Tag Archives: business and social media

Kickstarter: Coffee Joulies and other ideas

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KICKSTARTER: Obtaining funding via social media

DO you ever get tired of being served coffee that is too piping hot to drink? Or leaving a cup of Joe to cool only to find that it’s gone Luke warm by the time you drink it? Well, soon unsatisfactory coffee drinking will be a thing of the past with the release of Coffee Joulies on the American market this week.

The idea of creating stainless steel heat-retaining coffee beans that keep your hot beverage at the right temperature for longer was brewed up by two young design engineers both named Dave. Like many budding entrepreneurs, Dave and Dave needed a way to fund the manufacturing of their product and turned to the Internet and social­ media to achieve this.

Kickstarter.comIdea light bulb is one of many websites that allows people to post ideas freely and appeal to the online public to pledge small amounts of money towards their project. Creatives are given a set amount of time to raise the funds they need and offer certain rewards to people, depending on the amounts they pledge.

The Coffee Joulies project, for example, was looking for $9 500 (roughly R66 500) to fund the manufacturing and distribution of their product. Amounts that could be pledged ranged from $40 to $500 or more. Returns on investment included being sent free samples of the product once made, getting a unique Joulies mug with “I backed Joulies on Kickstarter” printed on it, or even being sent a Coffee Shop Pack for entrepreneurs who want to sell Joulies themselves.

The Coffee Joulies example is one of many that illustrates the power of the web and social media to kick-start business ideas into existence. The two-man team managed to raise $306 944 (about R2 148 000) and has over 4 800 backers. Project creators also keep 100% ownership and control over their work.

Kickstarter homepage

Kickstarter.com is one of many websites that allows people to post business ideas freely online and appeal to the online public to pledge small amounts of money towards their project

Kickstarter.com is one of many websites that allows people to post business ideas freely online and appeal to the online public to pledge small amounts of money towards their project (image: http://www.kickstarter.com).

The only criterion for Kickstarters is that projects must reach their funding goal before time runs out or no money changes hands. This is done to protect all parties involved. Creators aren’t expected to develop their project without necessary funds, and it allows anyone to test concepts without risk.

Other successful projects include documentary film ideas, iPhone add-ons or accessories, a magnetic vertical garden kit and video game development. Many of these have far exceeded the amounts needed and are over 100% funded. Pledging continues until their initial time frames end. I was also pleased to see a few South African projects on Kickstarter that have surpassed their funding goals.

The creative market for ideas

Websites such as Kickstarter bring to mind other online platforms that also operate within the creative market for ideas. Idea Bounty is one example whereby large corporates post a brief for something they want — such as ideas­ for an advert. Users or creatives are then invited to submit their ideas for that brief. A sizeable bounty is offered­ by the client beforehand which is bestowed upon the person who submits the best idea.

While platforms such Idea Bounty sound all good and dandy, it just goes to show the value of a good, creative idea. This particular website has been known to offer bounties as high as $10 000 (about R70 000), but it’s a no- brainer that the returns on implementing such ideas most likely far exceed what was paid for them.

This comparison makes one feel far more approving of entrepreneurial, self-starting marketing platforms such as Kickstarter. The look and feel and user-friendliness of the website also make it that much more inviting. But you don’t have to take my word for it. If you have a great idea or want to launch a book or make a film and need funding, Kickstarter would be a very good place to start.

Fuseware Social Media Report

SOCIAL MEDIA: And how it is transforming business in South Africa

Fuseware is a Cape Town based social media research company that is currently creating a free social media research survey about the business case for social media in South Africa. They are asking the top influencers in the media and marketing industry for their views regarding this and aggregating all the information into a 100% free Fuseware report.

I was asked to participate in the Fuseware survey but wanted to open it to everyone to participate and offer further suggestions. The six most poignant questions follow with my own responses, but please feel free to contribute and get your chance to be heard! I will pass all comments on to the researcher that contacted me.

1. Fuseware: How is social media changing the business landscape, specifically for South Africa?

In the media industry, social media is the next phase of journalism. Media industries that do not adopt and embrace social media and networking into their production cycles will surely wither and die in the future. Situations where news rooms fight social media to get “the scoop” will never win by virtual of the speed and spread that is offered by services such as Twitter, Blogs and even Facebook. Media organisations need to learn how to use social media themselves in unique ways if they wish to remain a viable source of information.

2. Fuseware: What is the most difficult challenge of social media use in business in South Africa?

I would argue that the biggest challenge for businesses in SA is finding unique ways to make effective use of social media without harassing and bomb-barding social networkers with corporate spam. Simply posting links to any business website on every social media platform, for example, is not effective use of social media and will only irritate people and possibly taint the name of that business or brand.

3. Fuseware: What is your ultimate example of business success in social media?

News websites that have developed social media extensions for their product are proving to be very successful in SA. News24, The Dispatch and The Times are three examples of businesses that have made effective use of social media by offering something of interest and value that was not possible with their print products. Interactivity, commenting platforms, reader feedback, creating web-presence and the use of multimedia are all effective forms of optimising such a business.

4. Fuseware: Which companies in South Africa do you think are doing social media the right way?

The three news corps. mentioned: News24, The Times and The Dispatch. Also gaming and IT websites are showing huge growth in SA – e.g. Take2, and of course the blogging community and more specifically blog aggregators – i.e. Afrigator and MyScoop are making great and effective use of social media in SA. These will continue to grow for a good while yet.

5. Fuseware: How can businesses in SA measure the effectiveness of their social media campaigns?

It depends on the campaign really. Following trends would be a good start, but most social media campaigns can be measured by number of followers / subscribers and the growth of these. Keeping track of website statistics and engaging with their audience(s) is also of utmost importance.

6. Fuseware: How do you envision the usage of social media in SA in 2-3 years?

The internet today is defined as “web 2.0” – i.e. the “social web”. The proliferation of social media websites and services will continue to grow in the next few years and more businesses are likely to adopt social networking into their business models. It’s almost becoming a case of “do-or-die” meaning that if businesses do not create a web-presence within the next 2-3 years while their competitors do, they will risk losing a huge number of customers / clients / readers.

  • If you would like any of your own input sent to the Fuseware team before they put together their social media report, please add it as a comment below.