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Crowdfunding Game Changer

By Martin Smith | 979 views | Business

SEC's Late October 2013 Ruling Makes Crowdfunding a potential game changer for marketing, sales, ecom, customer service and loyalty.

Presentation Outline

  1. 1. Crowdfunding

    Marketing, Sales, Ecom, B2B, Cust Service Implications

    Crowdfunding is a game changer. Most think about crowdfunding as an early stage helper, but what are crowdfunding implications for marketing, sales, ecommerce, B2B and customer service? This deck explores the "game changing" implications of the SEC's late October ruling on crowdfunding (now in a 90 day comment period) for enterprise crowdfunding.

    Photo by Rocío Lara

  2. 2. Implications

    • Marketing - more products faster.
    • Sales - investor social nets create demand.
    • Ecom - new channel, more UGC.
    • B2B - platforms & networks crush websites.
    • Cust Service & Loyalty - everyone's a potential "investor".

    Crowdfunding has more implications than its being given credit for. Most pigeonhole crowdfunding into small startups for early stage funding. Crowdfunding will change startups, incubators and the process of angel investing. Crowdfunding will also bring profound change to every functional department in a small to medium sized business and to Fortune 1000 firms.

    Photo by hey mr glen

  3. 3. Sec

    SEC October Ruling = Crowdfunding Game Changer.

    Photo by mdverde

  4. 4. Change

    "The law changes the landscape," said Shmerling, InCrowd's chief executive.

    The law creates a class below "qualified investors" capable of investing for "stock" in a startup. Enterprise crowdfunding may create new ways to invest in beloved brands whose stock isn't available. I worked for M&M/Mars, a family owned company. What if M&M's did a crowdfunding round to create a new candy. M&M's doesn't need the investment, but they do need the community, social shares and advocacy investors bring. In other words, M&M's would be advised to look at "enterprise crowdfunding" as a marketing channel.

    Photo by derekb

  5. 5. Startups

    New Law Creates "Proof of Concept" Crowdfunding.

    Family, such as Jeff Bezos family who famously invested in Amazon, won't be the only source of early stage funding. While family may continue to be the most important source, we may see the rise of "crowdfunding labs" or professional product development labs cranking products through early stage development faster and faster, better and better (since that is what the web does the best i.e. create efficiency of reach and scale).

    Photo by Thomas Fisher Rare Book Library

  6. 6. Marketing

    More products faster from all over.

    P&G discovered more than a million researchers "at least as good as us" when they realized they had to outsource much of their fabled R&D. Crowdfunding means more products are coming to marketing faster from all over, so a marketer's view can't be USA only or their business vertical only. Having a worldview and working knowledge of related categories is the new crowdsourced marketing.

    Photo by Yarrg

  7. 7. Sales

    Investor social nets help build community.

    Investors can be evaluated in a variety of ways. Some large following "social marketers" may earn stock by climbing on a soap box. Family and friends can write checks knowing their potential loss is hedged against other similar investors. Many investors risking a little means no investor will take over the product development process until proof of concept is earned (and then a hijack is much harder). A community of potential advocates and buyers begins to form almost immediately and before any product is fully presented. The value of this early stage feedback will be a CSF (Critical Success Factor).

    Photo by Pink Sherbet Photography

  8. 8. Process

    Process is product, share more faster so Quirky-like.

    Everything is more valuable when shared. Any meeting, brainstorm or drawing can become a source of feedback and investment in a crowdfunding world so process is truly product. He who shares the best the fastest wins.

    Photo by The Slushey One

  9. 9. Ecom

    Crowdfunding = new UGC, social marketing channel.

    Enterprise crowdfunding will find new ways to have great ideas COME TO THEM. The amount of enterprise cost savings and profit increases thanks to "testing before testing" is huge. See for more on the idea of "testing before testing" and its value to ecommerce.

    Photo by The Slushey One

  10. 10. B2b

    Platforms & Networks CRUSH websites.

    Crowdfunding means B2B relationship and content marketers must look to their network. Care and feeding of investor ladden networks is different. Crowdfunding becomes an advanced loyalty program, a way to identify Gladwell's famous "mavens", "sales people" and "connectors".

    Photo by speedoflife

  11. 11. B2b

    Alone & Unloved = DEAD

    Can't do anything alone anymore. Your content must generate LIKES, links and shares or it is a tree falling in a vast forest with no one there to hear it or care.

    Photo by mkhmarketing

  12. 12. Customer Service

    Everyone is a potential investor!

    Crowdfunding becomes a very advanced loyalty program with highly vested partners willing to help build "proof of concept" products faster and with a larger community of acceptance waiting and willing to provide feedback and another round of investment (if needed). Crowdfunding also changes customer service since anyone can be an investor so everyone should be treated as if they ARE an investor or will become one.

    Photo by robjdlc

  13. 13. loyalty

    Crowdfunding = advanced loyalty program.

    Investors provide cash, feedback and community to help launch new concepts into the world.

    Photo by kaniths

  14. 14. Martin W. Smith