Crowdfunding changed the way we think and execute on hardware ideas. Nowadays anyone can kick off a Kickstarter campaign with enough Facebook friends, a solid CAD design and a seductive video. But for those of us who went through it and have been tracking the winners and losers of Crowdfunding, we know that there’s a lot more that meets the eye.
Meet NudeAudio. One of the best Kickstarter campaigns ever ran. Why? Not just because of the substantial amount raised, but more so because of the impressive company that launched it.
I have researched many successful and failed campaigns over the years. I even launched two on my own right (one failed and one beat its target over 200 percent). I’ve also mapped out the patterns that make or break the only key performance indicator that really matters: shipping the product you promised on time. As such, I believe that NudeAudio is the best practice for all aspiring hardware geeks planning to kickoff a successful Kickstarter campaign.
Peter Riering-Czekalla and Tom Dudderidge who lead NudeAudio nailed it:
1. They launched a product, not a company. Launching a complex consumer electronics company on Kickstarter is really hard. For starters, the money you raise is hardly enough to cover your costs, since most Kickstarter campaigns ship products with barely any margins or leave room for errors. And there will be errors. Establishing robust supply chains, figuring out manufacturing partners (which will change if your project explodes), passing regulatory requirements and logistics setup takes an average of six months. NudeAudio didn’t need to do any of this and instead they will be using their established foundation as an existing consumer electronics company. After all, the company already built great products and learned how to ship in 40 plus countries. They’re just using Kickstarter to scale, not start their business.
2. They kicked-off a marketing campaign, not a sales channel. Kickstarter is a great marketing platform and NudeAudio harnessed it to orchestrate a killer product launch. They didn’t need to launch their company; they only wanted to launch their product (and at the end, they achieved both.) This amounts to tens of thousands of dollars in free, unbiased, promotional advertisement. In fact, you can’t buy this kind of advertisement, you can only earn it, and Kickstarter is absolutely the best media platform for it.
3. They offered 3000 early bird discounts, almost 40% of total units. Everybody loves a sweet deal, especially the one that makes you feel special. And when in limited supply, there is a rush to get in before it’s too late. Considering that Kickstarter campaigns have the “8 hours hockey stick rule” to get the much desired spike during the first day, NudeAudio did it right. They offered a discounted deal to create a scarcity and swell in demand, but without limiting units.
4. They had a long term vision, and they secured a 10,000 unit build before the campaign. Kickstarter should not be the beginning nor the end of building hardware companies. If you are a total newbie, Kickstarter might seem like a great option, but it may actually create a lot of problems down the road when you face an order explosion you can’t fulfill. It is also not an end game because life after Kickstarter is more critical to your survival beyond the initial excitement. NudeAudio is doing it at an optimal point. They had life before Kickstarter, and will have life after. They even secured parts and manufacturing partners who were ready to build 10,000 units, rain or shine.
5. They are having fun because they know they are going to ship. There is a very terrifying moment right as final supporters back your campaign and a few hours are left before the clock stops ticking. Slight panic ensues as you realize that real deadlines and expectations have been created, some above what you can actually deliver. Building hardware is full of problems and unknown obstacles and the end of your campaign is the beginning of a difficult path. In fact, this is why around 80% of Kickstarter projects are late as many are off budget, scope and quality. The NudeAudio guys did their homework and they’ve having fun, every step of the way. If you learn from them, you should too.
Did I support this project? You bet I did. Not only because I really like these guys, but also because I know that I am getting a quality product I want and need on time and target.