Arthur's insights offer actionable advice for aspiring crowdfunders, emphasizing the need for a strong team, a compelling product, and a proactive approach to engaging with backers. The episode also underscores the value of choosing the right crowdfunding platform based on specific project needs and goals.