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A guest post from Richard Bishop of Empty Cup Media based in Oshawa, Ontario. Crowdfunding via Kickstarter has only been available in Canada since September 9, 2013. I asked Richard to share what his team learned in being one of the first projects on the platform and some of his comments on their success seem to defy conventional advice. Further proof that there is NO blueprint for success.

As a small company foraying into the independent film making industry for the first time, we based part of our film fundraising strategy around running a successful crowdfunding campaign. We first heard about the idea while attending a few Hot Docs workshops over the past two years. After committing to the idea, we did our due diligence – reading books, articles and blogs about other projects’ successes and failures- and we opted to go with Kickstarter as our platform as it had launched in Canada only a month earlier. We thought it would be possible to cash in on some of the general media press surrounding their launch.

When we launched the campaign, we had already completed the production of Heal Myself and we planned on using the crowdfunding money to cover post-production costs. We set a fundraising target of $25,000. We knew that this was a large number and success would require dedication and hard work. Throughout the production of the film, we had continually built an e-mail contact list for all participants as well as developed a solid social media following on Facebook. In our minds, we initially looked at it as a mathematical equation – with connections to over 2,500 people we only needed each of them to donate $10 and we’d be done! Well, we quickly found out that this notion was unrealistic.

We launched the campaign on Oct. 4th and watched the film become 20% funded in the first few days, then the initial flare burned out and stagnation set in. Every day a few people would donate, slowly driving us closer to the goal, but it wasn’t enough to drive us up the popularity matrix on the Kickstarter website. By Oct 30th, 4 days before our campaign ended we had climbed to 62% funded, crunch time set in. It was on that day that things started to accelerate and by the end of the campaign we had reached 106% funded. It was time to celebrate with all those who helped us!

There have been a lot of good posts on this blog already about how to build a campaign to maximize your chances at success, but we thought we’d share some of the things that we learned throughout the process (along with some numerical breakdowns) in hopes that it will help some of our Canadian friends who may be new to the concept of crowdfunding.

Here’s what we learned based on our backer reports and analytics:

-80%+ of our pledges came from people who had direct access to the film either by knowing us personally, liking Heal Myself on Facebook, being on our e-mail list etc;

-Posting update videos on Kickstarter and social media outlets is useful, but time consuming. A more effective use of our time was creating posters, such as these for the same purpose;

-Being featured on the Kickstarter documentary homepage isn’t as helpful as one might think. It did increase traffic and Kickstarter video plays (about a 15% increase), but it didn’t generate much in the way of pledges from people who were not connected to the project in any way (less than 1% of funding);

-Our two most successful award tiers were $100 and $200. The reason for this, we believe, is the rewards we offered at these levels were the most engaging for fans of the film. $100 tier included the special features DVD and $200 tier included the special features DVD and a pair of tickets to a private screening. Backers of our project really gravitated to the idea that they could be part of a physical event – we gave away over 88 tickets in this manner!

-Broad spectrum advertising or marketing had very limited success. We had advertisements on a variety of websites (through our personal connections), went on TV and a radio show, but none of these things brought in significant monetary pledges (less than 5% of our goal).

-Niche marketing was highly successful – we posted online on a variety of blogs and websites that were directly related to the subject matter of our film. Theses avenues brought in a fair amount of pledges (more than 15% of our goal).

-There is no substitute for hard work. We were using social media and e-mail all day every day to contact our personal connections. It was these people who spread the word to their contacts, creating a web of support that reached more people than we could have alone. Relying on your friends and family for help is crucial for projects of the size we undertook.

Although running a successful campaign is great in financial terms, after all you now can go ahead with the next stage of your film project. But the community you’ve built around your film is equally important. We are now in the process of thanking the great people who’ve funded our film and shown interest in our project. We believe that they will be our greatest assets when creating a grassroots campaign of screenings and events once Heal Myself is completed. Finding ways to demonstrate our gratitude and keeping these people informed as the project develops is an ongoing process, something we are continuing to experiment with and learn about. We are open to hearing any suggestions about how to keep our backers engaged going forward. If you have suggestions, please email (info @ emptycupmedia.ca) us.

Best of luck with future campaigns, we hope that some of our experiences can be put to good use!

A quick note to Canadians who are using crowdfunding:

As of early October 2013, the Canadian Government has ruled that all money received through crowdfunding is counted as business revenue. This is the case even if you are an individual raising money for a film without any company ties. This is a big deal as it really alters the amount of money you will receive in the end from your campaign as well as create some more paperwork in order to correctly deal with the tax implications.

The money the crowdfunding source takes as their cut is deductable as business expenses. Also the money that you use to fulfill rewards is deductable. I am not fully sure of all the tax implications and I am sure that this will be an evolving issue as time goes on. These tax rules will certainly inflate the initial fundraising goals for projects making successful projects that much harder to run – especially if you are private sector and don’t have non-profit ties so that you can offer tax receipts for donations!

Empty Cup Media is a video/photo company serving clients in and around the Greater Toronto Area. You may follow the progress of Heal Myself by connecting on Twitter, Facebook or joining their email list.

Sheri Candler November 26th, 2013

Posted In: crowdfunding

Tags: Canada, crowdfunding, documentary, Empty Cup Media, Heal Myself, Hot Docs, independent film, Kickstarter, niche marketing, Richard Bishop, Sheri Candler, The Film Collaborative

This week, our crowdfunding series will focus on filmmakers who found success on their first campaign and have decided to run a second. Today’s guest post is from Toronto-based filmmaker Shasha Nakhai of Compy Films.

My experience with crowd-funding began with the first film I directed, a 20 minute documentary called THE SUGAR BOWL. The film’s bare bones budget was about $10,000, but I only had about $6,000 raised at the time. In order to make the film happen, I knew I had to raise more money. Being a first-time filmmaker, my options were very limited. I heard about IndieGoGo when I came across another film’s campaign and decided to try it out myself. I set a low goal of $3,000 and ran the campaign on my own. I not only met the goal, but exceeded it raising $3,265 and an additional $1,000 outside of the campaign.

This initial campaign was run during a time when there wasn’t yet a wealth of information available on how to run a successful campaign and I found it very challenging and more of an experiment just to see what would happne. I chose IndieGoGo simply because I live in Canada, and at that time Kickstarter required a US bank account.

I think the main reason behind my project’s success was the subject matter, the personal connection I had to the story and the fact that there was a real lack of films coming from the Philippines. I also had a strong pitch video, even though it was very simple. It was a video of me pitching the film at the Pitch Competition, but my passion for the project really shone through.

The Sugar Bowl – Teaser Trailer from Rich Williamson on Vimeo.

The #1 thing I learned from running a crowd-funding campaign was that I had to leave my pride at the door. You can’t be afraid to ask for things, otherwise you won’t get them! Also, framing what you are asking for is so important. The way you talk about your campaign to others makes a huge difference. For instance, using words like “join us,” “support,” “back,” and “pre-buy” instead of “donate” actually makes a psychological difference. It becomes more about an exchange rather than simply begging for money.

It is also important to have a team to work together on a campaign. It is mentally exhausting to take on a campaign by yourself and I was running myself into the ground trying to plan the trip to the Philippines while at the same time running a 24/7 crowd-funding campaign.

I would say the biggest mistake I made during my campaign was not accounting for the fact that the funds being raised were in USD, not CAD, and that there would be additional wire transfer and conversion costs on top of IndieGoGo’s interest. Another flaw was my lack of updates. If I were to run this campaign today, I would set a higher goal, bring on board a team and be more consistent with social media and updates.

Which brings me now to the campaign I am running today.

Right now I’m producing a short comedy called WEEKEND WARRIOR, directed by Lyndon Casey. Before we started the campaign, I identified my biggest assets. We have assembled an experienced team with strong resumes; the director’s last short film [Captain Coulier (space explorer)] premiered at Sundance 2009; and one of our actors, Dillon Casey, has 20,000 followers on Twitter. Taking all of these into consideration, we decided to set a goal of $15,000, which we are still actively fundraising.

One major advantage we have is being able to tap into already existing mailing lists and social media followers from all of our previous films. Each member of the team is building on their already-existing networks as we move along and we will continue to build on and engage our audiences all the way into production, through to distribution. We’re now creating weekly skits or update videos and actively seeking out media coverage and guest blog opportunities such as this one to keep up momentum.

One important thing we were really missing was a graphic designer on the team. Our most popular perk to date is the only one that has a picture. I realized people are probably not going to be interested in purchasing a tote if they have no idea what it looks like. So to remedy this mid-campaign, we paid a graphic designer to create a tote that people would want regardless of whether it was supporting our film or not. That’s one very important thing remember –assess your campaign along the way to evaluate what is and is not working. Change what you can.

Regardless of the fact that I’ve already run one successful crowd-funding campaign, we’re still finding this one challenging. Perhaps it’s timing – it’s Movember, a typhoon just hit the Philippines, and people are saving for Christmas. Or maybe this kind of film just isn’t for everyone. Whatever it is, we’re confident we’ll be able to overcome it if we continue pushing the project out to wider networks. We’ve got an audience out there and we’re going to find them!

Shasha Nakhai is a filmmaker based in Toronto, Canada with Compy Films. Her award-winning short films have screened at festivals worldwide including the Hot Docs, DC Shorts, LA Shorts, Atlanta, and Aljazeera Film Festivals. Most notably, The Sugar Bowl won Best Film and Best Documentary at the Aesthetica Film Festival, the WIFT-T Award at the Toronto Reel Asian International Film Festival, and was nominated for the Aljazeera Film Festival’s Gold Award. The Sugar Bowl and Joe recently aired in the United States and Europe on ShortsTV and will be released on iTunes later this year.

Sheri Candler November 18th, 2013

Posted In: crowdfunding

Tags: Canada, Captain Coulier, Compy Films, crowdfunding, Dillon Casey, funding goal, indiegogo, Lyndon Casey, Shasha Nakhai, The Sugar Bowl, Toronto, Weekend Warrior

By Sheri Candler

In the continuation of our look at recent cross platform/transmedia projects, this case study will be particularly relevant to those working with low budgets and ambitious plans. Writer/director Jay Ferguson’s initial inspiration for Guidestones came from his late father’s fascination with serialized shorts. Growing up in the thirties and forties, Ferguson’s father went to the cinema and was ‘hooked’ on serialized shorts where bad guys tie distressed maidens to the train tracks and such. Ferguson thought that the internet would be an ideal place to try to recreate that experience for this century.

Again, thanks to Storycode.org for providing the video presentation (found at the bottom of this post) from which these notes were culled.

Jay Ferguson, writer/director, 3 o’clock TV

Synopsis

Two journalism students, investigating an unsolved murder, uncover a global conspiracy centered around the mystery of The Georgia GUIDESTONES, an enigmatic monument nestled in a farmer’s field in rural Georgia and inscribed with directions for rebuilding civilization after the apocalypse. The story is based on a real monument and on the real account of a Toronto woman’s experiences.

GUIDESTONES uses elements of transmedia and ARG storytelling to take viewers on a thrilling chase that crosses two continents and three countries in search of the truth. The project uses a hybrid mix of traditional narrative and formal and non-formal documentary styles. Shot vérité style in Canada, the USA and India, the series moves seamlessly between the real world and the ﬁctional account of how a young woman named Sandy stumbled upon a murder mystery.

Three minute episodes, 50 in total so far, with audience participation elements.

Intent:

Ferguson wanted to tell stories by professional storytellers that would guide the audience an online and offline experience. He observed that, though audiences wanted to participate in the story somehow, no one wants to pay for online content. Also, how to keep audiences coming back? Too many webseries start out with the first few episodes being ok then die with audience numbers. Ferguson and his team have endeavored to keep up a fast paced, engaging story that pushes the audience to continue the journey.

Funding:

A mix of self funded, Canadian Independent Production Fund, some matching grants from the Ontario Media Development Council , sponsorship from Samsung, Carbon Clothing, Major League Baseball/Toronto Bluejays, Pizza Pizza (Canadian Domino’s). The online platforms (Hulu, Youtube) did not put in any money. The total budget is around $300,000 CAD. Estimate to reproduce at market value would be $1 million.

Revenue streams:

Product integration, merchandise/music/ringtones, rev share from Hulu. Recently launched on iTunes and considering a DVD to sell.

Audience demographic:

While there were certain demographics in mind, the production recognized that different audiences will want to interact with the series, so different ways to view the project were developed. In the Push version, one can sign up for the show and have the episodes delivered via e-mail to experience in ‘real time’ as the characters are exploring the mystery. The Linear version is for those who want to be more passive and treat it like a traditional serialized show.

Background of the team:

Jay Ferguson is an award-winning filmmaker who has contributed as a writer, director, producer and cinematographer to over 15 feature films. His work with institutions such as The National Film Board of Canada has garnered him several awards, including the top cinematography award at the Atlantic Film Festival (Animals, 2005) and from the Canadian Society of Cinematographers (Inside Time, 2008). He was nominated for a Gemini Award in 2005.

Jonas Diamond is the CEO of iThentic, joining the team in the fall of 2008. Jonas is producer of the award-winning animated series Odd Job Jack (52×30). The series received a Gemini, CFTPA Indie, Banff Rockie and Canada New Media Award for Best Cross Platform Project. Additional Accolades for Odd Job Jack include a nomination for Best Interactive Program (2006) and Best Animated Show (2005) at the Banff Rockie Awards, second prize for Best Interactive Design (2006) at Vidfest, Best Convergent Project by the Banff Institute as well as multiple Gemini and Canadian Comedy Award nominations. Jonasʼ producer credits includes Odd Job Jack, Hotbox and Bigfoot for The Comedy Network / CTV, Pillars of Freedom for TVO, Turbo Dogs for CBC / NBC, The Dating Guy, skatoony, Sons of Butcher and the upcoming Geofreakz MORPG for Teletoon, The World of Bruce McCall, and the interactive storyteller Legends of Me as well as many other projects for various platforms.

Actress Supinder Wraich plays Sandy in GUIDESTONES

Development phase:

It took 3 years from conception to launch.

Thinking through each platform:

50 webisodes were shot and edited for use as video links, the main storyline.

50 different websites were needed to house the clues for each webisode.

Content was hidden online for viewers to research the clues given during the webisodes.

One of the really hard things was creating 50 story arcs. Each episode is on average 3 minutes long and it is difficult to find an interesting opening, build the story and then a climax to lead into the next episode in such a short space of time. For feature films, you may only have to do one or two of those, but 50 is a lot. The interactivity was very difficult to make happen…very time consuming.

Production workflow:

The production used a very small crew and shot with a Canon 7d digital SLR in order to have flexibility and adaptability when on location. It allowed them to get into places that you regularly would not be allowed to shoot. In India, there were some places that do not regularly allow filming, but they were able to shoot some scenes in a few minutes and not bother anybody.

8 months in production, with 8-10 hour days

Location shooting: 3-4 weeks Toronto, 1 week in Georgia, 1 week in India

Post production meant bringing together all the elements of web and film. Before locking an episode, online properties needed to be created and sites linked to other sites so that the minute it was live, everything was in place for the viewer to experience.

Digital team included:

A graphic designer

Website builder

1 person to buy and manage urls

people to develop online presences on Linkedin and MySpace

2 editors full time

2-3 editors part time

a media manager

effects supervisor

effects editor

Brad Sears who designed the Push system and email system.

Deployment strategy

They launched the “push” system in February 2012. The viewers sign up via email address on their website to follow the episodes. Links are emailed to them with the episodes. Emails are timed to coincide with the happenings of the characters (if something happens at 9am, the email is sent at 9am). It takes the viewer a month to experience the whole thing and it is evergreen which means anyone can start it whenever they like. There is no “starting” and “ending” period.

After launch, the team received a lot of feedback from viewers. High schoolers in particular were impressed that they could Google things they had seen in the show, and something was actually there online. Also found that high schoolers do NOT use email like adults do. They communicate more via Facebook. Production team then modified the “push” system to run on Facebook.

For older people, they complained of too much email (50 episodes plus supplemental info). Some complained not enough episodes being released fast enough. They modified their release pattern/experience. Now viewers can choose to experience via Facebook, email or in a linear version where they just watch the episodes on their own time instead of following along with the characters. The linear version is on Hulu and on iTunes.

Building the Audience

Ferguson concedes that not enough money has been spent on publicity. Largely marketing has been a mix of public speaking, interviews in publications on the process, word of mouth by the viewers with a tshirt promotion for those who bring in 5 viewers. Brand sponsors are doing some of the promotion, particularly Pizza Pizza who play a 30 second ad for Guidestones in each of their stores across Canada. They are hoping that being on Hulu will help garner a larger audience for the project due to its large amount of traffic. Both Pizza Pizza and Samsung have done prize promotions on their Facebook pages for the show.

Achievements

-The clue finding is actually going very well. People really love it and get excited looking for the content. The first season really taught lessons in how to create on-line interactivity…now the team wants to take it further and have many ideas on how to get even more interactive.

-Through connections gain on other projects, the team was able to broker an agreement with Hulu to host the series and have an advertising revenue share.

-The series is now selling on iTunes in the TV show section. The whole season download is priced at $9.99 or one can buy them per episode for $1.99.

-The acting is critical to the storytelling and the believability of any story. Supinder Wraich (Sandy) and Dan Fox (Trevor) have a real honesty that is hard to find in actors. Both can act really well directly to camera because they are able to empathize with the characters and that brings this very genuine quality that audiences respond to, it is very hard to fake that emotion without the audience feeling it. Ferguson’s tip in casting is that when watching the actor closely, don’t worry too much about the words or the actor’s look necessarily, look into the eyes, see if there is a true belief in there. If they believe it, so will the audience.

Challenges

-To the conventional viewer, the non-totally immersed viewer, the Push system adds up if they are not able to get to the emails often enough and that became frustrating for some people who didn’t realize there was a more linear way to watch.

-The team was surprised that the South Asian community has not taken to the series yet as the “Sandy” character is a great character for the South Asian community. The series still struggles to get any real traction there.

-Promoting the show for a bigger audience. Most of the limited funds had to go into production. This is the classic conundrum for lower budget productions…all your money goes into making the thing and none into promoting it.[editor’s note: A word to the wise, budget in significant money for a publicist (traditional and one geared toward reaching fans directly), online advertising, video seeding, promotions, Facebook promoted posts, etc].

– Post-production has been about a year long with four working on it full-time and six or seven people working on it part-time, unlike editing a 120 minutes of content which can be done in a few months. Every single step of the way requires so many elements – a ringtone, a song, a site to house that audio, a site to house a different type of clue that has to be searchable only in a certain manner… all these things are endless and each has to be built because there is no preexisting system.

-The only way they’ve been able to do this on a low budget is that the studio where they work [for day job projects] has audio people, graphic designers, visual effects artists, people who can build apps, all in-house. While they set out with a specific road map and 60 to 65% of that might have remained the same, about 40% has definitely had to change in post-production because they found certain approaches don’t work and when one things is changed, all the elements have to be adjusted since everything is built together. Everyone on the team understands that they’re trying to prove a point with this, build a new model, but it is really hard to do unless you have infrastructure behind you. At one point, Ferguson thought if grant money and sponsorship money didn’t come in, he would still try to do this on his own, but he now concedes this was a ridiculous notion! “It would have taken me 15 years to do and I wouldn’t even have the skills to do most of it.”

A huge thanks to Jay Ferguson for sharing his details for the benefit of all who are interested in these new forms of storytelling. Below, please find his presentation

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Crowdfunding in Canada

Running more than one crowdfunding campaign

Transmedia case study-Guidestones