This episode is absolutely brilliant I just love Ami so much for her candid insights and really breaking down everything from the line item marketing spend to make a campaign like this successful. And if you love this series, let me know! I’m curious if I should do more of these multi-part series to get into the nitty-gritty of how something works.

Something we’ve demonstrated through these three sessions is that this is a very big undertaking, but it’s a super rewarding one. This ability to allow your community and customers to own part of your company has got to be a really big part of your philosophy. Start with why you're doing this: your purpose and intent that’s really ethical. For Ami, this crowdfunding has led to the opportunity to help women build wealth, rather than just lining the pockets of a very few whose values aren’t aligned. Obviously, I love that.

A Little Backstory: Burnout and Breakthroughs

Last time we spoke, Ami was feeling a bit burnt out, sitting at just over $600K raised—definitely in what she calls the “valley of death.” But then came a pivotal moment: a call from Sian, who was beyond thrilled to share that they’d just landed a significant investment from a high-profile investor. Talk about a game changer! With someone influential backing them, Ami realized they could leverage that connection for ads and PR. It’s a mix of luck and solid investment strategy, showing how crucial it is to have a compelling story to tell potential investors.

Ami shared a great reminder: while it’s easy to get bogged down by negativity, it’s essential to focus on the victories. And oh, what a victory this was!

The Numbers Behind the Campaign

Let’s get into the nitty-gritty. Ami emphasizes the importance of understanding financials and comparing your numbers to ensure you’re confident in your strategy. For Pleasant State, their crowdfunding campaign lasted six weeks: three weeks for the expression of interest phase and another three for the actual offer. But they started laying the groundwork much earlier—around six months before launch.

Ami points out that crowdfunding has dropped significantly recently, which means a big financial investment is necessary to stand out. They raised $300K prior to the campaign to cover some initial costs and operations, knowing this wouldn’t be a cheap endeavor.

So, what did that total marketing spend look like? Let’s break it down:

• Total Costs: $135,000 (actually closer to $200,000 when all was said and done)
• Ads: $70,000 (broken down into $54,000 during the expression of interest phase and $16,000 when the offer was live)
• PR: $15,000 (Ami highlights Drew’s contribution as a key investment with impressive ROI)
• Partner Promotions: $6,000 (think influencer marketing!)
• Video Production: $7,000 (great quality video was essential and they repurposed it for ads)
• Photoshoot: $6,000 (styling, hair, makeup—basically everything to look fabulous!)
• Offer Document: $10,000 (a comprehensive 50-page document with all the necessary financials)
• Legal Fees: $12,000 (a top-notch lawyer helped them navigate everything)
• Accounting: $7,500 (keeping everything compliant with two entities)
• Birchal Commission: $63,000 (6% of the total raise, plus a small fixed fee)

All in all, Ami shared that they spent about 14% of their total raise on running the campaign. That’s a serious investment!

Hindsight and Lessons Learned

When Ami reflects on the experience, she candidly shares that there’s definitely room for improvement. For instance, she wouldn’t recommend spending $10,000 on the offer document if it’s not necessary for your specific campaign. Her advice? Be transparent about costs upfront and ensure everyone involved understands their fees.

Through these three episodes, Ami has shown that running a crowdfunding campaign is no small feat. It’s incredibly rewarding, but it’s also a huge undertaking. She emphasizes that the ability to let their community and customers own a part of the company aligns perfectly with their ethical values.

What excites Ami the most is the fact that 77% of their investors were women, and 95-98% of them had never invested before. This opportunity to help women build wealth is a driving force behind her mission. Instead of just lining the pockets of a select few, Ami wants to empower others to join the journey.

While the process was rewarding, it was also relentless and challenging. Ami reflects that without the support of their community, they wouldn’t have made it through the tough times. If you haven’t invested time in nurturing your community over the years, she cautions that crowdfunding might not be the right route for you.

Ami’s journey is a fantastic reminder that with determination, transparency, and a strong support system, anything is possible!

If you’re enjoying this series, please let me know. I’m always curious if you want more deep dives like this one into the nitty-gritty of building a business. Keep hustling, friends!