Crowdfunding Basics – How to Raise Money to Fund Your Invention Idea!

Listen Live While Inventors Pitch Their Product for the Chance of a Lifetime
September 1, 2017
The Licensing Jungle
The Licensing Jungle Discusses Protecting Your Idea with Intellectual Property
September 6, 2017

 
If you invent products or have a start-up that's ready for retail, the Get Retail Ready podcast is THE place to hear stories and gain knowledge with the Get Retail Ready guy Jim DeBetta! Jim is a renowned retail selling expert having sold over 100 million dollars worth of products to the world's leading retailers! Knowing the ins and outs of preparing to and selling to major retailers takes knowledge, experience, and enthusiasm. Join us each week to get the inside scoop on how to make YOUR invention a success! www.weknowbusiness.info The Inventors Launchpad – Roadmap to Success Series is presented by Inventors Launchpad in beautiful Tampa Bay, FL and hosted by Carmine Denisco. Carmine is an accomplished Author, Entrepreneur, Inventor and Co-founder/Managing Partner of Inventors Launchpad. Along with his business partner Rick Valderrama has changed the face of the invention industry and look forward to helping inventors from all over the world move their ideas forward. For more information please visit www.inventorslaunchpad.com

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Podcast Notes

1You Tube Transcription
hi everyone and welcome to the inventors
0:04
Launchpad Network and our show today is
0:07
getting ready for retail I have my
0:09
co-host on with me
0:11
Jim de betta the pro at retail hey Jim
0:13
you over there I'm here as always now
0:16
the go man you get over survived through
0:18
a big sports weekend it was crazy out
0:20
there yeah and I'm sure all the people
0:22
that saw the fight it pretty much when I
0:24
think the way most people thought it was
0:26
gonna go but I think Vegas would had a
0:28
hard time had McGregor one right on the
0:30
bet on the books man yeah I think that
0:33
there would have been alone I think it
0:34
would have been a lot of trouble out
0:36
there if weird outcome right well yeah
0:40
you know you got everything this time
0:41
you got baseball right you got how's
0:44
football starting up actually started up
0:46
you got pre-season for NFL's wrapping up
0:48
I mean this this soccer going I mean
0:50
everything's like going or about to
0:52
start going so it's been crazy so yeah
0:54
yeah I'm sorry if I if you're listening
0:56
to this podcast and it's 2019 it's
0:59
currently August of 2017 and we just had
1:02
it the big fight and that we were
1:05
talking about but it's also baseball
1:06
season it's got preseason football at
1:09
fantasy football you know it's crazy how
1:11
big fantasy football is you know I never
1:13
really got into that but almost all the
1:15
people I talked to they're doing it some
1:16
some in some way or the other
1:19
yeah and I never did it either up until
1:22
a few years ago and then one of my boys
1:24
wanted to do it and you know but with
1:26
all the apps that you can get for your
1:28
phone they make it so easy to do I think
1:30
it's more complicated years ago and they
1:32
treated tracking things on paper now
1:34
it's like you have an app you download
1:35
you put your team in and everything's
1:38
done for you in a way you just got to
1:39
have the draft which we do we do live I
1:42
did for one of my boys this weekend yeah
1:44
we have his friends come over and we do
1:46
the draft in our basement I mean
1:47
literally we put up a board with magic
1:49
marker marker and we write down the
1:51
picks and everybody does their thing and
1:52
it's fun I mean and so yeah if you like
1:55
fantasy it's a much easier thing today
1:57
but it is it's its millions and millions
2:00
of people do it it's crazy and you know
2:01
I think that's kind of the fun part of
2:03
it getting together yelling and
2:05
screaming I want that guy or whatever
2:06
you know I haven't done it but I've
2:08
heard that you know it gets kind of
2:09
crazy right yeah they think some of
2:11
these some of the kids get you know they
2:13
get into it I mean I get into it too you
2:15
want to get certain people and fill out
2:17
your team so yeah it gets a little
2:18
competitive for sure yeah that's awesome
2:20
man I love it I think it's great and
2:21
like you said this time of your audist
2:23
all sports were overlapping and then you
2:27
throw that crazy pay-per-view fight in
2:28
which was pretty cool but what else has
2:31
been going on what's uh what's happening
2:32
on the bitter side you got anything
2:33
going in into retail yeah actually I
2:36
just posted on the we know inventing
2:38
page on Facebook we have a product
2:40
called memo box which is a pill box but
2:43
it's electronic and it comes with in
2:44
there so the old days where you get that
2:47
plastic pill box right with Monday
2:49
Tuesday Wednesday third but if you
2:51
didn't take your pill how would you
2:52
remember to have taken your verb so this
2:56
this memo box is electronic even you
2:58
know and it comes with an app so the app
3:01
will remind you to take your pill or if
3:03
you forgot to take your pill it will
3:05
remind you that you missed your pill and
3:08
that's a lifesaver literally yeah
3:10
certain people that depend on medication
3:13
like you take heart medication or blood
3:15
pressure or anything else that you need
3:17
to take your pills and cannot miss them
3:19
it literally is a potential lifesaver so
3:21
we just got that on to evine which is
3:24
you know the HSN QVC you know one of the
3:27
big three on TV shopping and we're about
3:30
to have it go in Brookstone and have a
3:32
go slimmer all the deals are done just
3:34
wait for it to show up in there so and
3:37
we got a lot of other action on it so
3:38
that's been a big thing and but you know
3:41
again this is one of these things for
3:42
inventors to to understand this has been
3:44
months and months and months it has
3:47
probably been I'm trying to think back
3:50
it could have been as close as a year
3:52
ago when we started and just getting
3:55
everything situated getting the product
3:57
developed all the collateral materials
3:59
the cell sheets the decks the pricing
4:01
the marketing the social media it's it
4:03
and it's in as a team of people it's not
4:05
just like one nurse Dee to this point
4:08
and I always say had they given up like
4:10
a lot of inventors give up after three
4:12
four five months frustrating and I get
4:15
it because you're writing checks
4:15
nothing's coming in and and it's natural
4:19
to want to just hang it up and say you
4:21
know I can't do this I can't afford it
4:22
or it's not gonna work now the success
4:25
starts to come and usually when
4:26
get one or two retailers it starts to
4:29
snowball and you see more people coming
4:31
on and then it gets noticed more and it
4:33
starts to really become successful so
4:35
you know that from that perspective you
4:38
got to hang in there you really have to
4:39
stay in it to see the potential success
4:41
down the road Wow well I'm glad I'm you
4:44
know that's something I want to I want
4:46
to talk to you about a little bit when
4:47
you say writing checks and doing all
4:48
that stuff and I want to get into that
4:50
girl quick but the Hammacher Schlemmer
4:52
company I hear about him a lot are they
4:55
are they in the states or are they hard
4:57
to deal with I hear about him a lot and
4:59
I've been hearing about him more and
5:00
more what do they deal with mostly what
5:03
kind of products
5:03
I think of Hamaker like a Brookstone I
5:06
mean they're they were really big
5:08
competitors years ago and Hammacher has
5:10
been around for well over a hundred
5:11
years maybe like 150 years and their big
5:14
claim to fame as they had a catalog kind
5:15
of the way you know you'd see catalogs
5:17
for many years
5:18
Hammacher always had very high-end
5:20
really unique stuff you know focusing
5:23
like its sumer electronics gadgety type
5:25
things but they've expanded their
5:27
assortments these days but they are
5:29
still a huge player they're big online
5:31
there's still a top top target if you've
5:35
got something really unique especially
5:37
in the consumer electronics area so yeah
5:39
they're really uh they're there I know a
5:41
lot of people don't know them
5:42
surprisingly it's kind of like a fists a
5:44
AFVs the army air force exchange down in
5:47
down in Dallas area they're like a top
5:50
25 or 30 retailer there's some are in
5:53
there and most people don't know who
5:55
they are so there's always retailers out
5:57
that I always tell people this retail is
5:58
out there that you don't even know
5:59
exists whether they're regional ones or
6:01
national ones that that you could be a
6:04
good fit for your product but you just
6:06
don't even know exists so let's that's
6:08
what we know we know those things but a
6:09
lot of people don't know those things
6:10
yeah well that's why it's important to
6:12
you know you could be hurting yourself
6:14
by thinking you could do it on your own
6:15
inventors out there I think that it's
6:16
good that you experience things on your
6:18
own or your inventors but you can also
6:20
be hurting yourself if you go try to go
6:22
the whole distance on your own you have
6:23
to bring in somebody like Jim if you
6:24
want to go to retail it's not it's not
6:27
so much about the product it's it's a
6:30
lot of knowing who to know but also the
6:34
process and that's what Jim is awesome
6:36
at is the whole process of putting a
6:38
product in because that he said it could
6:40
take up to a year
6:40
but if if I did it on my own and I
6:42
filled out the forms wrong I mean that
6:44
would set me back right yeah well and
6:46
sometimes it would stop you yeah
6:48
handle things incorrectly the buyers
6:50
don't always have a lot of patience and
6:51
they could just not want to deal with
6:53
you you're right it does take time and
6:55
you know the thing that we you and I
6:57
discussed about talking today which is
6:58
every inventors like issue is money yeah
7:02
and you know I get like you get carmine
7:05
tons of emails phone calls requests from
7:08
people saying I've got a great product
7:10
and often when I look at it I'm like wow
7:12
that's a really great product and either
7:14
it's an idea or they've developed it and
7:17
they've actually manufactured it and
7:18
they have inventory and their house was
7:20
full of whatever it is that they want to
7:22
sell but now they're tapped out they
7:25
don't have any more money they've spent
7:26
a lot
7:26
tens of thousands of dollars in some
7:29
cases six figures product to where it is
7:31
now they don't have money and what I
7:34
wanted to talk about today was some of
7:36
the options people have and there are a
7:38
bunch yeah oh yeah the main thing is
7:42
that that money can stop you from from
7:45
being successful so it's very very
7:48
important not only to control your
7:50
resources that you have but being able
7:52
to tap into other resources when you do
7:55
get that big break you have to be able
7:56
to capitalize on it yeah and this is not
7:59
just for this business and a lot of
8:00
inventors tend to think it this is an
8:02
issue just in our business you know
8:05
inventing is a business like any other
8:06
so you need money you need money to get
8:09
it going you need money to maintain it
8:11
and then just when you become successful
8:13
or you start doing well sometimes you
8:16
need even more money because to scale
8:18
and to grow now you need even more so
8:20
one of the things that was very
8:23
prevalent forever as long as I've been
8:25
in the business is inventors going to
8:27
angel investors and for those people
8:29
that don't know what an angel investor
8:30
is really in essence it's an angel
8:32
you know when in the figurative that you
8:35
know that somebody you know comes down
8:37
and gives you I mean really you think of
8:40
angel investing that way but an angel
8:42
investor isn't always an entity or
8:44
business person an angel typically
8:47
starts with the people that you know
8:49
your family your sphere of influence so
8:52
alright carmine maybe I come to you
8:54
you looking for help financially and you
8:56
can't help me but you have a friend that
9:00
could invest or would have interest and
9:03
so angel investing starts at home so to
9:05
speak it starts with your friends and
9:07
family and I do know that you know
9:10
there's an issue with some people
9:11
approaching family they don't want to
9:13
they don't want to strain family
9:15
relationships and even approaching good
9:17
friends because if it doesn't work out
9:19
and you know look a lot of these things
9:21
don't work out it creates you know an
9:23
uncomfortable situation for people so
9:26
but that is how it's always been done or
9:29
people will self fund until you know to
9:31
use their savings they'll tap their
9:34
retirement savings they'll use credit
9:37
cards whatever but that's not as
9:40
prevalent today although it is still
9:42
used but angel investors or at least the
9:45
sophisticated ones that do this
9:47
regularly want to see a business plan so
9:49
you have to show them not only that
9:51
you're confident that you can you could
9:54
pull this off but that you surround
9:56
yourself with the team people that can
9:57
help you do it and that you're not only
9:59
going to just give them their money back
10:01
but they don't want ten or twenty
10:03
percent returns on their investment they
10:05
want fifty a hundred two hundred percent
10:06
returns they do otherwise they could put
10:09
their money into other things where they
10:10
can get a more steady or potentially
10:12
less risky return yeah I agree and going
10:16
back to if you're approaching your
10:18
family and friends or neighbors I think
10:20
and and definitely jump in in here I
10:23
think you should treat it as a business
10:24
and be super prepared how a presentation
10:27
have a business plan let them know that
10:28
you're treating it as a business you
10:30
don't want to just walk in and say hey
10:31
everybody you know me I'm Jim I cut your
10:32
lawn and I do all these things for you
10:34
give me some money yeah and people do
10:36
that you're right it's exactly what you
10:37
need to do you need to to some degree
10:39
formalize it it's no different if you're
10:41
you're asking for money from your
10:43
next-door neighbor or from an investor
10:45
who is you know professional that does
10:47
this for a living you should present a
10:49
business plan and it should show how the
10:51
money's gonna be spent what you know
10:53
what the product is how the business is
10:55
going to be marketed how are you gonna
10:56
sell how you gonna handle everything
10:58
fulfillment a whole nine yards and then
11:01
you got to show them how they're gonna
11:03
get a return what's the market size
11:05
there's a lot of things that go into
11:06
this but yes it should
11:07
absolutely be formalized if you're gonna
11:09
approach an angel and because like you
11:11
said you know a professional anybody
11:14
that's going to invest like an angel
11:16
investor is going to require this
11:18
information they won't give you a dollar
11:20
unless you do it so why should you not
11:22
do that and formalize it for other
11:24
people and then it's consistent at least
11:26
people understand what they're investing
11:28
in you feel comfortable explaining the
11:30
risks because that's one of the big
11:32
things here that people understand that
11:33
they may not get their money back at all
11:35
that shouldn't just be done on a
11:37
handshake anymore yeah what I ended
11:40
again we it's funny we could talk about
11:42
just this one piece all or ever because
11:44
it is so important I like it because if
11:47
you're an investor who's a kind of a
11:48
control freak like me and you think you
11:50
have to make all decisions when you
11:52
bring those investors on they're gonna
11:54
have a stake in this so if you don't
11:56
know how to do a certain piece of it you
11:58
might be able to tap in to them for help
12:00
so angel investor might be you know now
12:04
they're a little bit more involved and
12:06
an inventor who wants to do everything
12:07
on their own but sometimes an inventor
12:09
they don't have a skill that's needed
12:11
you might be able to tap into some of
12:13
those investors too now either do with
12:15
them you know help you but also or find
12:17
some way to be able to help yeah that's
12:19
a perfect idea to have an angel investor
12:22
that has business skills and its
12:24
marketing skills or other skills that
12:26
you don't have so you're getting like
12:28
double value there you're getting money
12:30
but you're getting advice or actually
12:32
hands-on assistance like you know when
12:34
everyone watch a shark tank
12:35
you know the Sharks all have business
12:37
experience so and you hear people
12:38
pitching always saying well yeah look at
12:41
you know the money's great but I want to
12:43
work with this one or that one because
12:44
they're great in this particular area
12:46
that's a huge thing but the other thing
12:48
Carmen is you know as we just said angel
12:51
investing although it still exists the
12:54
big thing today the really big thing and
12:56
I think really a savior for inventors is
12:57
crowdfunding a lot of people hear that
13:01
you know the name Kickstarter or
13:02
IndieGoGo - the biggest crowdfunding
13:05
websites out there this is has changed
13:08
the game for inventing because a lot of
13:10
people would go to angel investors and
13:11
couldn't get money and then they were
13:13
done that's it a lot of great ideas just
13:15
gone because they'll never see the light
13:17
of day because people couldn't get money
13:18
now you got crowdfunding we
13:21
in essence is a website where people go
13:24
on they create a campaign and it lists
13:28
your story photos of the product photos
13:31
of the journey of your product a video
13:34
usually it's the inventor that's telling
13:37
the story and saying hey they need help
13:38
and then they put it out there and then
13:40
it's it's all over the internet and then
13:42
people come in and donate money it could
13:45
be as little as a few dollars to
13:47
thousands of dollars and in return you
13:50
as the campaign maker give something
13:53
back to them and it could be an orphan
13:55
it's are usually an example of your
13:58
product or a prototype of the product or
13:59
finished piece of the product rather so
14:02
that has become a huge thing today and
14:04
every inventor should at least consider
14:07
these types of funding opportunities to
14:11
get the money they need yeah you know
14:14
it's funny you say that even if you have
14:15
angel investment or you know you can
14:18
always use more money or you can always
14:20
use not only on Kickstarter or social
14:23
media investing as also as a testbed too
14:26
right I mean it's a way to really test
14:28
to see if people like your product yeah
14:30
you'll definitely get feedback on these
14:31
sites
14:33
people say the product sucks it's great
14:35
it's everything in between or this is
14:37
dumb I you see all kinds of things and
14:39
that's fine you know you're gonna get
14:40
certain people that are just negative
14:42
and then there are people who are super
14:43
positive but somewhere in between you
14:45
get a lot of opinions that could matter
14:47
or people make suggestions but the one
14:50
thing I like about crowdfunding versus
14:52
angel investing is that with typically
14:54
with angel investors and now I'm not
14:55
talking about the friends and family
14:56
type they don't like to create that seed
15:00
money if you will the the startup money
15:03
cuz a lot of investors say I have an
15:04
idea but I don't have money to even get
15:06
started and in angel investors don't
15:08
prefer that but with crowdfunding you
15:11
can say hey I have an idea and I need
15:14
money for prototypes I need money for
15:16
CAD design I need money for the
15:18
manufacturing and people will fund that
15:20
so that's a huge advantage over going to
15:22
an angel investor yeah you know it's I
15:24
think that people are people who are
15:26
loving that this time in place in
15:28
history I think people are looking to
15:30
get involved in innovation inventions I
15:33
mean they want to be
15:35
yeah I mean - if you donate like even
15:37
five ten bucks 20 bucks to say you're a
15:39
part of and then if it blows up you know
15:43
you're kind of like one of the people
15:44
that helped to make it happen and that's
15:46
that's great but you know the thing
15:49
about these crowdfunding campaign pages
15:51
- is that people don't realize that you
15:53
don't have to pay the money back this is
15:55
another important thing with an angel
15:56
investor you know obviously if you
15:58
succeed there's you know a way that
16:01
you're supposed to provide a return for
16:03
for the investor with the crowdfunding
16:05
campaign that the payback is the the
16:08
reward or the or the the product itself
16:10
so there is no payback people are
16:12
literally donating money so if you raise
16:16
fifty or a hundred grand to get your
16:18
product to where it needs to be that's
16:21
it you know people have helped you and
16:23
how you choose to reward them is up to
16:25
you but it takes a huge onus off of you
16:28
of having to worry about giving up
16:30
equity or you know having a big payback
16:35
situation what's a huge part and you
16:38
need to plan it and that's one thing
16:40
that you should have is an inventor or a
16:42
business owner some type of plan and use
16:45
use the crowdfunding as a tool to get to
16:48
where you want to be and not having to
16:50
pay that money back or giving up a piece
16:52
of your company I mean that's pretty big
16:53
right a lot of times people an inventor
16:58
or an entrepreneur will give up too much
16:59
of your company have you run into that -
17:01
maybe they aren't really thinking about
17:03
it they're just so blinded by the money
17:04
that they ended up giving away too much
17:06
of the company at the beginning yeah I
17:08
mean people email me and one of the
17:10
first things they'll say is I have an
17:12
idea I don't have money but I'm willing
17:14
to give up like the whole thing or most
17:16
of it and I go right back I go why it's
17:19
your idea you file for patents it's
17:21
yours why are you gonna give up
17:23
everything because you don't have the
17:25
money to get started start a
17:27
crowdfunding campaign ask for you know
17:30
ask friends and family do what you need
17:31
to do save up even I mean people think
17:34
they have to come up with tons of money
17:36
at once but inventing is a process so
17:38
you can do little bits by little bits
17:40
and you only need little bits of money
17:43
potentially in the beginning to get
17:44
started why give up control or
17:48
you know all the potential profits of
17:50
your business by making such an offer I
17:52
always tell people you know I don't want
17:53
any part of that because it's not my
17:55
idea it's your idea no I totally agree
17:58
and we've been doing this a long time
17:59
Jim prior to this crowdfunding craze you
18:03
know it was very tough but when when
18:05
this crowdfunding started picking up I
18:07
was so happy for inventors that they had
18:10
a ability to get money it's kind of like
18:13
pre-sales in a way if you choose to give
18:15
a product to them or deliver it I mean
18:17
I've invested in boatloads of
18:19
Kickstarter campaigns I have to I
18:21
definitely you know if I see and I
18:23
usually like to listen to their story
18:25
like if you go on like Kickstarter and
18:27
you see the stories and you hear the
18:30
reasons why and you know we always joke
18:31
about how if you go in front of a retail
18:33
buyer they don't want to the buyers
18:34
don't want to hear your story but here
18:36
this is this is the exact opposite on
18:38
these sites this is exactly when you
18:40
want to share your story and get people
18:42
emotionally connected to what you're
18:44
doing
18:44
and if it's a product that really helps
18:46
a lot of people then people connect even
18:48
more and then even better if they donate
18:50
or even if they don't combine they share
18:53
the campaign and that's a big part of
18:54
this marketing these campaigns is
18:56
critical because sometimes you go on and
18:58
you look at a campaign you it's not so
19:00
great the way it's done or the videos
19:02
aren't good or it's just not well laid
19:04
out but the power of people like sharing
19:08
and and having other people get involved
19:10
you never know who it's gonna get shared
19:13
with and and so it's really about
19:15
getting a lot of people to give you a
19:17
little bit of money and it adds up so if
19:19
you get hundreds or even thousands of
19:20
people to donate right isn't it easier
19:24
to get 20 or 50 bucks from a thousand
19:27
people than it is to get fifty thousand
19:29
from one person yes it is all right so I
19:31
always tell people I'm like this is why
19:32
I love crowdfunding because you can do
19:35
that you can get little bits versus
19:37
trying to go to one person and get a big
19:39
chunk of money who's gonna own your coat
19:41
and he's gonna tell you what to do and
19:42
how to do it you do this and you do it
19:45
right and it sets you off you're now
19:48
free to run your business pretty much
19:50
the way you were gonna run it before you
19:52
had the money now you have the money and
19:53
you can go do that correct and you have
19:55
all those little soldiers out there that
19:57
believe in your product they're gonna be
19:58
talking enough so as you said they have
20:00
pride because if you do
20:02
make it or when you make it and it's on
20:04
store shelves they're gonna tell
20:05
everybody that they helped you get their
20:08
product on a store shelf so if you have
20:09
ten thousand people who invested that's
20:12
ten thousand people that are gonna be
20:13
yelling and talking about your product
20:16
so it's gonna equate out to even more
20:18
sales when it hits retail yeah there's
20:20
no question that's again power of
20:22
marketing and social media huge so
20:24
you're really doing a lot here you're
20:26
not just raising money right you're
20:27
you're kicking off your campaign you're
20:29
exposing the product now I know there
20:31
and I won't get into this and I know you
20:33
don't want to either into that and legal
20:36
issues how much you're sharing up you
20:37
know early or not I'll leave that to the
20:40
patent attorneys but overall though you
20:44
know especially for people that have a
20:45
product or that you know they have
20:47
patents on it where you know they don't
20:49
have to worry about you know people
20:51
knocking it off this is I'm telling you
20:53
this has been the biggest thing in
20:55
inventing that I could think of since
20:57
inventing other than the creation of
21:00
social media like Facebook and Twitter
21:02
prior you know those two things alone
21:05
have changed this business and I who
21:08
knows what's next
21:09
I would say what what else could they
21:10
possibly come up with something else to
21:12
help the business obviously the TV shows
21:15
like Shark Tank er have been a huge huge
21:17
help I mean they all this but all it
21:20
adds up to is it's getting easier for
21:23
inventors to not only get their products
21:25
developed but to get funded and to
21:28
market them it's it really isn't I mean
21:30
I don't know what else could possibly
21:31
come along that could top all this
21:33
somebody will come up with something but
21:35
really that the tools are there no and
21:38
and the thing about it is Jim you know I
21:41
can tell you you know you're excited
21:42
about this because when you have the
21:44
ability even if even if you don't bring
21:46
this person on as a client to you you
21:48
all right you have your bill to say
21:49
listen I can't help you too much go to
21:52
Kickstarter go to go to this social
21:54
media site go to the crowdfunding site
21:56
you have the ability to give them
21:57
something to try to help them if they
21:59
don't take your advice that's okay but
22:01
instead of just you know prior to this
22:02
you were just like hey man I can't help
22:04
you you know but now you have the
22:05
ability to help them yeah and it is
22:07
because like I said a lot of people
22:09
actually coming there a lot of people
22:10
will never know about write this because
22:13
they've given up right away they have a
22:15
great idea and
22:16
nobody will ever hear from them because
22:18
they felt like they didn't have any
22:19
options now they have options so if
22:21
anybody's listening today this is huge
22:24
you know and look reach out to us you
22:26
know we could show you it's and by the
22:28
way takes literally like a couple of
22:30
minutes to go onto Kickstarter or
22:32
IndieGoGo and there's a lot of other
22:33
sites these are the two Biggie's and set
22:35
up an account you know creating a
22:37
campaign obviously takes work and some
22:40
knowledge but I always tell people go on
22:42
and look at other campaigns then you can
22:44
see consistently what people do for the
22:47
especially the ones that are successful
22:48
and then really you just kind of start
22:50
copying what other people are doing
22:52
Udrih short great video have a great
22:54
story have good rewards it's really not
22:56
very difficult
22:58
I think the any average person can do
23:00
this I mean with a little advice can
23:02
really amp it up but really it's a
23:04
simple thing to do and I encourage
23:05
everybody to at least consider going on
23:08
and looking if you're looking for money
23:09
to do it that way yeah and don't you
23:12
know it's gonna have to spend some time
23:13
on as Jim said go on treat it like a job
23:17
I mean if somebody's gonna be giving you
23:18
fifty a hundred thousand two hundred
23:20
fifty thousand dollars spend some time
23:21
and really decide on it just don't do
23:23
you know oh I'm going to do a
23:25
Kickstarter campaign today and throw
23:26
some stuff up there is it just you know
23:28
it's not gonna happen because the story
23:31
has to be intriguing too so real quick
23:33
Jim what do you think of the top pieces
23:36
or things you would need for this
23:38
campaign to be successful you know you'd
23:40
have to go through all of them but the
23:41
top things that are important for a
23:42
successful campaign well I think the
23:45
video is the biggest piece because
23:48
that's the part where you connect with
23:50
people right I mean it's one thing to
23:52
write out your story ya need to tell it
23:54
so if people go on and click on the
23:57
videos I mean some people spend a ton of
23:59
money on professional videography I
24:02:00
don't think you need that I think some
24:03:00
of the best campaigns people are doing
24:05:00
with their iPhones and probably I don't
24:06:00
wanna say this officially but I would I
24:08:00
would imagine that a vast majority of
24:10:00
the videos are done with people with
24:12:00
their phones and why not because the
24:13:00
video quality is fine you just need to
24:16:00
connect with people that so the video
24:17:00
part I think is the most important and
24:20:00
then beyond that having there's a
24:22:00
section on say kick-starts called your
24:24:00
story and this is where you get a lot of
24:27:00
room to write
24:29:00
about why you did this and you could
24:31:00
reach back say years ago you know I had
24:34:00
this issue or problem and you know and
24:37:00
for years I struggled because I couldn't
24:38:00
find something to fix it or to help me
24:42:00
or whatever the case may be
24:43:00
and so I came up with the product on my
24:45:00
own and and here's what I did I went to
24:47:00
the store I got you know duct tape and
24:49:00
glue and go to typing that I shared it
24:51:00
and I tried it at home and it worked you
24:52:00
know it worked then I showed my friends
24:54:00
and neighbors and they thought it was
24:55:00
great this is where you connect with
24:57:00
people people are in essence buying you
25:00:00
here they're they're donating to you
25:02:00
they want to help you if you just get on
25:04:00
it so yeah I just want money I want to
25:06:00
get some prototypes and make millions
25:07:00
yeah yeah I don't think you're gonna be
25:09:00
successful you know this is where you
25:11:00
got to really get emotional and you know
25:13:00
talk from the heart and let people know
25:15:00
why you're doing this those two things
25:18:00
are the biggest things everything else
25:19:00
is a lot of technical things you have to
25:20:00
fill in you know like you know you put
25:22:00
images up and stuff like that but those
25:24:00
two things I think if you nail that
25:26:00
that's at the heart of a successful
25:28:00
campaign well what's good about what
25:31:00
you're saying is that even if you are
25:33:00
going to go to a traditional lending
25:35:00
source or a traditional angel investor
25:38:00
you're still going to need those
25:39:00
components they want to know why you
25:41:00
need it how you came up with the idea
25:42:00
they might not like you said you care
25:44:00
too much about the story but they're
25:46:00
gonna ask for a lot of that information
25:48:00
so either way you're gonna do it but if
25:50:00
you go to a Kickstarter or something
25:52:00
like that you said you don't have to
25:54:00
give up a part of your company or pay
25:56:00
that money back so those elements are
25:58:00
going to be needed anyway
25:59:00
yeah and just as an aside you know
26:02:00
Kickstarter offers an an equity option
26:05:00
people invest but you know at this point
26:07:00
I don't I don't see why so many people
26:09:00
are raising money without it why do that
26:11:00
I mean maybe there's something I'm
26:12:00
missing it obviously these these types
26:15:00
of campaign Kron four new pages that I
26:17:00
mean like the inventing business in any
26:18:00
business it's rapidly changing so who
26:20:00
knows what they'll add or take away from
26:22:00
these sites but for now I don't know I
26:26:00
just think it's you know you
26:28:00
it's almost crazy if you don't at least
26:29:00
consider it and look at it so go to
26:32:00
those site you know Kickstarter and
26:34:00
IndieGoGo those are the two most popular
26:36:00
ones I get the most traffic and ease of
26:39:00
sharing on the internet today yeah now
26:41:00
I've used
26:43:00
I've you know I've invested in in
26:46:00
products on both it seems to me the
26:48:00
IndieGoGo site is more of not a product
26:51:00
site they have products on it obviously
26:53:00
but it's more of themes and different
26:56:00
items I don't know if you've seen any
26:57:00
kind of differences in the two sites of
26:59:00
the difference yeah well yeah
27:02:00
Kickstarter tends to definitely be more
27:04:00
product driven dear here's one big
27:06:00
distinction this is important for
27:07:00
everybody to understand with Kickstarter
27:09:00
if you don't hit your funding goal so
27:13:00
let's say you want to raise 50 grand and
27:14:00
you only get to 40 grand or 10 grand you
27:18:00
don't get to keep the money and what
27:20:00
happens is that people donate like you
27:22:00
arrive if we donate to a campaign that
27:24:00
you give you a credit or debit card
27:26:00
right and they don't charge that card
27:29:00
until the campaign is completed so if if
27:32:00
you don't get to 50,000 in raised
27:34:00
donations your card never get you know
27:36:00
your card never gets charged and so
27:38:00
hence the inventor doesn't ever receive
27:40:00
the money if you go to IndieGoGo they
27:43:00
don't have that limitation if you want
27:46:00
to raise 50 grand and you only raise 20
27:48:00
grand or 10 grand you get to keep the
27:50:00
money so to speak okay now people said
27:53:00
well why don't you just go to IndieGoGo
27:54:00
well as of now as I've learned
27:57:00
kick-started by far it gets the most
27:59:00
action on the internet gets the most
28:01:00
exposure so you know if you really want
28:03:00
to market the campaign you go with the
28:06:00
one that's the most popular so that's so
28:08:00
the drawback is well I guess the pluses
28:11:00
and minuses
28:11:00
you know Kickstarter is the most heavily
28:13:00
trafficked and and recognized brand but
28:16:00
they have this funding limitation
28:18:00
IndieGoGo still very popular not as
28:21:00
popular though so it might be harder to
28:23:00
get exposure but you also don't have
28:26:00
that limitation funding so that's a big
28:29:00
distinction that people have to consider
28:30:00
I've seen people I think try to do both
28:32:00
I don't know I haven't looked into that
28:34:00
but nonetheless yeah yeah I could see
28:37:00
the Kickstarter's point if they say if
28:40:00
you say that hey I need $50,000 to make
28:42:00
this product a success for tooling and
28:45:00
you know design work and prototyping and
28:47:00
things like that and you're only gonna
28:49:00
get twenty thousand you know twenty
28:51:00
thousand isn't gonna really help you but
28:53:00
to the inventors think twenty thousand
28:55:00
will help a little bit but it
28:56:00
won't go to that finish because if
28:58:00
you're promising people product you know
29:01:00
and you're only to get 20,000 you can't
29:03:00
deliver the product I guess Kickstarter
29:05:00
has a reasoning for for not doing this
29:07:00
yeah and that definitely could be reason
29:10:00
the other one I'm thinking of again I
29:11:00
don't know this at all I'm just kind of
29:12:00
we're guessing here a little bit I
29:14:00
wonder if they feel like if everybody
29:16:00
just goes on there and just ask for
29:18:00
money and just gets a few bucks it kind
29:20:00
of diminishes the value of this site I
29:22:00
think it makes it more competitive it
29:24:00
makes it more people have to work at it
29:26:00
you know to get to hit your goal and
29:29:00
then then they can share those success
29:31:00
stories there's got to be some of that
29:32:00
component in there I who knows but to me
29:35:00
I would think that they don't want just
29:37:00
a site full of people raising $500,000
29:40:00
you know I like I think your reasons
29:42:00
better than mine was but you're right
29:46:00
now it does make it more challenging I
29:48:00
mean he's you know who can do the better
29:49:00
campaign who can raise the most money so
29:51:00
right and they put the top campaigns on
29:55:00
their homepage and there's this things
29:57:00
that go on behind the scenes we don't
29:58:00
know but nonetheless like you said it's
30:01:00
there's reasons there's reasons why they
30:04:00
do the things they do or don't do but
30:06:00
either way this is where it's at today
30:09:00
so I encourage people to definitely
30:11:00
check it out yeah have you seen any cool
30:14:00
products on there that you've reached
30:15:00
out to the guys have you looked through
30:17:00
it at all I know I haven't done that as
30:19:00
much as I probably should you know as
30:23:00
somebody that helps inventors I mean for
30:24:00
me that that's a never-ending source of
30:28:00
products to find that it could be placed
30:30:00
at retail I just haven't done that but
30:32:00
you know I I get emails from Kickstarter
30:35:00
I get involved in helping people with
30:36:00
their campaign setting them up so I
30:38:00
definitely see a lot of things and yeah
30:40:00
like anywhere there's tons of stuff but
30:42:00
it's ask using one one website you could
30:44:00
see all these great products so yeah
30:45:00
it's fun yeah we've had some clients
30:47:00
some that we helped with a few things
30:50:00
that gun on Kickstarter and they've had
30:52:00
great success and some of them they do
30:54:00
to make on the campaign but they said
30:55:00
they were bombarded with people even
30:59:00
after that wanted to help out or said
31:02:00
hey you know lost I'll I'll invest so
31:05:00
even if if the if you don't make it on
31:06:00
Kickstarter you know you're getting as
31:08:00
jim has been talking about some good
31:09:00
exposure I mean you're
31:10:00
talk about a site that's frequented by
31:12:00
millions of people daily yeah it's a
31:15:00
win-win I think yeah yeah I totally
31:18:00
agree
31:19:00
so so to me the video is important that
31:22:00
the story is important the product
31:25:00
itself is important I think that that
31:27:00
Kickstarter wants you to have at least a
31:30:00
prototype right I mean you know when you
31:35:00
go on there and you look the the thing
31:37:00
that helps to sell it is the people see
31:39:00
the evolution of your product so I've
31:42:00
been involved in campaigns where people
31:45:00
put up their CAD drawing until the
31:46:00
sketch on a napkin and then they show it
31:49:00
all the way to the finished product so I
31:52:00
think that's a big piece of it is to be
31:54:00
able to show the stages you know at
31:57:00
which the product gets developed you
32:00:00
know again I don't know what limitations
32:02:00
exist officially in terms of you know
32:04:00
where you need to be or at all I know
32:06:00
people go on there and and try to raise
32:08:00
money from zero ground zero so to speak
32:10:00
and so I you know I don't know what the
32:13:00
rules are in terms of that are but you
32:15:00
know who knows I mean stuff too and
32:18:00
it'll probably change again it's a
32:19:00
little wild Westy out there I think
32:20:00
people are you know what happens if you
32:22:00
people you know you run a campaign and
32:24:00
you raise underground but then you don't
32:26:00
deliver the the rewards to people I know
32:29:00
that you know the government or somebody
32:32:00
will get involved soon enough as this
32:33:00
continues to be an outlet just grab
32:36:00
money - so yeah but you know and I think
32:39:00
that Kickstarter and IndieGoGo I think
32:41:00
they do a pretty good job and again I've
32:43:00
never personally run a campaign through
32:45:00
but I have heard that they're they're
32:47:00
pretty serious and they do check most of
32:49:00
the people out which i think is great
32:51:00
they know they don't want people to be
32:53:00
gun-shy about investing but I think it's
32:57:00
as you said a gym I think it is out of
32:59:00
all of the ways of funding whether you
33:01:00
probably before even family and friends
33:04:00
you would rather not do that if if you
33:07:00
can go to a Kickstarter and have you
33:09:00
know thousands of people invest a few
33:11:00
dollars whereas you know going to family
33:13:00
and friends because you know inventing
33:15:00
as we all know it's it's a tough
33:16:00
industry and there's no guarantee of
33:18:00
anything you can have the great product
33:20:00
great product but you know it's a long
33:23:00
road as Jim is explain
33:25:00
at the beginning of our podcast it's it
33:26:00
takes a long time yeah it does and this
33:29:00
is just another piece of the puzzle but
33:31:00
this is a huge potential help for people
33:33:00
so yeah no I totally I totally agree and
33:37:00
you know having I've seen you know with
33:39:00
the the Kickstarter programs and
33:41:00
IndieGoGo program that I've been
33:42:00
invested in I love the way they have a
33:45:00
system to keep people updated and let
33:48:00
you know what's happening with you with
33:50:00
your investment and I guess that's run
33:53:00
by you know Kickstarter or IndieGoGo the
33:55:00
system itself yeah it gets people
33:57:00
encouraging me especially when you get
33:59:00
close to the finish line if people that
34:01:00
haven't donated see that you're really
34:03:00
close they may be inclined to go you
34:05:00
know I'm gonna help I'm gonna help they
34:07:00
do that's a strategy right but it makes
34:09:00
sense I mean people jump on the
34:10:00
bandwagon they see something with a lot
34:12:00
of momentum if they could be the one
34:14:00
that pushes I mean literally there was a
34:16:00
campaign for 50 grand and it was forty
34:17:00
nine thousand nine hundred fifty bucks
34:20:00
and you could be that one person that
34:22:00
kicked it over the edge yeah oh there
34:26:00
you go no I totally totally agree 100
34:28:00
percent
34:28:00
you only have a few minutes a few
34:31:00
minutes left and we kind of went over
34:33:00
the most important pieces of the
34:35:00
Kickstarter campaign or IndieGoGo
34:37:00
campaign what do you think about the
34:40:00
marketing is there a certain place that
34:41:00
you think that they should market or
34:43:00
just everywhere possible social media
34:45:00
whatever they can do yeah and look there
34:48:00
are there are a lot of companies and
34:50:00
people out there that can help do this
34:51:00
but there's a lot about marketing as
34:56:00
much as possible you think you need a
34:58:00
plan there there are all kinds of ways
35:00:00
to market I mean I think just going on
35:03:00
your Facebook page and posting hey I got
35:04:00
a campaign donate is not enough you
35:06:00
really got to get other people involved
35:08:00
there are tools you know on the internet
35:12:00
that can help you you know get emails
35:14:00
out to email lists through your social
35:17:00
media contacts you got to take advantage
35:19:00
of all those you definitely have to
35:20:00
reach out to people who can be
35:22:00
influencers even if they're not people
35:23:00
that can donate but that know people
35:26:00
that can donate you've got to be you got
35:28:00
to be at it all the time it's not a
35:30:00
posted a couple times and you're done
35:31:00
you gotta really go at it really really
35:35:00
hard right from the get-go because you
35:36:00
know I've
35:38:00
learn that the most successful campaigns
35:40:00
raise a majority of their money during
35:41:00
the first few days of the campaign you
35:44:00
really got it even before you launched
35:45:00
the campaign you got to kind of be pre
35:47:00
marketing that you're going to have a
35:49:00
Kickstarter campaign launching next week
35:51:00
or in two weeks and build the momentum
35:53:00
and already start sharing that prior to
35:55:00
the actual moment that it goes live but
35:59:00
yes I mean you should be reaching out to
36:01:00
bloggers the press all kinds of people
36:03:00
everybody that can help that can share
36:05:00
that can influence should be a part of
36:07:00
your marketing strategy but that's again
36:10:00
at the end of the day that's what's
36:12:00
gonna make it or break it is the
36:13:00
marketing yeah and again treat it very
36:15:00
like it's an important part of your
36:18:00
overall plan I mean we're talking they
36:20:00
can raise a lot of money so it you you
36:22:00
have to treat it seriously and marketing
36:24:00
is important there's so many there's so
36:27:00
many projects on Kickstarter and
36:29:00
IndieGoGo that you have to stand out
36:31:00
somehow that's true yeah
36:33:00
there's no doubt about it all right Jim
36:35:00
well I think I think we kind of covered
36:37:00
that a lot I'm glad that we did this
36:39:00
because the Kickstarter part and I know
36:41:00
we were gonna talk about a way talk
36:43:00
about ways of getting in in money you
36:47:00
are investing money for inventors and
36:49:00
you know it's it's they I think the
36:51:00
Kickstarter was it was a good way to go
36:52:00
because I was thinking more on the on
36:54:00
the normal ends like the in the angel
36:57:00
investors and things in what sense but
36:58:00
when you brought a Kickstarter you know
37:00:00
that light bulb went off my head I mean
37:01:00
that's in reality the best way to try if
37:03:00
it doesn't work you can go to ditional
37:06:00
ways but I just love that you don't have
37:07:00
to you know pay the investors back and
37:10:00
you don't you know you don't have that
37:12:00
if you have an investor giving you a lot
37:14:00
of money or your friends and family you
37:16:00
have a kind of a monkey on your back
37:17:00
I mean you constantly have to be proving
37:20:00
that you're doing stuff you have to be
37:21:00
constantly prove you know progressing
37:24:00
I like the indie the IndieGoGo or
37:26:00
Kickstarter that you can get that pixel
37:27:00
up big some big lump sum of funds and
37:30:00
then distribute it get everything done
37:32:00
you don't rat it quickly or get
37:34:00
everything going rather quickly yeah
37:36:00
people have to check it out absolutely
37:38:00
and by the way before I forget you know
37:41:00
we I want to tell everybody about our
37:43:00
Facebook page which is get retail ready
37:45:00
with carmine and Jim or is it is it Jim
37:47:00
and carmine carmine it's wonderful
37:49:00
travel I'll become one guy try Bob
37:51:00
it's carmine and Jim but check us out of
37:54:00
Facebook what we want people to do is
37:57:00
drop ideas on their things you want to
37:59:00
hear us talk about I mean carmine and I
38:01:00
we know we can talk about I mean we can
38:02:00
go on for like years with topics in this
38:04:00
business and talk about a certain topic
38:08:00
over and over in different ways but you
38:10:00
know we in part we do this because we
38:12:00
want to make sure that people are
38:13:00
getting the information they want to
38:15:00
hear so go on our Facebook page get
38:17:00
retail ready with carmine and Jim and
38:19:00
posts ideas of things that you want to
38:22:00
struggle through people already started
38:23:00
doing that and we just put this page up
38:25:00
this past week and that's also a place
38:27:00
where you can go to also listen to the
38:29:00
podcast get the link for it so
38:31:00
definitely we want to encourage people
38:32:00
to share their ideas and get involved
38:34:00
and comment after we post a show let us
38:38:00
know what we're doing right and if we're
38:40:00
not doing something right look we want
38:41:00
to hear that too so we can make this
38:43:00
worthwhile for people to spend you know
38:45:00
30 40 minutes of their time listening to
38:47:00
us one one thousand percent Jim you're
38:49:00
exactly right if you're an inventor out
38:50:00
there and you you're running into an
38:52:00
issue or you have a question believe me
38:54:00
you're not alone a lot of inventors
38:55:00
think that they're on an island and
38:57:00
they're the only ones experiencing
38:59:00
what's happening to them but most likely
39:02:00
an issue or a question that you have if
39:05:00
Jim and I have not heard it then then
39:07:00
it's that would be very odd right you're
39:13:00
not on an island
39:14:00
we're here we make ourselves accessible
39:17:00
all the time you know on the internet
39:19:00
via email we try to answer everybody all
39:22:00
the time so yeah you're definitely not
39:23:00
alone and every inventor goes through
39:25:00
this and you know we're here to help
39:28:00
very good all right Jim well thank you
39:30:00
very much man get back to work go get
39:32:00
some inventions go and get some
39:33:00
retailers and we'll catch up with you
39:36:00
later Jim you got it take care buddy