With crowdfunding sites gaining popularity as a way to fund ideas, you may find yourself wondering what happens after money is raised. Back in December 2011 we did a Q&A with the founder and CEO of social enterprise Yellow Leaf Hammocks, Joe Demin. At that time Yellow Leaf Hammocks was about three weeks into a Kickstarter campaign to raise $10,000 to build and manufacture a stand for the company’s sustainable hammocks.
A Crowdfunding Story, Continued…
Having already raised the lion’s share of the ask, Joe and his team still had $3000 left to raise within 9 days. And, as explained in the Kickstarter rules, the entire amount would have to be raised for Yellow Leaf to have access to any of the raised funds.
The group’s hard work paid off. Yellow Leaf Hammocks was able to inspire a total of $11,400 worth of donations to fund their project on Kickstarter, and they did so with 90 backers and 4 days left on the clock. We caught up with Joe to find out about how they were able to garner the remaining the funds and to learn about what happens after money is successfully raised.
Yellow Leaf Hammocks Q&A Follow-Up with Joe Demin
Q | Innov8Social: Joe, thanks for joining us again. And many congrats on the successful campaign! How was it raising the final $3K? Did you try any different techniques than earlier in the campaign to inspire support?
A | Joe Demin, Yellow Leaf Hammocks: Thanks so much! The homestretch was a little nerve-wracking at times, to be honest.
We had heard from a lot of people that donations tend to slow down in the middle of a campaign, then build momentum again during the final days—but we didn’t want to take that risk & come down to the wire!
Toward the end of the campaign, we were worried about overwhelming people with ongoing messages, so we tried to reach out on a more personalized basis. It’s human nature for some people to procrastinate—we ended up with people pledging at the very last minute! One huge pledge came in with less than two minutes left in the campaign!
Through the whole campaign, it was awesome to watch Kickstarter’s statistics and see how people found us—almost 1/3 of our donations came through the social networks (for example, people who saw the campaign in a friend’s facebook status). It was amazing to see that our fans were inspiring a whole new group of people to become involved!
A | Joe : We were ecstatic when we hit $10,000! It was really gratifying and humbling to feel the support and excitement of this amazing community of backers. We posted the news through all our social networks and tried to just express our excitement and gratitude as we soaked in the news!At that point, we had 4 days left in the campaign, but a lot of people didn’t realize they could still pledge after the goal was reached. We did one last push to make sure people knew they could still get a hammock in time for Christmas & be a part of the campaign. That spurred another round of backers, so we ended up exceeding our goal by nearly 15%!Once the campaign officially closed, we immediately shipped out the first batch of Kickstarter rewards (the ones that were meant as holiday gifts), then took a nice relaxing break to celebrate over the holidays!Q | Innov8Social: You guys had set up some great rewards for donors. How has the process of following up with the rewards been?
A | Joe : No. Before you start the project, you do all the necessary paperwork & get them your financial info. When the project closes, they transfer you the funds (minus their fee). They also send you an email with some broad tips to engage your backers as you move forward.When the deadline hits, your project page is immediately ‘retired’ from active duty- a notice goes up with the end date and final funding amount. People can still watch your video and you can continue to post updates as the project progresses, which is great.Q | Innov8Social: Finally, do you have any tips for social entrepreneurs on what to do (and what not to do) after raising funds on a crowd sourcing platform?A | Joe : Things don’t slow down when the campaign closes. Once you are lucky enough to reach your goal, you have to immediately switch gears and begin delivering on your side of the pledge.
Plan ahead for rewards fulfillment and make sure that you continue to give your backers the best experience possible. A pledge on Kickstarter is more than a purchase on your website and people are really vested in your success. They’re genuinely excited to hear about how the project is going and it is awesome to continue to interact with them afterwards.