It’s been a long time since our last post. Despite this, it has been a joy to see a constant flow of new subscribers – sorry we’ve kept you waiting.
So what’s happen while we’ve been a little less active on the blog..
New product launch on Kickstarter – Bike Hanger Copenhagen series.
Most important stuff first – we’ve recently launched our latest Bike Hanger on Kickstarter! See and support it here: https://www.kickstarter.com/projects/820118192/the-bike-hanger-copenhagen-series/
It’s been in the works for a while, and we finally got the result we were aiming for. The change goes hand-in-hand with our switch in suppliers, and don’t worry, we’re still producing in Northern Europe 🙂 Now the quality is even higher and instead of chromed metal we use Aisi 304 grade tubing.
The new Bike Hanger is inspired by white-walled flats of Copenhagen with the light colour pallette, as is the shape ,to go with the taste of bike lovers who are more into modern looks than our original vintage looking Bike Hanger.
Some special work We’ve had a couple of cool projects where we’ve made some bike trailers and special sidecars. We can’t talk about the latter too much yet due to the status of the customer’s project. But the hint here is to look our for some green bikes and sidecars in Amsterdam. We’ll share some pictures on our instagram soon. The other custom project we just finished are bike trailer for bike rental company called Donkey Republic. Check them out if you haven’t already – they have an excellent platform for renting bikes when travelling, we’ve used them with my wife in different cities.
Extra project Another one you might be interested to hear about is a personal project where I cut up an old frame I had lying around. So I’m using the rear triangle from it and the fork. The fork has been shortened and disc break mounts have been added. The frame so far still lacks some tubes and disc brake mounts of its own, as paid jobs need to come first – but I’ll get there one day.
The bike will feature disc brakes, alfine 8-gear hub, 750W motor and 52V 14,6 Ah battey. So it will be fast and able to carry a lot..
Thanks for tuning in! Hopefully you won’t have to wait so long for the next one.
Talking as a physical product company – crowdfunding is an excellent tool from companies to present an idea and turn it into a product fast. It is a platform that puts smaller and larger companies on a relatively plane playing field – so that all of us can pitch an idea to a large crowd like Tim Cook on Apple’s annual iPhone release. Whilst there are countless niche platforms, some regional, some area specific, there are only 2 truly global names when it comes to reward based crowdfunding – Indiegogo and Kickstarter. As we have used both, we would like to share what we have learnt so that you can make the best choice with a shortest possible learning curve.
The volume – First of all, let’s look into some general, non-project specific, numbers and comparisons between the two platforms. Firstly you should know that whilst Indiegogo is available for creators around the globe, Kickstarter isn’t (supported countries can be found here). While this can be an issue, there are many creators opting to favor the latter platform, going the extra mile to register a company in one of the supported countries. Why so? Perhaps the most obvious reason in sheer traffic – according to SimilarWeb extension, Kickstarter gets 54,7 million visits every month vs Indiegogo’s 26,9 million. Further more, the success rate on Kickstarter globally is currently 34,5% versus 9,8% on Indiegogo (up to some debate as unsuccessful project often get deleted). You can check out all stats on Kickstarter yourself by using advanced search and excel.
Marketing budget – On the other hand if you have deep pockets, and know your way around using Google and Facebook ads, then you might look towards Indiegogo as they have implemented those tools directly into the platform. With a few steps, you can connect your project pages to tracking pixels and retarget visitors so that you have a larger chance of sealing the deal with your project visitors. On top of that, Indiegogo is moving towards being a marketplace for projects that have already been funded throught their In Demand section, which is essentially a marketplace where you can keep selling your project even after the project has ended.
Funding type and currency – Other basics we would like to mention here, but not in great detail are that Indiegogo allows you to create a project with both flexible funding and fixed funding. Flexible funding meaning that even if you don’t hit your goal, you still get the money you raised. Fixed funding means that you only get to use the funds once you exceeded the funding goal. All Kickstarter project run on fixed funding platform. Another factor is that Indiegogo lets you choose the currency for your project, Kickstarter will run on a currency of creator’s country. As we took part of an event for Kickstarter creators in Copenhagen, a crowdfunding agency showed us how badly the success rate of project had dropped once Kickstarter expanded to Denmark. Part of the reasoning being that it took so much commitment to register a foreign company to even launch a project, but one reason could simply be psychological. If you sell a product which cost 750 DKK or 99€ then it will be much easier for people to go for the 99€ price mark, it simply seems smaller, this applies especially for US based supporters, only used to dealing in one currency. This may well be a solid factor as 76,9% of all project are launched in US, thus creating a US based community of supporters.
Alright – time to talk about our specific experiences. By now, we have run 4 campaigns on Kickstarter, and we started 1 on Indiegogo. Here are the projects in chronological order –
The two projects we want to focus on are the two last ones. They are virtually the same project, launched on different platforms. Why did we launch on 2 different platforms at the same time? Well we didn’t. First we launched on Indiegogo. For the first time since launching our company, we had some funds, not much, but some funds for marketing of the campaign, and like mentioned above, Indiegogo has some things going for it that Kickstarter doesn’t. So based on our experience, we thought it would go at least as good as one of our project in the past. But this is where it all gets interesting.
Just like with other projects, we had prepared our media list, organized our contact etc. More tips on this here. We went ahead with the Indiegogo launch and got pretty decent traffic for the first couple of days. Only a few backers, but decent traffic, so we were not giving up. After the first days, the traffic slowed down, only generating between 30 and 6 visitors a day. We had set up our retargeting ads, so that gave us a little bit more visibility, but as a strong start is the most important part of a crowdfunding project, then is simply didn’t have any meaning continuing as we failed to get much funding and media coverage. Thus we wrote to Indiegogo explaining our situation and they luckily agreed to take down the project.
About a week after this, we launched the same project on Kickstarter. We had of course wasted some good leads as we couldn’t approach all of our contacts again, but even so, the internal traffic was about double that of Indiegogo within the first days and continued to be so throughout the project. More importantly, we got a steady stream of backers and went 5x over the initial funding goal.
Easy decision making – Although 50 000 DKK is not something you will read about on the cover of New York Times, it goes to show how different these platforms are. What’s really clear is that Kickstarter generates far more traffic for a ‘non-viral’ project – which most projects are. Beyond traffic, Kickstarter payments work differently – Indiegogo charges your card right at the time of your pledge, but Kickstarter only charges your card in the end of the campaign. This means you can decide whether you like the product or the idea today, and figure out the money part during the next 30 days (or whatever the amount of days left). And if you didn’t you’ll get a notice and 14 days to fix your payment. Now this will create a few ‘bad payments’, but it makes decision making much easier which translates into numbers.
Further more, the last graph goes to show jsut how powerful the internal community of Kickstarter is. With 16 on Indiegogo, we only received a couple of internal backers, on Kickstarter, 73% of the total of 82 backers were internal. An while we didn’t show up on any charts on Indiegogo, Kickstarter quickly upgraded us to a ‘project we love’ status directly further traffic our way.
So which one should you choose? Kickstarter or Indiegogo? If there would be only one answer, then there would probably only exist one platform. If you have a large marketing budget and a lot of online marketing experience or Kickstarter simply isn’t supported in your country, you might opt for Indiegogo. Plus one might argue that the truly viral projects get their millions on either of the platforms anyway. But for small companies just breaking into the world like us, Kickstarter simply makes far more sense. The size of the community they have built directly translates into numbers, both in internal traffic and in backers.
As an extra tip for creators – especially those hoping to start a full-time business through crowdfunding – crowdfunding alone will, in most cases, not finance your whole project. There will be all sorts of unexpected problems – for example the Coolest Cooler, which at one point was the most funded project on Kickstarter, raised 13 million USD, had to sell on Amazon to be able to ship Kickstarter products. Instead of only relying on crowdfunding, either work out a flexible deal at your current workplace or make a deal with someone who will back you financially. Crowdfunding can be seen as a platform where you prove a concept in real world. You might only raise funding for 20% of the cost of the initial setup for the production, but you prove that there are people willing to pay for this product. This gives you an option to say for example – we need 100 000€ this year, if we get 200 customers, and 40 000€ in sales from crowdfunding, will you come in with 60 000€ as a partner?
Write or call if you have any further questions or comments.
So much has been going on during the last week or two that our ambition of writing an update has fallen flat on its ass, sitting in the back of our minds. Luckily, last day of this week happens to be a bit more relaxed to take a few minutes to give a quick update on what’s been going on.
New product photos & new frame colours – Last week was largely spent on something that had been long over-due, product photos of all our bikes. So we took a couple of days, built all the different combinations of bikes and took nice clean photos of them. You can see the results when looking at the product page of our bikes and designing your bike. PS! Life as a KP Cyclist just got a lot more colourful – many new frame colours! Check it out HERE.
We have some bikes for sale for a bargain – Over the years we’ve accumulated some frames with small scratches or defects by the paint shop. We took some time to look through them and uploaded them to our website as a separate product. It is a full spec bicycle, with very small paint defects, but a huge discount of 200€. Check it out, you might score a bargain! KP Cyclery Bicycle – Scratched Frame Sale This Laguna Blue frame in any components configuration is one of the bicycles available.
Moving a head with prototypes – All the buzz around our Kickstarter (more on that coming below) has not been able to keep our hand off our prototype products, we’ve meen making steady progress with both the Sidecar Bike, which is now also available for purchasing separately from a bicycle and our front rack.
The biggest news last – our KICKSTARTER IS BLASTING THROUGH THE ROOF – After launching the Bike Hanger 2.0 firstly on Indiegogo where it really didn’t pick up, we were feeling a bit beaten down, especially given the past experience with Kickstarter. We took a few deep breaths, and decided to try again on the latter platform. We’re really glad to say it has taken off like no other project we’ve launched in the past. With the first 5 days, it’s already over 300% funded with more than 50 backers! We couldn’t be more thankful for all our backers, it’s a nice ray of sunshine during the years of hard labour, labour of love, but none the less a lot of it. Here’s the Kickstarter video if you haven’t already seen it:
Thank you all for keeping an eye on us, and wishing you a fabulous weekend!