CYBECOM Pty Ltd - Ecommerce Architects - Web Developers - Brisbane

Posts Tagged ‘ecommerce’

Just What Is Crowdfunding?

crowd funding

crowd funding

Crowd funding

Crowdfunding is basically a way to raise funds for a project using a group of individuals as opposed to a more traditional venture capitalist arrangement. Instead of one person or a few people funding your project with a lot of money, a lot of individuals fund your project with a small amount of money. The crowd part of the term comes from the fact that a ‘group of individuals’ are each giving you a small amount of money.

The concept is great because it allows lots of people to become financial supporters of great ideas without spending lots of money.

It differs slightly from micro-financing because crowdfunders don’t usually get their money back. Instead, they purchase a ‘pledge’ which generally entitles them to something if the project is successful.

I hear you then say, “What constitutes a project?” and “How does it become successful?”.

Most crowdfunding platforms have rules around valid projects and many such platforms were spawned out of the creative arts or new invention areas where it has traditionally been hard to get funding. Let’s assume your project fits the rules of the crowdfunding platform (maybe you have invented a new gadget that does something special) and you post a project. Generally, you post the project for a period of time and let’s say that is 60 days and you set a target dollar value to reach. You then have 60 days to promote your project to would-be funders (and many project operators are clever at this and don’t just assume the crowdfunding platform will do the work for them – they work their butts off through social media, etc. to seek out funders).   A project is deemed successful if at the end of  the time period (in our example 60 days) they have raised the funds they wanted.  At this point, the crowdfunding platform will charge all those who purchased pledges, the appropriate amount of the pledge.  It is then up to the entity whose project it is to complete their project and send out pledges. Some pledges are as simple as a postcard in the mail while others might be an actual product (one of the ‘gadgets’ in our example).  The crowdfunding platform makes their money by taking a percentage of the value of the funded project.

Because the web has access to many, many users (the crowd), it has made the concept of crowdfunding much more accessible.

One of the first entities to try crowdfunding on the web was Kickstarter who are based in the US.  At the time of writing this, they said on their website “Since our launch on April 28, 2009, over $450 million has been pledged by more than 3 million people, funding more than 35,000 creative projects.”  That is phenomenal.  More about how Kickstarter specifically works can be found from that same page.  At the moment, they are saying you need to be a US or UK resident in order to use Kickstarter but this will be changing constantly so check for up-to-date information on that.

GoFundMe is another crowdfunding platform. Their rules are more open and allow people to raise funds for charity and personal reasons. In fact, their emphasis appears more related to fundraising as opposed to project capital raising.  They say, “Supported countries and currencies include: United States of America ($USD), United Kingdom (£GBP), Canada ($CAD), Australia ($AUD), and European Union countries that use the Euro as their official currency (€EUR).”

In Australia, Pozible was one of the first web-based crowdfunding platforms. Rick Chen and Alan Crabbe are Pozible’s Directors and Co-Founders.  I went to a face-to-face forum here in Brisbane last year and it was clear that the people behind Pozible are passionate in helping people have successful projects. They showed particular interest in creative industries projects which is not unusual given Pozible was borne out a need for a struggling artist  to fulful their dream financially.

You no doubt have lots of other questions such as “How do you know if you will receive your pledge?”, etc. Each of the platforms have different ways of handling this so you need to visit their websites and read up. But remember, most of the time it is not the pledge that drives the crowdfunder but rather the altruistic feeling they get from helping someone turn a good idea into reality.

My only concern is how long will the rush last given crowdfunder fatigue must eventually set in?

Facebook’s Mobile Ads For Apps

Facebook Logo

Facebook Logo

Facebook

Back on 8 August 2012, Facebook announced it was beta testing its new mobile ads for apps of which the repercussions are only just starting to filter out.  In their developer blog post, they said that developers of apps can “grow their business with an ad unit that helps them reach and reengage their users.”1  To explain it, Kim-Mai Cutler of Techcrunch said “These ads send users to the iOS app store, where they can download promoted apps. They’re going to be an important prong of Facebook mobile monetization efforts… Why? Facebook can’t derive fees or virtual currency revenue from mobile apps, because they exist on platforms operated by the company’s frenemies Google and Apple. As users have migrated to mobile devices, Facebook’s payments revenues has stalled because of this…. So mobile ads are going to be the key way that the company earns revenue from its developer ecosystem on mobile devices.”2

Back in August they were seeking out beta testers and right now, the results of that testing is coming in and it is all very positive.   Jim Edwards of Business Insider said, “Fab.com CEO Jason Goldberg, whose company tested the ad unit with Fab’s shopping app, says it was “Five times more effective than any other mobile download channel that we’ve used.” Fab is one of Facebook’s biggest advertisers.”3

At the fourth quarter briefing today, Facebook’s COO Sheryl Sandberg, announced that 20% of the top 100 grossing iOS apps are using Facebook’s new mobile app install ads. It turns out that the ads don’t just get good click-throughs but many people download the resulting apps. History shows that once a user has an app on their mobile device, they’ll use it frequently. So how come the ads are so effective? One thing that Facebook has that many other ad networks don’t is information. They know all sorts of data about their logged in users which means that the ads are highly targetted. And then the flip side is that Facebook offer developers  a way to monitor their insights through a simple flow on the App Dashboard. So it’s a win-win value-add and finally it gives Facebook a way of earning money from the increasingly lucrative area of mobile devices.

Even if the general ecommerce market is still catching on, savvy developers and marketers quickly picked up on this.  Back in August, Nick Ellison; CEO of NickEllison.Net said, “Wow this is huge! Smooth move Facebook.” and Kasim Zorlu, Marketing Director at Bee Square said, “We were waiting for this, a piece of awesomeness :)”.

On a separate point, for the first time in the company’s history, the 4th quarter earnings announcement revealed that during the quarter more people used Facebook on mobile devices than from traditional web devices.  That is particularly poignant when looking to the future.

Acknowledgements

Internet Sales Increasing; January 2013 Update

Online Shopping

Online Shopping

Online Shopping

Purchasing products and services through the Internet is gathering pace and according to the research by PwC and Frost & Sullivan in July 2012, 6.3% of sales in Australia, 7.3% of sales in the US and 10.7% of sales in the UK are done online. 

Further statistics can be seen in PwC and Frost & Sullivan’s Infographic.

Reasons for purchasing online include:

  • eliminate driving
  • no crowds
  • no noise
  • better selection
  • better prices

Reasons for businesses going online include:

  • “avoiding high rental costs (or reducing rental costs) for business premises
  • comparatively low barriers to entry in terms of business establishment costs
  • low barriers to geographic expansion across Australia and overseas
  • reducing the amount of advertising needed to sell products
  • removing the need for intermediaries and associated costs by interacting directly
  • with customers.”1

Acknowledgements:

Electronic Commerce

CYBECOM® is a full-service e-commerce and web development company operating out of Brisbane, Queensland, Australia. We can build websites, iPhone apps, etc. and can help integrate your systems using technology. Whilst some businesses concentrate just on website development or app development or something else, these days it is important to use a full-service company who can help you integrate technology seamlessly and effectively into your business. We will start by taking every business’s fundamental goal – to increase profit – and then work from there.  If you just want a pretty website, we can do that, but we can offer you so much more too.

Given ecommerce is not just about selling products, we define Electronic Commerce as a way of doing business using communication tools such as the Internet, Intranet, Extranet to connect business systems directly to customers, suppliers, employees or any other related parties.

CYBECOM’S core competencies include:

  • website and app development;
  • developing web strategies which either replace or complement overall business strategies;
  • project management of Electronic Commerce implementations;
  • the provision of education and training programmes;
  • facilitating vendor liaisons in the areas of electronic commerce;
  • developing web-based promotional and marketing campaigns; and
  • developing business marketing materials including logo design, business cards, word templates, etc.

If you are just looking for a simple website with a system that allows you to easily update it yourself, we can build these from as little as $500.00+GST (very simple five page website using a generic template) through to thousands depending on your needs. Cybecom; for cost effective website design in Brisbane!

If you are interested in our services, don’t hesitate to contact us.

Contact Details

CYBECOM Pty Ltd - Since 1999
ACN: 088 005 967
ABN: 13 088 005 967

PO Box 138
Hamilton QLD 4007
Australia
T 0417 916 529

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