Lessons

Lesson Info

Reward Level Modeling Tool Example

So what I'm gonna do toe wrap up is walk through and it's kind of it's kind of zoomed in to fit on the screen. Um, I'm gonna walk through the ward level modelling tool, and it's gonna be a zoomed in version. We're gonna go up and down and at the end, all kind of back out and show you sort of before and after. So the original goal with the Nash um Kickstarter project with higher. I think it was $100,000 might have been 70 or 80 but it was higher, right? It wasn't 10. It wasn't 30. It wasn't sort of what we talked about. They didn't know to set it as low as possible, so the funding could become the story, etcetera. Um, the way this works is you put your total funding goal. So this is your overall funding gold amount you're open to raise, um, and then this is the duration of your project in days, and this brings to the harsh light of day the amount you need to raise per day to hit that goal. So if they would have just done this simple one number divided by the other number to see, like ev...

ery single day for a month. I have to raise 3003 and $33. That's a lot of money like that takes a lot of, you know, you got to do everything right. Right. Um so these were the old reward levels. Typical. What do we talk about? The $5 Think it is almost a case study in everything we talked about how not to do it. Right? So $5 you have our deepest gratitude. Nobody cares. This cool project wouldn't be possible without fans like you. You'll also receive the exclusive backer updates until the film was released. Oh, so not only do you have my gratitude, you're gonna keep emailing me, right? Not not good. And these are really great guys. And I'm excited to help them kind of relaunch this and be successful. But I'm gonna pick on for a couple minutes. Um, so here, $15 you'll receive the official national documentary Digital movie poster printed out. Or you can save a screen saver. So for $15 so again, msrp e $15 a digital wallpaper, right way, way above msrp e. Now a little bit better, but again, they didn't do the plus. So this is just the T shirt. You don't get the digital thing like, why wouldn't you also give the person who buys a T shirt the digital paper it Now you can have nationally skills on the court. Get a collectible Nash T the nasty only available at this reward level. Um, so $25 for a T shirt, which is kind of a bad idea for two reasons. So just like, never do a five or $10 thank you. Never do a $25 T shirt. And here's why. You're not gonna make much money from a $25 T shirt, because by the time you have to print it and ship it, you know there's not much money left over. And also it's way above MSRP P right when you know really nice T shirt from a decent store might be $25 right? But a typical screen printed Steve Nash T shirt is normally wouldn't cost $25 unless you're at the forum at the Lakers game. Right. Um so here, Uh, yes, it's a copy. So you receive it. $35 digital down onto the film. Once it's released in Canada and the US Plus, you receive the official digital movie poster plus updates. So now it's the digital poster, plus the digital download of the film for $35 right? My wallet was firmly in my pocket when I viewed this the first time, despite being a pretty big national. UM, $50 a keepsake of Nashes Journey. You will receive your very own DVD, you know, once they're ready. So again, jump from 35 to 50. And now I get a DVD that I can't play Now. The DVD thing might be interesting for the elderly, with the crowd in the group, depending on on that film, Maybe that's what they need. Maybe they don't have ipads, Um, so again, some of the levels above, but not many so 75. You receive a print version of the movie poster, plus the DVD copy, plus the official postcard again, you know, not much more value for 25 more dollars and then limited edition T shirt again. How many people actually want the T shirt? The initial design of the T shirt wasn't actually that cool is kind of strange, and then here just kind of keeps getting worse. Um, the director is so excited, we'll arrange a call so you can ask them anything they like. Don't forget to ask them about interviewing President Barack Obama. So Brock is the opening part of the trailer for the national documentary him Talking About Steve Nash. It's part of the movie. They've got exclusive interviews with Snoop Dog and Dirk Nowitzki. It always other players and celebrities and stuff like that. And yet they're not. Including that as part of the digital valuable rewards there, including these other physical rewards that are not as valuable, um, special, thank you and then credits of the DVD again. How valuable is this to somebody to see their name fly? You know, in the end of the movie tonight, up to $500 We love you so much we'll have Ash Nash at Nash Movie follow you on Twitter for an entire year. They have, like 200 followers, and who cares like it's not? Steve Nash is Twitter account. And even if it was so again, thinking about this is a perfect example of like the what's in it for me or the, you know, stand around on the other side and pretend you're the person reading this. This is like the founder of my O. P. A. Red we all get as the creators of this stuff like, Wouldn't it be cool if our Twitter account followed them for a year? Nobody cares. And they're $ $8 to ticket to the national documentary Proof from here in Toronto, Um, again, premieres could be interesting. They could be something where as additional, you know, higher level. That includes everything above. And if you happen to live in Toronto and you want to go to the premier now, maybe maybe you'll pay this if it's more reasonable price and includes everything above. But not many people are gonna hop on a plane. That may be a simple phrase to think about is have I ever asked you if you've ever paid $10 for a chapter of a book that's like the have I ever tests? Have I ever gotten on a plane to go see a film premiere? I never have right Doesn't mean no doesn't mean nobody will, but if you think about your average backer, UM, $2500 an official jersey signed by Steve Nash and then take us. You know, that's a lot even for, you know, signed Jersey $5000 will rent out a theater in your hometown. Kind of interesting like of you, You know much people. Maybe you could divide $ by a whole bunch of people on the run to theater and have a screening with up to 50 guests and try to do the screening before the film gets released. The other thing is noticed. They didn't do the All caps. They didn't do the plus and you get everything above. They didn't do a no brainer level. So this is why. And they had quite a bit of press and quite a bit of traffic and almost no not know they did raise some money, but it certainly was not on track to get funded. Be part of history being the official national commentary film. There's a problem with this. Um, I generally don't like the big dollar amount. Be part of the product beyond Camera one. There's very few people who actually want to be on camera. That's why public speaking is ranked out there with fear of death. Um, and the other thing is, it doesn't make the product better necessarily to take some kid who might have a rich dad and he gets to be in the national for like I know Veronica Mars did. It is kind of probably as much a press stunt as anything, but it didn't improve the end product. And there's just not that many people who really want to do it. So I haven't seen a scenario where I like the whole pay a lot to be in the film. Um, and then this was a different version that will actually interview you. Your you'll appear in the main body, the film. You know, this doesn't mean this is like now I'm not as interested in the film because some joker who paid his way to be on the screen is gonna be in the main part of, So that's, uh, that's that. Now I'm gonna click over to the revised rewards. Now, with everything we know from the course, we've redone these rewards. So for $1 you get the digital poster, the wallpapers, the Nash shooting tips, Pdf. So If I Monash fan, maybe I still play basketball. I still try. Um, a shooting tips like how to shoot three pointers and free throws from Steve Nash again. Notice. It's all digital. It's $ and then for $5 you get exclusive celebrity interview clips. So this is all the stuff that hit the cutting room floor. So this is Snoop Dog own Wilson talking about their relationships with Steve Nash for only $5 you get the plus the digital poster. So is this below MSRP ears? This blow has RPR $5 for all of this stuff. Now for 20 again, you get the national T shirt. I think I'm gonna convince them to change that again. But here at 30 you know the HD download, plus everything about. So now for 30 that in they redid the T shirt to make it look more like the documentary things. So the T shirts cooler. So now let's think about Thomas R. P. For a second for 30 I'm getting T shirt, the HD download celebrity, every eclipse, the B roll digital posters, wallpaper out. That's quite a bit for $ right? So I'm pretty much on the hook at did it a different version of the T shirt for And then, uh, I guess that's a different one. And then the no brainer level. So that keeps a DVD again. I don't think this is maybe the best way to do it. If now, if you wanted to do. If the DVD is a different product than the film, if it's got a bunch of extra out takes if it's in If you get I'm a fan of Macklemore. And when Macklemore released his CD, it was like an alligator leathers. Just like it wasn't real Alligator, of course. But then he did extra artwork inserts. So like if the physical thing is different than just a physical way to play the digital thing, that's different, right? There was a reason to buy the Macklemore, Um, box set over and above, just listening to him on Spotify. Right? So plus a one of a kind mess shooting jersey so super cool, you know, extra jersey again. I got time to remove the national follow you on Twitter like Nash movie, and now we're getting into the you know, the call with director printed movie posters that said, I still think the pricing is too high, but you guys are getting the idea and then the different removing movie premieres. So some of the keys here now there's no brainer level. Now we're saying, plus at every level, see the Caps thing before you had to read every bit of every level to understand what it was. And here, no brainer level one of a kind of shooting jersey, plus a call with directors, print movie poster, trading cards. So the the entire thing is in the all caps, and then the lower case is additional detail. So Toronto Los Angeles afterparty afterparty official Jersey signed, Um, the rent A theater thing is down to $5000. Um, you know, filming a five second clip so they still have some work to do, but you can see it's getting better. So last thing I want to do is walk through some other components of this and just show you how it works. Um, so most of the fields that Kickstarter requires are built into here, so that once you complete this, then filling out your Kickstarter project is a lot easier. So estimated delivery date. I didn't feel any of this stuff in whether there shipping involved or not. So the simple thing here is like at some point member we talked about digital above physical below. As soon as you start shipping the first thing that first physical Adam, you need to collect their address. So everything below that you're shipping it anyway. Um, is there a non U. S shipping fee? So if there's a shipping feeders and domestic shipping is included in your Kickstarter price or it should be, some people say, Oh, add whatever for shipping include your domestic shipping in your actual reward level. This is for international shipping, which can get very expensive. Go to the free websites, the postal service or not, the other websites that show international shipping fees and plugging into here because, um, it adds it all up. Limited quantity. So again, think about what's scarce. If there's ah, 100 early bird price. Maybe you don't have an item that scarce, but maybe you have an item that's scarce in that price range. Right? So the early bird maybe is 40 but it's gonna jump to 60. That creates urgency, because when people read that estimated number of backers, I just put one so it didn't divide by zero, and then it calculates your gross revenues. So the way this works is green cells are stuff that you enter. Blue cells are calculated. You can see the formula there. So this is estimated number of backers times the price. Um, so this will change as you fill it out. Production costs. So what does it cost you to actually create the thing? All right. You could also add advertising cost in here. You could put in a budget for advertising and things like that. Um, shipping cost. So not just international shipping, but what's the domestic shipping if you're shipping anything and then this calculates a plus plus minus all your net revenue. Now, if you add that up, you go to the bottom and you get your estimated net revenue um, obsolete. The date is not filled in here. Now we get into the fees. So here's some, um, just instructions. Enter the data in green Blue is calculated. Don't enter those or you'll delete the formula. Um, so you start with the estimated net revenue, which is where we left off over there. Now we subtract out Kickstarter fees of 5% and just shows you what those fees are. So you know how much you're paying the good people at Kickstarter. And this is how much you're paying the good people at Amazon. And then this is another. This could be general total advertising fees. This is just a place for you to add in. If there's something that isn't covered by the category's above, you can add additional subtract so net revenue after fees. You're starting with 2096 in about 1907 project conversion rates, and now you have to start pulling data from that. This can't be calculated until your project is live. Obviously, so number of backers. Actually, it's his princes actual from Kickstarter, so you could fill this out once a day. You could fill this out every few days of your project, and then the number of clicks Remember, we talked about the KCK Dusty Betley short link number of backers. A number of clicks gives you your conversion rate like we talked about. We keep going. Average pledge amount. Same thing. Number of backers divided by the total amount raised, right. Kickstarter doesn't show you this on the page, but it's just simple one number divided by another. So what this gives you is your average pleasure? Mont maybe years is 25. Maybe a lot of a lot of the ones with the slippery funnel and adding and ton of value have been able to get the average pledge amount up to 50 or 60 or 70 um, remaining using backers. So this is interesting because the remaining amount to raise So this is your your amount raised, minus your total goal minus how much you've raised again pulling numbers live from Kickstarter um, and then the average pledge amount and then their remaining backers needed, and then the typical conversion rate and then the remaining views needed. So these numbers are going to change, and they're gonna, you know, be in flux throughout the campaign. But you can actually say Wow, you know, um, I have a 5% conversion rate, but my average backer gives me $50. So if I get on this particular press, l that it's going to send me this many views, this many clicks if we if all the numbers hold. It'll kind of give you an idea that the key point here, it's not gonna be perfect, because you won't know exactly. You know, the conversion rate of Huffington Post is gonna be different. Like Mike from Selma talked about good eyes sent him or trafficking backers, even though it was a smaller outlet than some other ones. Um, but the key here is just to give you a general estimated feel and feel like you kind of know what's going on, right? Most people don't even do this simple math and figure out what's my average contribution, right? Right. They just they just hope to get it done. So any questions on this? I mean, it's it's the math is not, You know, there's no fancy algorithms. It's just kind of a well organized sheet that helps all the projects that I've helped. They've really found it to be a useful tool to help them think through and remember to calculate shipping and fees and things like that. Yeah, when you're doing a limited like you're saying like the 1st $105 per, do you put like to $5 amounts, or do you just put $505 that one plummeted and then have a $10 amount and just no more $5 prize after that. So I'm not sure if I understand the question. So if you limit you wanna limit your reward toe 100 people, right? And it's done. Would you put in another $5 amount because that $5.1 is maxed out? Or would you just say, Well, I guess you have to donate 10. Now if you want the $1 thing, Yes. So that's a really good question. It depends. You don't want to. Um, so the short answer is, I don't want to make anyone mad. You don't want him to say, Oh, well, I donated quickly because it was about to expire and it was $5. But now she just released 100 Maura $5. I would if you're gonna do something like that, release that one at, like, seven, right? Because then the person who got in at five, even though it's $2 you know you also don't want to You can insert new levels, but obviously you don't want to insert something more valuable. That's at a different level than someone who previously backed right. So think about all of your backers to date and you don't want to give somebody knew something cheaper or a better deal, right? Everything's what if, like at the beginning, you would say like $5 gets you one print of my photographs and that's only going to $105 also gets you this and everybody that donates $5 gets this. Would you ever want do that without? Just get confusing? What's the this in the second case, so $5 gets you a print like maybe $5 gets you one print. Everybody gets that the 1st 100 people to do $5 get two prints? Yeah, that's that's a perfect example of an early bird. And so those are great, and I really do increase urgency. Um, Jimmy Afghans got this great quote in one of his comedy skits. He's like, um, you know, five Big Macs for five bucks. Well, I don't want to lose money on this deal. I've got order a needle five, right. So I don't want to lose money on this deal, so in this case, it's kind of the same thinking, which is, you know, you can create super early that the three levels I wouldn't go beyond three. But because for a given reward, you know, if you go three per reward, you don't want to do too long. Have too many levels. Super early bird, early bird and then regular. And I would put all of them out there at launch so that people can see. Remember, you don't want to feel stupid in general, but you do want him to feel stupid if they had contributed. So if they miss the super early bird, let's just say it's a $40 level for bigger numbers, right? If it's 40 60. 80 Um, I wanted at the super early bird of 40 because I don't want to be the idiot that waited for the same thing when it was 80 right? And maybe at 80. Then there's no cap on it and everybody gets it right. So that is we're thinking about. And so use super early bird in early Bird. Minal is the backpack one, and May did a great job of that like the price went up and up and up. Another thing to think about is even the highest level. The sort of regular, non early bird level should still be below what it might sell for in the store or kind of Mr People. Right. Interesting question here. That I'm very curious. Aloha. Robin wants to know. Do you have to pay taxes and all this money that you receive? Um, the official answer is talk to your accountant. If you're Google, there's a lot of information online. Um, yeah, I am not a tax accountant. I would plan on needing to, um but yeah, that advice is not from you talk to your tax around. A lot of it depends on what is technically treated, as is income. So Okay, it's a great question. Yeah, anyone up like you're saying the M S R p for an e book is 99. Is there anywhere you can do? Research? Like, what would be the M S. R p for a print for a photograph? Like I mean, photographers price their prints So varying. Lee, how would I go about figuring out what my prices should be? Yeah, for something as person. That's a great question for something as personal as a print for like that. You write, the pricing is very variable, and there's not like a standard. There really isn't enormous RP. So I wouldn't really worry about researching what what that is. It's a even for a documentary film, something like that. Like sometimes you will see it in the theater is some nice people See it in an indie theaters and I will go to this early screening, like, kind of all over the map. You're right. I think you kind of know where the bumpers are. Like, this is obviously way too much, and I shouldn't give it away that cheap. Um, the Internet has not been kind to the price of something that used to be scarce that used to be physically printed. Um, but, you know, for photographers, um, what's interesting is when you think about tribes and you think about scarcity and you think about pricing Thomas Hawk, you guys know Thomas talk. I'm sure a lot of people online, Maybe he's one of the more, uh, sort of well known photographers in the world, and yet he gives away all of his stuff online. On a flicker, he takes amazing photos, and then he gives them away for free under the Creative Commons license. And because sort of like the Shepard Fairey thing where he did his art and did his graffiti and went to jail, he didn't just give it away for free. He was willing to go to jail so forcefully give it away for free. And then, you know, that got him the exposure and that got him, the tribe and the fans. And then he did the Obama print, and now he's famous and never has to work again. So, um, I would say again, go back to the your You're doing this for the first time. You're building your tribe. Um, you want them to literally feel like they stole it Like I can't believe she's giving me this much value for free. That said I wouldn't do it at a loss. I wouldn't, you know, kicks her should not be net negative. I've seen people do it really well in break even. But for that particular thing, I would you know, I would talk to other photographers and I would talk to them. I would talk to the people, they're gonna get this and just say, you know, these are the types of products. Ask them that. Say, what would you pay for this? You know, in the store? Or if you found it online on a print thing, like, what would you pay for? And then that's it, Miss R. P. And then go a little bit below that. Yeah, we kind of joked about some of the older people maybe not being typically on Kickstarter funding a lot of projects. But approval wants to know. Just curious. There's any research showing who are the majority of backers. Are the other artists investors, local community members in relation to the project, eyes there, any sort of data that Kickstarter has to learn about who's donating to these people? The one thing that I do know. So go to the Kickstarter think its Kickstarter com slash help slash stats That shows a lot of the numbers. Um, I don't know if there's a lot on the demographics of who they published their some, um, if you Google Kickstarter backer demographics, I would bet some people have done some of that research online. Um, that's another one of the things where it's kind of interesting at a high level, but it doesn't inform who you should reach out to as much as who should you reach out to, right? Um, I think it is one thing they did talk about, that I'm a big kind of believer in this When Spike Lee and Veronica Mars and particularly Zach Braff, when those people showed up on the platform, Um, a lot of people were very frustrated. I got some arguments with some good friends on Facebook and they said one of these celebrities doing showing up on Kickstarter and ruin it for the Indies and the and their heart was in good place, but I knew they were wrong. The data, in fact, prove it took months for that to happen because Kickstarter has all the data and they're willing to show 90% of it to all of us. Right? Um, they made the same prediction I did, which is? People don't generally wake up and say, I've got $100 bill. I'm spending it on Kickstarter. I just need to find the right project. That's not how it works. It's not a zero sum game. It's not IPhone and Android. It's not like people have to have a phone and they're gonna choose between one of the other, as we've seen, the total, the total numbers and the total backing on Kickstarter is going like this. So it's not like it's reached a market saturation. And also, like I said, people find new projects based on other big projects. So the data that proved out was what what I thought, which was even Spike Lee and Zach Braff and Veronica Mars. We're bringing new people to the platform. So think of Spike Lee's fan base, right? He's got a lot more than true fans. And how many of them even knew about Kickstarter, Right? And then they heard that he was doing a Kickstarter and they got there and maybe they back Spike. And maybe they didn't. But kickstart has the data of first time backers that came in through those huge celebrity projects and then went over here and backed the Indies. So it's not a zero sum game. It's not like, Oh, Spike stealing money out of the mouths of these other indie filmmakers, it's no, he's bringing a whole bunch of people that might discover your project. Did you have a question? Were curious to hear if the in studio audience anybody that we haven't touched on If you have an idea if you're gonna start a Kickstarter campaign, if we should start looking for you anywhere, there's anything that popped up throughout the course. That's the first thing you've been dying to. Dio Spurs. Well, I'll be building my tribe So amazing at Salmaniya Photo on Twitter Way did pose the question online. So if any of you want to think on it for a moment, we post it online, and we got some great feedback. But the Melissa Thorn Boom photography says yes, definitely going to get my vegan cookbook from the sampler stage to a full book. You love it Great. Yeah, it was wonderful. And then, um, noodle on it says, I'm definitely gonna start a Kickstarter to finish update. Do it the way I want my thesis Film on Camp Cassadaga Spiritualist Camp in Florida. Wonderful. And you have been checking e my favorite. I think I'll be doing a campaign, but it's definitely 6 to 12 months away. But the big take away for me is that you really need to plan ahead and build a tribe and then do the PR and the social proof before you do the Kickstarter. That's great. And imagine if it's if it's a year away. If it's months away and you get only three emails a day, which is not hard on Kickstarter are sorry on launch rock or any these landing page things. Um, that's emails. That's all your backers. That's all you need. And so I'll be honest. The launch rock is wonderful. It's also kind of the lazy way out. If you have a year, I would be disappointed if all you did. It was a long truck. You should be doing a blogging should be talking about it. You should be showing up as ah thought leader in that space, the lead pages was one of the other things I mentioned, and one of the things lead pages does really well is landing pages specifically for webinars and products. So, um, maybe create the sampler of the Vegan Cookbook. Five page 10 page Beautiful photography is like a teaser and say, Give me your email and download my favorite five vegan recipes in this great thing. Then you have their email. They love you and you can launch, you know 100 project. Um, if you have a year like go beyond the launch rock page and, um are the landing page and do webinars block. However, you want to get it out there talking to your phone and posted on Soundcloud, right? Like because you're gonna learn. Like what I don't want toe, um, sort of launch rock is is awesome. But if you have, if we're talking about a year, not a month Um, there's a whole lot of learnings that you could you could get from the tribe. And, you know, we talked about surveys and start Starbucks gift cards and things like that years and tremendous basically what we did up here in a few minutes on the flip chart by talking to people and comments on the block and everything else that can inform exactly what your people want. And then they already told you what you want when you want. You just give it you just giving the opportunity to buy Well, our good friend Yikes post a question that was too good. Not sure it is great for the Reds were wrapping up the day. Any tips for after the camp campaign is over and you're fully funded. Definitely. That's a very, very yeah, yeah, I know what that's A. That's a really, really good point, and I didn't get a chance to put some slides together in this. But there are lots of great platforms that will help you set up a store and continue to sell your project afterwards. It's a little bit open ended, so it does depend on what your real goal is in building your tribe. A couple things. One I would I think to What's next, right? What's the next Kickstarter project? I don't recommend doing the same project twice on Kickstarter or the same project on both Kickstarter and Indiegogo. But I could imagine you doing this film and now you've got 1000 emails and you do the next film right and grows and grows. And girls, um, so yeah, I would I would think about what's next and look at tools like shop lock. It is a great one for being able to sell your thing, a shop lock. It gives you a nice little widget to put anywhere. It's just a few lines of code and you can say, you know, download my film here for $7 or whatever, and you could put it kind of anywhere on the Web. Gum Road is sort of in that same space. Shopify easy to put together an e commerce site. There's there's a few sites I'm drawing a blank on the actual ones right now, but we can. We can put in the chat later that are specific stores, for it doesn't maybe apply as much to the film category, but they're literally stores for Kickstarter projects that have ended because Kickstarter is this this really interesting store of unique creative projects? But it's sort of like where all the toys go afterwards on DSO, somebody has smartly put up the storefront that says, You know, this is a place that sells successfully back created projects on Kickstarter, and that's the curation of the store. So, um, kind of wrapping up? Let's say I'm a viewer and I logged in this morning and I was like, You know, I really need to fund this great idea, but I don't know where to start. And now they've watched your course and they're, you know, really enthused to go do you have any last words for them before they go forth with this Kickstarter campaign? Absolutely Well, thank you. So when she has been awesome, that last words I would say is pick yourself. So I This concept called The Last Gatekeeper. We talked a lot about gatekeepers today about traditional book publishers with a J. Leon. We talked a lot about venture capitalists and all these great ideas that they said no to. And then people went on Kickstarter and got the funding. And then the veces come running. And so, book publishers, BC's all these traditional gatekeepers that could tell us, you know, the Sundance folks could say no, that that film isn't good enough. It doesn't matter anymore. You can choose yourself. Pick yourself. The last gatekeeper is you. You can build your own tribe and bring your idea to the world. So go out there and do it and tweet me the link. I want to see all the projects that create