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NEW SEARCH! Edison Nation is looking for the next great crowdfunding campaign!

magurn's Avataren_staff_badge

Edison Nation launched a new ongoing search for crowdfunding ideas!

As a part of our new partnership with Xspand Products Lab, we're thrilled to share this new search opportunity and commercialization path with our community!

To learn more and share your ideas, please click here!

williamj
Derrick James
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anw4nto's Avatar

Do I need to wait until 2020 to get my idea reviewed ?

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magurn's Avataren_staff_badge

Hi Agung! 

No, this search is ongoing meaning the ideas are going to be reviewed as we receive them. Similar to our All Category search and Consumer Healthcare search. 

Hope this helps to clarify! 

Derrick James
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sgdromms's Avataren_staff_badge

I want to encourage folks to read through the Landing Page for the Crowdfunding Search. There are specific categories that are listed, and this is done with great intent and purpose as those are categories that have historically performed better on crowdfunding sites. Not to say that occasionally a product outside of these has worked, BUT the focus of the effort for crowdfunding campaigns will be on these specific areas of innovation listed.

Would focus submitted concepts in those areas.

Derrick James
Michelle Sartori
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anw4nto's Avatar

Then how could I edit my idea if it already moved to, say it, G3?

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magurn's Avataren_staff_badge

Hi Agung! 

To edit any submission that is active, log into your account, select the idea from the submissions widget on your Dashboard and click Edit. Once you click save after updating, the team will be able to see your edits. You can edit ideas active in any searches until they are in a Stage 7.

Best of luck!

Vee R___
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smallprojects's Avatargold

Which search would be better to submit to -All Category or new Xspand crowdfunding search for a r8 resubmission of food storage product?

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magurn's Avataren_staff_badge

Hi Chase!

How to opt in is up to you. We advise though, to review the search criteria for the crowdfunding search to ensure it is a fit before opting back in.

Derrick James
Kristina Poindexter
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phonepaal's Avatargold

Any further details on how royalties would be shared in a successful crowdfund?  Same numbers as a licensed Sponsored Search?

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sgdromms's Avataren_staff_badge

Rex - The Crowdfunding Innovator Agreement, available on the EN site, details out all aspects of not only the standard Innovator Agreement that community members are used to, but it also includes definitions and information about the crowdfunding path. The avenues of commercialization that are options within Standard Agreement also exist within the Crowdfunding Innovator Agreement, with same terms, and there is language that covers the crowdfunding campaign itself, and any potential revenue that could arise from a campaign. 

Frederick Detwiler
Frederick Detwiler
Mark Bartlett
Kristina Poindexter
Robert Pontius
Derrick James
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magurn's Avataren_staff_badge

Hello to all!

We are going to be updating our FAQs before the end of this week with a link to the crowdfunding agreement as we do with our other Innovator agreements.

For now, you can review the agreement in the final stage of the submission process within the crowdfunding search itself. 

We sincerely appreciate your patience and will advise once the Help page has been updated.

Thank you!

Frederick Detwiler
Frederick Detwiler
Mark Bartlett
Kristina Poindexter
Robert Pontius
Vee R___
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magurn's Avataren_staff_badge

Hi guys!

As promised, the FAQ page has now been updated with new information following our Xspand announcement. 

To learn more, please click here.

Thanks to all for your patience!

Kristina Poindexter
Mark Bartlett
Vee R___
Frederick Detwiler
Frederick Detwiler
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gadgetmanken's Avatargold

If you are an insider can an idea previously submitted, and rejected be opted in the Crowdfunding Search for free?  Also when a crowdfund idea is successful does EN, and Xspand, own the idea, and the innovator has no control and just gets 7 1/2 % royalty?

Robert Pontius
Yolanda Jackson
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magurn's Avataren_staff_badge

Hi Kenneth! If you feel your idea is a fit for the crowdfunding search, you’re welcome to opt it in. It can be done for free as an Insider.  

As outlined in the crowdfunding agreement, if an idea is selected for a crowdfunding campaign and that campaign is successful, the inventor will receive 7.5% of adjusted campaign sales (revenues from the campaign). 

After the campaign is run there are two potential paths - direct manufacture from Xspand or standard licensing. Direct manufacture would result in 7.5% revenue of adjusted net sales. A licensing deal is our standard 50/50 split. 

Hope this clarifies!

Chase Fisher
Robert Pontius
williamj
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rpontius's Avatarg8_badge

I just made my first submission to the crowdfunding search!

Karen C Adams
Vee R___
Sylvain Cardinal
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scardinal3's Avatargold

Robert, you are a machine!....that's a positive comment ;)

Robert Pontius
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rpontius's Avatarg8_badge

Thanks Sylvain. I should say that I didn't create that submission from a standing start - it wasn't a brand new idea - in fact it was something I came up with back in 2008-2011 which I just revived because I saw a different solution to the same problem become a massive Kickstarter success within the last year.

Karen C Adams
Michelle Sartori
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vtac's Avatargold

Gotta lv EN. I just saved myself $ by becoming an insider and submitting my idea for free to the crowdfunding campaign.

I forgot we could opt in. Awesome.

Derrick James
Kristina Poindexter
Michelle Sartori
Robert Pontius
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rpontius's Avatarg8_badge

Vee R - now that you're an insider you also get access to Room 5 - this week's is open for 45 more minutes from now!

Kristina Poindexter
Michelle Sartori
Vee R___
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psinventor's Avatargold

Derrick James
williamj
Michelle Sartori
Kathy Day
Robert Pontius
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gadgetmanken's Avatargold

.

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gadgetmanken's Avatargold

How does En and Xspand protect the crowdfunding campaigns, considering you are now making things public in order to get funding? Are provisional patents filed first, or non-provisional patents? What happens if the crowdfunding minimum isn’t reached? What then?

P.S. I like then Moonlite product campaign and am amazed at how well its funded.

williamj
Robert Pontius
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rpontius's Avatarg8_badge

Excellent questions @Kenneth.

And I *love* "Polygons" - it's like useful art/sculpture.

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kristina.poindexter's Avataren_staff_badge

Hi Kenneth! 

If an idea is selected for crowdfunding, Edison Nation will make sure that proper IP has been filed if it is not already, to ensure it is protected.

If the campaign does not meet the goal or is not successful, the EN team will review and if they feel they can no longer pursue commercialization, will return the IP back to the inventor so they can pursue further.

Hope this clarifies!

Michelle Sartori
Michelle Sartori
Derrick James
Robert Pontius
Chase Fisher
williamj
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jimsage's Avatargold

I backed Polygons back when the campaign was live, unfortunately the company is having trouble getting the product produced. Many unhappy backers (see comments on their kickstarter page), but starting a new product is hard and backing a product does not always guarantee the company will be on time for delivery. Many people mistakenly think of Kickstarter as an online store. I have backed over 15 products and all but 3 have been produced and most were past there deadline. Still hoping my Polygon will get made, it was an amazing campaign to watch. 

Just a little FYI from Jimmy!

williamj
Michelle Sartori
Michelle Sartori
Robert Pontius
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smallprojects's Avatargold

Jim, these are some valid points you are talking about, I also as well used to view crowdfunding sites like Kickstarter as kind of an online store that I could pay now and get it later, but yes, sometimes later never comes. Thanks for sharing.

Robert Pontius
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smallprojects's Avatargold

I have done a bit of reading over the last week about crowdfunding and I am understanding it better but left with a few questions for Edison Nation on potential strategy towards the campaign. 

I have read that it is usually better in most cases to have a shorter 30 days or less funding campaign and typically amounts of $10,000 or less are more likely to be funded. Another contributing factor is how many people see the campaign being a featured/highlighted campaign on a site such as Kickstarter and of course how many people see it through social media and such.

I realize that all product ideas that Edison Nation will promote are likely to require different strategies for the campaign such as: cost to make, size of product, complexity, costs to ship, etc. but can E.N. give any more specific information at this point on what maybe the typical campaign might look like?

Such as will there be a relatively low standard (such as $10-20-30,000) to get a typical campaign funded and going or might the standard be higher such as $100,000+? 

What might the typical time frame look like?

I have noticed many of the videos for marketing purposes on sites such as Kickstarter are typically very high quality and typically have a real working prototype of sorts, how might this be addressed in an Edison Nation campaign if one submits a low substance type of submission such as black and white drawing on paper simply illustrating a potential concept?

Thank you for any information that can be shared. 

Robert Pontius
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rpontius's Avatarg8_badge

Great questions Chase. I was also wondering about the questions you asked in that last paragraph re: prototyping and videos.

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magurn's Avataren_staff_badge

Hi Chase!

I'll answer your last question first.

For all ideas that are selected for crowdfunding campaigns, Edison Nation will work with our partners and handle all creative aspects of the campaign, including the video. We are not requiring any of our innovators to provide campaign-quality videos to submit.

Regarding the parameters of what a typical crowdfunding campaign will look like, the monetary goal and timing will vary depending on the product. What I can share is that Enventys Partners are experts in the crowdfunding arena and apply metrics to each campaign they work with to ensure the best chance of success. 

Hope this helps!

Chase Fisher
Robert Pontius
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jimsage's Avatargold

Couple other things I have learned.

1) No real formula for what amount of ask works. I backed "Fidget Cube" who asked for $15,000 and when the campaign ended it was well over $1 million in backer contribution.

I worked on a campaign that asked for $30 thousand and we got over $80,000.

I had a childrens book and asked for $1,200 and had trouble getting over the finish line, UGGGGH!

3) I really appreciate the new companies help because one thing that Indiegogo and Kickstarter require is a working prototype of your product. This was a hard lesson to learn because I had my one campaign all ready to launch and I was rejected because of too many 3D images and animations of my product. Crowdfunding sites believe that 3D models or renderings fool people into believing that your product is closer to finished than it is.

4) Tooling is the biggest hurdle so large products with expensive molds require a higher funding goal. My biggest challenge was finding a trusted overseas manufacturer that would even quote me because of my small company size. Getting a mold for a product I was working on made in the US was $200,000 and in China I was quoted $30,000. This is why I am so happy about Xspand.

5) Most campaigns that run into trouble meeting the shipping to Backers deadline, find out that they are the bottom of the priority list with the manufacturer and the time of year is really important (like pre-Christmas).

6) Another big help Xspand could give a campaign is Shipping logistics, so many campaigns have trouble getting great shipping rates because they are new or very small. A lot of campaigns have to limit sales to one market, like "US only" because of high shipping costs in other countries. It is so much better if the whole globe can help fund your campaign.

7) One last thing I have found is that many successful campaigns run on both Kickstarter and Indiegogo at the same time. Imagine trying to stay on top of that much customer service.

Anyway Xspand is a blessing  IMO and can help us avoid so many problems.

Chase Fisher
Jim Siegrist
Robert Pontius
Michelle Sartori
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rpontius's Avatarg8_badge

Well said, Jim. Somewhere I saw that Xspand has very advantageous pre-negotiated shipping rates with all the major carriers, which goes to your point 6. With the ability to produce 20 million units per year and with international production facilities and worldwide distribution their economies of scale must be huge.

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rpontius's Avatarg8_badge

To understand the kinds of crowdfunding projects possible it's probably also helpful for us to review the portfolio of crowdfunding projects Enventys Partners (and Command Partners) have completed:

https://enventyspartners.com/work/crowdfunding-...

Michelle Sartori
Chase Fisher
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jimsage's Avatargold

Thanks Robert,

I really don't think anyone knows for sure if a Campaign will or not but what I do know is a campaign that does work really makes it easier to get meetings with buyers.

It gives the buyer a sense that it is already market tested.

One other huge advantage of a successful campaign is the possibility of going viral.

The campaign I worker on that hit $90,000 was picked up by Mashable and others to the tune of 100 million views, That's when it gets really fun and you better have a lot of products coming into the warehouse. We did 35,000 units over Thanksgiving weekend.

Michelle Sartori
Chase Fisher
Robert Pontius
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smallprojects's Avatargold

Thanks Jim and Robert for your insight into crowdfunding. 

I was looking for Enventys past crowdfunding page as well so the link provided was excellent. It appears Enventys also merged with another company called Command Partners not too long ago as well. I didn't realize they were behind a few of the products that I have seen before such as the Rinse Kit that was on Shark Tank and Bunch o Balloons. I was at the local mall the other day and saw the Bunch o Balloons, it looked really fun!

Michelle Sartori
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keeztan's Avatargold

There is a lot of great information here, thanks guys for both the questions and answers.

Michelle Sartori
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jimsage's Avatargold

Ok, one more Crowdfunding insight from me. Many successful campaigns are hits almost before they launch.

People who are really good at social media can promote their campaign before the campaign even launches. This is actually very critical for every campaign. If you can hit the deck running with a lot of backers when your campaign launches your product will climb up to the front splash page of Kickstarter or Indiegogo, In other words when you surf over to a crowdfunding site there are several projects on the first page you land on, these projects are there because they are popular (lots of backers or lots of views). 

In this instant gratification world people don't spend a lot of time going page to page looking through the hundreds of projects on a crowdfunding site. So the closer to the top page the better chance you have to catch more backers.

I betting Xspand and Enventys are extremely good at this.

Chase Fisher
Nicole Norris
Michelle Sartori
Robert Pontius
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magurn's Avataren_staff_badge

Hi guys!

Awesome insights! We're going to be culling together some additional information on "crowdfunding" for our next "InvENting 101" so stay tuned!

And Jim, yes, they are very good at it. ;)

Chase Fisher
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