EP #527 The Exact Strategy Behind a 6-Figure Indiegogo Tech Launch | SoCool

Key Concepts

• Crowdfunding (Kickstarter, Indiegogo)
• Prototyping and Manufacturing
• Audience Building and Marketing
• Product Development and Design for Manufacturing (DFM)
• Importance of "Boots on the Ground"
• Fulfillment and Shipping
• Risk Management and Quality Control

Main Topics and Key Points

Introduction

• Salvador Brigman introduces the podcast episode featuring a creator who raised over $196,000 on Indiegogo for an innovative refrigerated smart pet feeder.
• The episode highlights the journey from prototyping to manufacturing, emphasizing persistence, smart approaches, and providing a great experience to backers.
• The podcast will cover the importance of having "boots on the ground" during product development, especially for electronics and engineering-related products, and the marketing strategies behind the successful launch.
• Listeners are encouraged to visit crowdcrux.com/kickstarter to receive lessons on launching a successful crowdfunding campaign.
• Crowdcrux represents dedication, hard work, and a willingness to take risks to build a brand and achieve crowdfunding goals.

Interview with Leslie and Ahmad

• Introduction of Guests: Leslie, the idea person with a healthcare background, and Ahmad, an electronics expert with a robotics background, are introduced as the creators of So Cool, the refrigerated smart pet feeder.
• Product Idea and Development: Leslie conceived the idea, and Ahmad brought the technical expertise. They started prototyping in July 2022, using foam and later 3D printing. By March 2023, they had a prototype they were happy with, and the campaign launched in October.
• Crowdfunding Decision: They chose crowdfunding to raise money for manufacturing and to validate the market demand for their product.
• Prototyping Process: They went through six iterations, incorporating feedback from beta testers to refine the design and functionality.
• Pre-Launch Emotions: The night before the launch, they experienced a mix of excitement and anxiety about meeting their funding goal and fulfilling their promises to backers.
• Backer Demographics: A significant portion (estimated 90%) of their backers were new to crowdfunding, which was a source of pride for the creators.
• Product Design Philosophy: They focused on understanding customer needs through extensive interviews and feedback sessions, aiming to create the "perfect product" without cost constraints.

Marketing and Audience Building

• Fail Faster: Leslie advises creators to embrace mistakes and failures as part of the learning process.
• Marketing Importance: Ahmad emphasizes that crowdfunding involves selling an idea or promise, requiring effective marketing strategies.
• Building an Audience: They built an email list and a Facebook group to engage with potential backers and gather feedback.
• Multimedia Assets: They invested in high-quality photos, GIFs, and videos to showcase their product effectively.
• Manageable Campaign Size: They deliberately aimed for a manageable campaign size (around 500 units) to minimize potential issues and maintain quality control.

Manufacturing and "Boots on the Ground"

• Importance of On-Site Presence: Both Leslie and Ahmad stress the critical importance of being physically present at the manufacturing facility, especially for hardware products.
• Culture and Communication: They highlight the challenges of communicating quality standards and expectations remotely due to language and cultural differences.
• Design for Manufacturing (DFM): Ahmad explains the difference between a prototype and a design optimized for mass manufacturing, emphasizing the need to consider injection molding and assembly processes.
• Quality Control: They share an anecdote about rejecting 50% of the plastic lids due to quality issues, demonstrating their commitment to maintaining high standards.

Technical Aspects of Design for Manufacturing

• Prototype vs. DFM: A prototype is for testing the idea, while DFM considers mass manufacturing constraints like injection mold limitations.
• Injection Molding: Designs must accommodate the opening and closing of molds. Complex designs increase mold costs.
• Ease of Assembly: Designs should consider assembly line efficiency and potential warranty issues.
• Repairability: The design should allow for easy access to components for repair and refurbishment.

Final Advice and Resources

• Book Recommendation: Ahmad recommends "The Startup Owner's Manual" by Bob Dorf and Steve Blank, which emphasizes that startups are in search of a business plan.
• Final Tip: Leslie reiterates her advice to "fail faster" to accelerate the learning process.
• Where to Learn More: The product is available for purchase at happyllamate.com.
• Fulfillment Checklist: A free Kickstarter fulfillment and shipping checklist is available at fulfillrite.com/checklist.

Salvador's Closing Remarks

• Salvador shares his background in crowdfunding and emphasizes the importance of dedication and hard work.
• He offers one-on-one coaching calls at crowdcrux.com/coaching to provide guidance and support to aspiring crowdfunders.
• He encourages listeners to leave positive reviews on iTunes.

Important Examples, Case Studies, or Real-World Applications Discussed

• So Cool Refrigerated Pet Feeder: The entire podcast revolves around the case study of this product, detailing its development, crowdfunding, and manufacturing journey.
• Rejection of Plastic Lids: The anecdote about rejecting 50% of the plastic lids illustrates the importance of on-site quality control and commitment to brand reputation.

Step-by-Step Processes, Methodologies, or Frameworks Explained

• Prototyping Process: Idea -> Foam Prototype -> 3D Printed Prototype -> Beta Testing -> Refinement -> Final Prototype
• Design for Manufacturing (DFM): Prototype Design -> Redesign for Injection Molding -> Sample Testing -> Iteration -> Optimization for Assembly and Repair

Key Arguments or Perspectives Presented, with Their Supporting Evidence

• Importance of "Boots on the Ground": Supported by the creators' experience of needing to be physically present at the factory to ensure quality and address communication barriers.
• Fail Faster: Supported by Leslie's belief that embracing mistakes accelerates the learning process and leads to success.
• Marketing is Crucial: Supported by Ahmad's realization that a great product alone is not enough; effective marketing is essential for crowdfunding success.

Notable Quotes or Significant Statements with Proper Attribution

• Leslie: "I'm just the regular person and I did it and it was terrifying and exhilarating and the hardest work I've ever done in my life."
• Leslie: "Fail faster."
• Ahmad: "Startup is a business or is an entity in search of a business plan." (Attributed to "The Startup Owner's Manual" by Bob Dorf and Steve Blank)
• Leslie: "Nobody cares about your product and your backers more than you do."

Technical Terms, Concepts, or Specialized Vocabulary with Brief Explanations

• Crowdfunding: Raising capital from a large number of individuals, typically through online platforms.
• Kickstarter/Indiegogo: Popular crowdfunding platforms.
• Prototyping: Creating preliminary models or versions of a product for testing and refinement.
• Injection Molding: A manufacturing process for producing parts by injecting molten material into a mold.
• Design for Manufacturing (DFM): Designing a product with consideration for the ease and cost-effectiveness of manufacturing.
• Beta Testing: Distributing a product to a limited group of users for testing and feedback before a full launch.
• CAD Software: Software used for creating detailed 2D or 3D designs (e.g., SolidWorks).

Logical Connections Between Different Sections and Ideas

• The introduction sets the stage for the interview by highlighting the creator's success and the topics to be covered.
• The interview delves into the specific details of the product development, crowdfunding, and manufacturing processes.
• The discussion on marketing and audience building connects to the overall goal of a successful crowdfunding campaign.
• The emphasis on "boots on the ground" reinforces the importance of hands-on involvement in manufacturing.
• The technical explanation of DFM provides context for the challenges faced during the manufacturing process.
• The final advice and resources offer actionable insights for aspiring crowdfunders.

Data, Research Findings, or Statistics Mentioned

• The creator raised over $196,000 on Indiegogo.
• Estimated 90% of backers were new to crowdfunding.
• 50% of plastic lids were rejected due to quality issues.

Brief Synthesis/Conclusion of the Main Takeaways

The podcast episode provides a detailed and insightful look into the journey of creating and crowdfunding a hardware product. It emphasizes the importance of persistence, customer focus, effective marketing, and hands-on involvement in manufacturing. The creators' experiences highlight the challenges and rewards of bringing an innovative product to market through crowdfunding, offering valuable lessons and actionable advice for aspiring entrepreneurs. The key takeaways are the need to "fail faster," the critical importance of being present during manufacturing, and the understanding that crowdfunding success requires more than just a great product; it demands effective marketing and a strong connection with backers.