EntrepreneursHow much does it cost to join MoolaHoop?When do I receive my funds?What if I don't reach my funding goal?How do I create a project on MoolaHoop?How do I communicate with my supporters?
Entrepreneurs define their business projects and post videos, photos and detailed descriptions about the projects on www.moola-hoop.com. A funding goal and an end date for each project funding campaign is established - each campaign lasts 21 days.
The Entrepreneur offers Rewards in the form of special pricing on products or services, or a unique experience. Potential Supporters view the projects on MoolaHoop and pledge a dollar amount toward those that interest them by entering their credit card information.
When the project reaches its minimum funding goal, the Supporters' credit cards are charged for the amount of their pledges and the funds, minus fees, are made available to the Entrepreneur. If Supporters make pledges after the minimum funding goal is reached, their credit cards are charged immediately. If the project funding goal is not achieved by the end date, the Supporters' credit cards are not charged, the Entrepreneur receives no funds and is charged no fees.
The Entrepreneur specifies non-monetary "thank you" Rewards that the Supporters will receive at specific pledge amounts. Most often the Rewards are the Entrepreneur's products or services at special discounts, or a unique experience. Supporters do not gain any equity in the business, and the Entrepreneur does not owe the Supporter any monetary return.
Supporters contribute to the success of a project based on businesses ideas that interest them or an Entrepreneur's personal story that appeals to them. Current customers, who appreciate the Entrepreneur's business and want to see it grow, are ideal Supporters.
Entrepreneurs age 18 or older, who have a US Social Security Number (SSN) or Employer Identification Number (EIN), can post projects on MoolaHoop as long as the Project Guidelines are met. MoolaHoop is designed to help women who own, manage or substantially impact a business.
Any person over 18 can be a Supporter. A Supporter must supply a credit card number when making a pledge.
At this time MoolaHoop Entrepreneurs who post campaigns must have a US Social Security Number (SSN) or Employer Identification Number (EIN) and base their business operations in the US.
Supporters can be located anywhere, barring local prohibitions, provided pledge payments can be made in U.S. dollars with a major credit card.
Joining MoolaHoop is free.
MoolaHoop receives payment only when projects reach their minimum funding goal by the project end date. Then, MoolaHoop's fee of 5% of the total amount raised and the credit card processing fees of 2.6% of total amount raised plus 30 cents per transaction are deducted and the Entrepreneur receives the balance of the funds.
If a project does not reach its funding goal by the project campaign end date, the Entrepreneur is not charged any fees and does not recieve any funds.
When your project achieves its minimum funding goal, MoolaHoop's payment processor, WePay, processes the credit cards of Supporters who have made pledges. The Supporters pay no additional fees other than their pledge amount. Supporters can continue to make pledges after the minimum funding goal has been reached and before the project end date and those credit cards charges are processed immediately.
WePay deducts from the successfully funds raised its standard credit card processing fees of 2.6% and .30 cents per transaction and MoolaHoop's fee of 9%. You create a secure WePay account when you build your MoolaHoop project and you link your bank account to WePay. Once the all the charges have been processed, you sign onto your WePay account and transfer the net funds to your bank account.
If the project does not reach its funding goal by the campaign end date, you receive no funds and are not charged any fees.
You do not receive any funds and you are charged no fees if you do not reach your funding goal. Like many other rewards-based crowdfunding sites, projects on MoolaHoop must achieve their funding goal or no money changes hands.
However, MoolaHoop encourages Entrepreneurs to establish milestones, each with a unique funding goal, and the Entrepreneur will recieve all funds raised during the campaign if the first milestone is reached . Funding goals and closing dates are established by the Entrepreneur before the project is posted on the MoolaHoop site.
- 1. Clearly Define Your Need
Do you want to expand into a new business line, increase your marketing or manufacturing capacity, broaden geographically, or develop a new product or service? Your first step is to define the need and the cost to get you there.
- 2. Create the Rewards
Rewards are what you give to Supporters to thank them for their contribution to your project. Rewards ensure that Supporters benefit from your project in a way meaningful to them, and that they remain interested in continuing to contribute toward the long-term success of your business.
When calculating your project funding goal, take into account the full cost of the Rewards, including delivery costs. The best Rewards are special pricing on your products or services, or a unique experience. Reward scarcity can be an incentive to get Supporters to pledge, so at higher levels you may wish to offer only a few unique rewards to motivate Supporters to pledge before supplies are exhausted.
You may choose Shipping or No Shippping (electronic delivery). Make sure you have carefully determined the cost of delivering your Rewards to Supporters is you elect to Ship, as you will want the pledge amount to cover the shipping charges. Each Supporter will receive a voucher at the end of a successful campaign, confirming their pledge amount and the Reward they chose. This can be used if the Supporter is going to claim their Reward at your place of business.
- 3. Make a Video
Tell your story. It is best if your video is about 2 minutes or less (less is good!). Supporters give to businesses and Entrepreneurs whose stories appeal to them. Tell the audience who you are and why they should contribute to your business. Explain clearly what you will do with the money if you are successful, and how long you anticipate it will take to accomplish your business plan. Ask people to support you, and explain what Rewards they will receive as part of their participation. Don't forget to "make the ask"!
Don't have the resources to make a video? We don't want that to stop you from launching your project. You may choose to upload some photos to us and we will make a slide show of videos and text set to music that tells your story effectively.
- 4. Plan your activities during the campaign
MoolaHoop campaigns start on Tuesdays and last 21 days. You will want to use those 3 weeks wisely and make sure your calendar allows enough time to promote your campaign and that you secure any help you will need to ensure success!
- 5. Promote Your Project
Your first Supporters will likely come from your own personal and professional networks, most importantly your exisiting customers. Successful crowdfunding projects tnd to raise at least 40% of their funds from people they already know, who in turn share the campaign and story with others with their own networks.
Build an integrated outreach plan combining social media, eblasts, personal calls, media relations and other communications to make everyone in your extended network aware of the project and how they can be involved. Entrepreneurs can increase their odds of success by securing in advance Supporters who agree to make pledges once the project goes live on MoolaHoop.
- 6. Communicate with Supporters
Thank Supporters as soon as they make a pledge. Always answer questions in a timely fashion. Get them excited about your success. Supporters who have a good experience with your project are more likely to support your business and contribute to you again!
- 7. Fulfill Rewards
Once your Project is funded, you need to execute a plan to ensure the agreed-upon Rewards are received by all your Supporters. It is vital to your personal and professional reputation to meet your Rewards commitments.
You will receive your project URL from MoolaHoop when your project is approved. This is a direct link to your project page. Include this link in emails and posts on your Facebook and Twitter account.
You can also "share" from the campaign management page to Facebook, Google + and Pinterest and the thumbnail picture will also display in the feed along with the link.
MoolaHoop will also help. As you build your project, you will see that MoolaHoop will help you with posts to your FaceBook and Twitter accounts. In addition, you can upload your email contacts and we will assist with sending emails out about your campaign.
When you sign into your MoolaHoop account, you will be able to track the activity on your project so that you can assess how many people have seen the project and what your success has been in driving traffic to your project page. Here also you will find information about your pledges, including the name of those who have pledged.
At the end of a successful campaign, you are sent a list of all pledges, the name of the Supporters, their email addresses and other information that you might need to communicate with your Supporters about their Rewards.
The majority of the pledges to MoolaHoop projects are not tax-deductible. A contribution is tax-deductible if the Entrepreneur has formed a 501(c) 3 non-profit organization and a donation is accepted under IRS guidelines. As MoolaHoop is focused on women-owned and-managed businesses, most MoolaHoop Entrepreneurs will be growing for-profit businesses.
Yes. MoolaHoop does not receive or store any financial/credit card information. Our partner, WePay, (www.wepay.com) is a respected ecommerce provider that handles all of MoolaHoop's online credit card transactions.
The Supporters' credit cards are charged when the project reaches its minimum funding goal by the project end date. Once the minimum funding goal is met, the credit cards for all pledges made to that point are processed. If a Suppporter makes a pledge after the minimum funding goal has been met but before the project end date, then the credit card charge is processed immediately.
The Supporter pays no other fees, just the amount they pledged.
If the project funding goal is not met by the campaign end date, the Supporters' credit cards are not charged.
The Project Owner/Entrepreneur's email address is shown on the project page and you should contact the Entrepreneur with any questions about her project.
MoolaHoop will send you confirmation of your pledge via email.
Questions regarding the site may be sent to email@example.com
Contributions may be made from any country, barring local prohibition, provided payment to the Entrepreneur can be made in U.S. dollars via major credit card.
The Entrepreneur will indicate in the MoolaHoop Reward description when Rewards will be distributed, generally after the Entrepreneur has received funding and has begun to implement her project. The Entrepreneur is responsible for communicating directly with Supporters regarding Rewards distribution.