Pushing Papers
Outline/Timeline of a proposed NORML crowd funder
As a consumer advocacy organization, NORML has a tenuous relationship with the licensed cannabis industry. While some believe purchasers and sellers must be fundamentally in agreement regarding their transactions—each has what the other wants—the principle of competition means each is attempting to gain more for themselves than they give up. They are expected to do this whenever possible, which has recently led to dynamic pricing, which is an automated system where sellers use in-real-time information to set the highest price tolerable for any particular consumer.
With dynamic pricing, not only does the price of every cold beverage in the store increase when the outside temperature reaches 80 degrees, customer loyalty programs that have offered discounts can be algorithmically flipped to predict when particular shoppers may have more cash coaxed from them for their regular purchases.
Consumerism has been a significant driver of post-WWII markets, some theorists have called it our “second job,” for the amount of time and effort dedicated to it. Surely, without purchase, profit from production cannot be realized—capitalism is a demand-constrained economy. Manufacturing most consumer goods also requires manufacturing a demand for those goods, typically by brand name.
The role of a consumer advocacy organization is in many ways the opposite of an industry advocacy organization.
The natural fit for a cannabis consumer advocacy organization would be to brand non-cannabis products that consumers need: Information (especially while under total prohibition), sources of flame, and consumption devices, especially. Rolling papers fit the bill nicely. About ten years ago, the NORML board commissioned the manufacture of NORML-branded rolling papers, in what would become two different designs.
Here is the proposal I put forth, regarding a crowd funding campaign that never came to be:
I. Client Needs:
1. Raise money to pay for first-issue NORML-labeled hemp rolling papers. The price-per unit drops to near $1 at 2,500 packs. There is a significant volume discount at 10,000 packs for $5000 (.50/pack) and 50,000 packs for $6500.
2. Promote the NORML brand, especially in states with legal adult and medicinal cannabis markets, beyond “legalize marijuana”.
II. Crowd funder:
Determine funding target $ amount.
Choose crowd funder platform.
Produce mock-ups of the rolling papers for photos and video.
Create reward tiers, photographs of rewards.
Script/Shoot video (~60 seconds).
Produce announcements for email, blog, social media.
Determine date final product will be available.
Fulfillment plan (S&H, due dates).
The crowd funder may be both secured (if a certain minimum is not achieved, then contributions are credited to donors) and capped (total number of rewards that need be fulfilled).
The following applies to a $5000 net goal.
Reward Tiers
Roller $15....Ten packs of first-issue, collector’s item NORML rolling papers! Save them, use them, give them away! Not Available for shipping to the following states/territories:____________
(Note: A per-pack cost that is below retail for other brands, in many areas)
Pinner $15....NORML is working to end laws that don’t allow people to buy rolling papers. For $15 we will send you a NORML sticker and a gold leaf pin.
Phatty $50....Ten packs of first-issue, collector’s item NORML rolling papers, NORML membership, and a classic t-shirt!
Bomber $50....A NORML sticker, a gold leaf pin, NORML membership, and a classic t-shirt.
Spliff $100....FIFTY packs of first-issue, collector’s item NORML rolling papers, NORML sticker, and a NORML membership.
“The Chong” $200....ONE HUNDRED packs of NORML rolling papers, NORML stickers, a gold leaf pin, NORML membership, and a classic t-shirt.
Note that the reward tiers need high-resolution photos. We can put “X 10” or “X 50” next to the photo of the one mock-up pack, to indicate volume.
III. Achieving Targets:
To reach $5,000, while ensuring fulfillment does not become overwhelming:
Limit Roller/Pinner to 500 maximum contributors.
Limit Phatty/Bomber to 150 maximum contributors.
Limit Spliff to 50 maximum contributors.
Limit The Chong to 25 maximum contributors
Site Fees
Most crowdfunding sites charge a transaction commission of 6 - 8%, with lower commissions typically charging an additional fee-per-transaction. Assuming both a high 8% commission, or $1.20 per $15 contribution and a $0.30 fee per transaction, NORML will receive $13.50.
Minimum Contributions
To net $5,000 after commissions & fees, we would require 371 contributors at the $15 level. With 500 contributors at $15, NORML would net $6,750, after commissions.
Remaining Inventory
10,000 pack minus 3,710 would leave NORML a surplus of 6,290 packs that we can distribute to chapters, offer as donation incentives, or pass out like business cards. They could also be re-sold to online distributors such as rollingpaperdepot.com. Should there be 500 contributors, NORML would retain 5,000 packs.
$15 Contribution Fulfillment
Items:
10 packs NORML papers $5.00
Thank you note (1⁄2 page) $0.05
$5.05
Shipping:
Staples #0 Padded Mailer, 5 7⁄8” x 8 3⁄4” $0.34
Labels $0.15
US Postage (3 oz.) $ 1.15
$1.64
Cost per $15 donation: $6.69
$13.50 - $6.69 = $6.81 net donation to NORML per $15 contribution.
371X $6.81 = $2,926.50
500 X $6.81 = $3,405.00
Maximum Participation Results
(Calculated using rolling paper reward tiers, alone.)
500 $15 contributions ($13.50 net) = $6,750.00
Fulfillment -$3,345.00
Net $3,405.00
50 $100 contributions ($91.75 net) = $4,587.50
Fulfillment (est. $35.00) -$2,837.50
Net $1,750.00
25 $200 contributions ($183.75 net) = $4,593.75
Fulfillment (est. $75.00) -$2,718.75
Net $1,875.00
Should the crowd funder reach maximum participation, all 10,000 packs of NORML rolling papers will be claimed by contributors. NORML will have approximately $7,000 in cash in return, plus new contacts, members, and 10,000 packs of papers putting our logo and words in front of many thousands more marijuana smokers, right as they are about to use marijuana.
IV. Strategy/Timeline:
Crowdfunding sites are crowded spaces. People think that if they ask people for money, they will get it. They will not get much. Most crowd funders do not reach even 50% of their stated goal; and much of that has to do with poorly-designed, -framed, or -managed campaigns.
Automated Solicitation/Donations Processing Sites
The more proper name for “crowdfunding” sites. CF sites outsource solicitations to people who create campaigns, thus the donations processing side is where they must make their income, and that is achieved through volume. Since the number of active campaigns may be in the tens of thousands, it would be inefficient to have people comb through them, checking to see their progress and identifying which are likely to succeed (never mind personal biases in those choices!). Instead, there are layers of artificial intelligence that look for campaign trends to identify and promote those campaigns that are most likely to achieve beyond their goals.
Among the most important of these are:
1. The gross percentage contributed in the first 48 hours;
2. The number of different contributors in the first 48 hours;
3. The geographic spread (national/international) of contributors; and
4. The reward tiers that are being claimed by contributors, by value.
A successful campaign will receive 20% of its goal in 48 hours, from at least 10% of minimum contributors. This campaign will require $1,000 from 40 people, in the first 48 hours, to boost the likelihood of success.
When the CF site’s A.I. spots the combination, our campaign will be featured on their home page, be put into social media campaigns, and they will otherwise promote our campaign, because it will look like they can make $500 or so. Having contributors from across the country, and having a spectrum of reward tiers being claimed, will tell the A.I. that our campaign has widespread appeal.
NORML’s advantages
Widespread social media reach, networks of media contacts, chapter promotional channels, and hundreds of active members. With a lead time of 3-5 days, I would not be surprised to see the $5,000 net goal achieved in a few days. Limiting rewards will prompt people to act, to avoid missing out, however it also puts a cap on this campaign which makes it less attractive to the CF site. Their promotional efforts will be tied into projected income. At the same time, it behooves a CF site to have successful campaigns. This campaign has an achievable goal and a “cool” material return for contributors.
Timeline
WEEK 1: Flesh out the campaign. Prepare publicity materials, write and vet video script, mock-ups of the rolling papers needed, take photos of reward tiers. Start to “leak” information. Collect and tally contribution pledges from insiders.
WEEK 2: Pre-publicity. Shoot and edit video. Fill in CF campaign page with publicity materials, photos, pitch, etc. and submit for approval, if need be. Contact print media. Prepare social media posts. Inform chapters and members of the upcoming, limited opportunity. Start a daily countdown to launch.
WEEK 3: Launch campaign. NORML promotes through social media, website, blog, etc. Chapters encouraged to do the same. Arrange for celebrity friends of NORML (i.e., Danny Danko, Willie Nelson, Snoop Dogg) to post in their social media that they going to throw down $15 or more. In some cases I would recommend a launch event, but NORML doesn’t need one and the potential return on the campaign is not so great as to justify one.
WEEK 4: Backer update #1. Follow up on press requests. Continue to promote in social media, especially the video. Reminder post to NORML chapters to participate and promote.
WEEK 5: Backer update #2 with request for support from their communities. Continue social media promotion. At this point it is good to add a mid-campaign perk because it offers new information about the campaign and may bring further contributions from backers. Press follow-up, announcement of campaign progress and new perk.
WEEK 6: Assess health of campaign, if under cutoff % (varies by campaign, usually around 75% of dollars and/or donors, consider canceling/refunding). If campaign is near or over goal, add stretch goals (not applicable for this NORML campaign), this when successful campaigns become hugely successful. Backer update #3 with information about the promotional campaign, appeal for their help. Social media—final push.
WEEK 7: Final update and Thank Yous to backers. Note time frame for funds clearing and fulfillment. Tell your network how successful the campaign was. Thanks on social media.
FULFILLMENT: Thank you note in mailings. Backers informed to expect rewards via email. Inform them of our next crowdfunding project.
It will take less than 2 weeks to prepare the campaign. It should take less than 4 weeks to reach our goals. Campaigns that achieve 50% of their goal in the first week almost inevitably succeed in reaching 100%. By having 20%+ put in by NORML board, NLC, and chapter members, we have a large advantage.
V. Conclusion:
I will produce drafts of publicity materials, the video script, and run the backer engagement during the campaign.
NORML staff will promote the crowdfunder among established NORML contacts (chapters & celebrities, via email) in social media channels, with the press, assemble and photograph mock-ups of reward tiers, and arrange for fulfillment of up to the maximum participation levels.
NORML gains publicity, offers exclusive “insider” access to a cool product, gets new members and contributions from known and new supporters, and once the $5,000 is achieved (371contributors at $15 each), NORML can expect over 50% of it in cash while building interest in the organization.
