Happy New Year!
From all of us at Source Direct, we wish you a Happy and Safe New Year!
Crowdfunding your Invention: Best Practices
Chances are, if you are an internet browsing human being, you’ve stumbled upon a crowdfunding website, or have seen people trying to raise money on a digital platform. It’s very common to see folks raising money for a trip, buying a new iPhone, medical expenses, vacations, charity, and even invention launches.
There are a few things to know before jumping into Crowdfunding. If you are an inventor looking to raise all of your funds on a Crowdfunding platform, make sure you know exactly what you’re getting into. There are different rules and constraints for each popular Crowdfunding site…I’ve done the research for you so you know which one works best for you!
Don’t get involved with crown funding until you have a quality video demonstrating your product as well as a functioning prototype to show what your product does!
Kickstarter – This is the most popular, I have seen, for Invention funding. A few things to know: Firstly, it’s an all-or-nothing method of fundraising. If you do not reach your funding goal, you wont get any of the funds pledged. Secondly, there are also fees associated with it – Kickstarter takes 5% of the funds off the top, and then there is also a 3% and $.20 per pledge fee for payment processing (fee breakdown – citation here). Though Kickstarter is the most popular, you may want to avoid it if you don’t necessarily have the largest following and support backing.
Indiegogo – Indiegogo is a pretty substantial platform for Crowdfunding, alongside Kickstarter. From the Indiegogo website, “It is free to sign up, to create a campaign, and to contribute to a campaign.* When your campaign raises funds, Indiegogo charges a 9.0% fee on the funds you raise. If you reach your goal, you get 5.0% back, for an overall fee of 4.0%.” There are a few more fees to pay, and different tiers of funding:
GoFundMe – Finally, the 3rd Crowdfunding source I’d like to go over is GoFundMe. Probably the easiest of all, this platform just deducts 5% and $.30 per donation, and a 3% processing fee for payments (fee structure here). The fee structure is very similar to Kickstarter, however, you get to keep any and all of the funds that you raise, even if you don’t reach your goal. GoFundMe is growing in popularity, and has claimed to have raised $1.2 billion in donations since it’s inception.
Final Thoughts from Source Direct
It’s up to you, the inventor, to make the decision that is most appropriate for your product. From a professional marketing standpoint, keep these thoughts in mind:
- Use Kickstarter If…: You have a large following of people, ready to give. Also, be prepared to have incentives to give to the donors.
- Use IndieGogo If…: You have a medium sized following and a reachable goal in sight. Make sure you use a lot of social interaction to gain a following.
- Use GoFundMe If…: Your following isn’t huge, but your product/idea is something that any browsing donor may be interested in. Promote your GoFundMe as much as possible, because you’ll get all of the funds regardless of your goal…but still set a reasonable one!
We would like to suggest using GoFundMe, because as an inventor, you are relying on any/all funding and assistance to get your product moving. This is a good way to get a head start on your funding. Try out a goal of $1000, see what happens, and then go for more!
Meet Our Staff – Nathan
Every month, we will interview a different member of the Source Direct team! This week, lets chat with Nathan, our Client Networking Director and Sales Manager.
Q: Tell us a little about your position with Source Direct.
A: I was hired at Source Direct to handle Client Networking, Acquisition of New Inventors, and Retail/Online Sales of new products. Pretty much, to sum it all up, I make sure that you feel comfortable with Source Direct when you start working with us, and then I sell your products when the manufacturing has completed. I will be the first person you deal with, and the last!
Q: What inspired you to take on a career helping inventors?
A: I’m a creative guy. I love technology, design, art, innovation, and new products. Coming from a marketing background, I understand the potential with brand new products, so I decided to bring my knowledge to Source Direct!
Q: Give us a rundown of your day at the office!
A: This is a rather interesting question, mostly because every day is very different for me (I actually like that a lot!). One day, I could be utilizing social media to promote a product, and on another day I could be on the phone with big-box retailers, getting product into the stores and online. I try to keep a schedule, but due to how many inventors we work with, that gets a bit hard!
Q: If someone was thinking about working with Source Direct, how would you convince them to do so?
A: I feel as though our product line speaks for itself. We just unveiled our new Inventor Showcase, which is an online resource and e-commerce store to showcase our brand new products, direct from the manufacturer. Does any other invention company do that? The answer is usually no. Most companies “talk the talk” but can’t “walk the walk”. Ask us about our years of retail success in a niche market – I promise you, it wasn’t easy, but it happened, and is still happening!
Q: If an aspiring inventor reads this blog, what are some words of wisdom that you may have?
A: Here are a few things to keep in mind:
- We don’t take every single item. Yes, we are an a la carte, fee-based company – but that doesn’t mean we will do every product! We have to believe in it as much as you do. If you are struggling with yourself about your product, we can help you.
- DO NOT SPEND YOUR MONEY WITHOUT DOING RESEARCH! Most invention companies will charge you a flat rate “to make your dreams come true”. Don’t fall into that trap. I hear from people every week who lost a good portion of their available funds to a scam company.
- Your product/idea is something you value. Do it right the first time. Even if you’ve encountered speedbumps, that’s okay – we have too. The best way to become a great inventor is to learn from mistakes. Our founder, Ed Mauro, has been through everything in the inventing world (he invented many products, including the Club Clean!) – so he has made the mistakes already that will help you in the long run. That’s why we’re here!
Notes from Nathan: I look forward to the opportunity to speak with you! We are real people, with real goals, and a real great attitude! We will do our best to help you in any way we can. Give me a call, and you’ll know we mean business. We offer free consultations and product evaluations.
Thank you for the interview, Nathan! If you want to get in touch with Nathan directly, email Marketing@TheSourceDirect.net or call 888-373-3876, extension 212. Tell him you read his Q&A on the Source Direct Blog!
Our Inventor Store has LAUNCHED!
Howdy, folks! Nathan here. I am the Internet Sales Manager and Client Networking Director for Source Direct. Over the years, we have helped many products see their way to the big box and internet retail stores. I have been working on a new way to showcase our inventors and their products, and what better way than with our own SOURCE DIRECT ONLINE STORE!
Luckily, we were able to secure the name InventorShowcase.net, which is a prime domain and super search-able. Our inventors who complete the manufacturing process with us will be featured on this site as soon as their shipments come in….cool, right? We will be adding more paid ads soon, to bump up traffic and get more visitors to the site.
What does this website feature?
- Full shopping cart functionality and credit card processing.
- “Recently Viewed” and “Featured Products” on the right sidebar.
- Customers have their own accounts to track purchases, change billing/shipping info, and order more products.
- New items added monthly!
This is just one more perk of working with Source Direct. Our team will expertly guide you through the invention process so you can eventually end up on our store site, as well as many others!
Click here to visit our store today!
Feel free to contact me today at 888-373-3876, extension 212. I love hearing about new and amazing products! Mention this blog and you’ll receive a complimentary analysis of your product, and how we can help you today!
I Have An Idea….now what?
Hello readers! Nathan here – I am the Client Networking Director and Social Media Guru for Source Direct. I am starting this blog as a 5 part series to help inventors see their product to completion. Enjoy this blog, and share with your inventor friends!
“Okay, I have an idea for an invention…now what do I do?” This is probably one of the most common questions that we usually get asked. The journey to completion of a product can be very exciting – but everything starts with a solid idea.
You must be very careful. In this age, with social media and information interactivity, it can be very easy to lose track of your confidential thoughts, ideas, and innovations. Many have heard the old saying, “Send a letter to yourself with your idea enclosed…this way nobody can say it’s not originally yours!” Don’t do this! This isn’t a legal way to secure your idea – no matter what anyone says. Make sure that all parties involved in your idea have signed some sort of documentation to keep everything secure.
After you have put all of your thoughts on paper, the very first thing you should do is call us – Source Direct! Our founder, Ed Mauro, is an inventor himself – he’s been in exactly the same place you are now. We can help you go directly from concept to completion, and our 20+ years of experience will speak for itself. We have inventors call us every day, seeking guidance and assistance to make sure that their dream becomes a reality.
Feel free to contact me today at 888-373-3876, extension 212. I love hearing about new and amazing products! Mention this blog and you’ll receive a complimentary analysis of your product, and how we can help you today!
Interview with Ed Mauro, Source Direct Founder
Our founder, Ed, was interviewed today on the Innovation Divaz radio show!
The Innovation Divaz really know the who, what and why of inventing, and love that they can share their knowledge connections and great women invented products with their audience. Meet Melinda Knight – business woman, inventor and expert social media and celebrity gifting guru! And her co host, Dhana Cohen who has been inventing products, businesses, marketing contests, and events for over 20 years! The Innovation Divaz not only co-host this fantastic talk show, they also run the ULTIMATE connection platform for the entire inventor industry at www.inventorznetwork.com!
Source Direct is a member of the Inventorz Network, and looks forward to the opportunities still to come with their organization! Want to listen to the full interview?
