What is BBNomics?
BBNomics offers a comprehensive marketplace designed to match potential supporters with compelling projects in need of funding. Projects may come from a diverse set of areas including commercial technology, scientific research, inventions, community support and education. BBNomics can help you secure funding for your project without giving away an equity interest or incurring debt. Funding is secured from a large number of pledges entered by backers found through the use of social media.
How does BBNomics work?
BBNomics helps you tap into the power of the crowd, small contributions from a large number of people. Crowdsourcing has become popular in many areas of business, so it is a natural progression to make its way into funding.
Why do people support projects?
We believe people support projects they truly believe in. If you are committed to a vision and can share your enthusiasm with them, they will want to be a part of your campaign. They also respond to the smart, fun, and tangible rewards you offer in return for their support.
Why does BBNomics exist?
In this depressed global economy of tight credit, cut budgets, reduced grant availability, and skittish venture capitalists – a new funding paradigm for black entrepreneurs is needed. A good idea can go viral through social networks and the funding you need can come from small amounts contributed by many different people instead of a few large sources.
Can projects use BBNomics for equity investments or as a borrowing source?
Not yet but the new JOBS Act that was signed into law in April of 2012, made it possible. This law is implemented and we’re exploring ways to be realize it. Currently, all projects on BBNomics are based on the pledge-reward crowdfunding model.
JOBS stands for Jumpstart Our Business Startups. The legislation is intended to help entrepreneurs and fast-growing companies sidestep some securities regulations that prevent entrepreneurs from selling shares in privately held companies to the general public. Details associated with the implementation of this legislation is available by the Securities and Exchange Commission.
Where is BBNomics located?
BBNomics is based in Cincinnati, OH U.S.A., but you can create a project or back a project from any PayPal supported country. You can verify PayPal’s status in your country here.
What is the key to a successful campaign?
First and foremost, you need to come up with a compelling “pitch” to potential backers. Your project profile must convince people that your project is worthy of their pledges. Tell them how they or others will personally benefit from your project. Over 75% of all pledges made on all crowdfunding sites are pledges for rewards that are under $75, with the most popular in the $25-$30 range. Over 90% of successful projects contain a video that brings the project alive to a backer.
Who owns the rights to my project or idea?
You do. Project owners keep 100% ownership of their work.
What is the vision of BBNomics?
Our vision is broad. We want to enable innovative business ideas to flourish in the black community. We want to help fill the gap between research and results. We want to aid communities support useful projects to help their residents. We want students at all levels of education to have every opportunity to achieve their potential.
Traditional forms of funding continue to constrict and are increasingly difficult to obtain. At the same time, many people would like to lend support if even in a small way. With BBNomics, any individual can contribute at whatever level they are able, add their bit to the larger pot, and make a difference.
How do I back a project?
To pledge a project, just click the “Contribute Now” button on any project detail page. You will be asked to select your pledge amount and corresponding reward. From there, you will step through a checkout process via Paypal. You must thoroughly complete the checkout process in order for your pledge to be recorded.
How does pledging a project work?
When you pledge money to a project on BBNomics, you acknowledge that your pledge is not an investment, nor are you to gain any financial reward by supporting a project. You do so out of a desire to support the project, the project owner, or the “greater good” brought by a project’s success or implementation, as well as for any reward offered to you for making the pledge.
A pledge you make to back a project will only be processed at the end of the project’s campaign when the project reaches its Goal Amount (unless the project is cancelled by the project owner).
If I make a pledge, what information does the project owner receive?
Project owners receive your contact information (name and e-mail address), along with any fulfillment instructions you provided when you entered your pledge.
Is my pledge amount displayed on the site?
No. This information is held confidential between you and the project owner.
How can I find out about updates to a project I’m backing?
Project owners can post updates about their project as often as they deem necessary. Each time an update is posted for a project you’ve pledged, you will receive an e-mail notification so you can check the Updates tab on the project detail page to get the latest scoop. You can also use the “Send Message” option on the Project page to send a message to the project owner whenever you have a question or want an update from them.
Why do I need to have a PayPal account?
BBNomics uses PayPal to manage all transactions and ensure they’re secure. It’s simple to use, safe, and an internationally recognized payment processing service. If you don’t have a PayPal account, you can create one for free. It takes only a few seconds and can be done during the pledge process. Alternately, you can go to www.paypal.com (the Sign Up button is in the upper right corner). Funds are transferred directly from the PayPal account of the backer to that of the project owner at the end of the campaign period.
Can I pledge a project with a personal check or cash?
No. BBNomics only supports payments through PayPal.
Can I cancel a pledge I made?
Yes. You may retract a pledge you made for a project by selecting the Manage Pledges tool in your My Account menu and then clicking on the Cancel button for the specific pledge. You may only cancel a pledge if the project has not yet been funded.
Are pledges tax-deductible?
If the project owner has 501(c)(3) nonprofit status, then all or part of the contribution may be tax-deductible. We advise project owners to tout their tax-exempt status, if they have it, on their project detail page. In order to inquire further, please contact the project owner directly for instructions on getting a receipt for tax purposes, and then consult your tax advisers about how to deduct.
How do I know if a project owner is who they claim to be?
During our project approval process we make every attempt to vet the project owner. However, we encourage you to undergo your own due diligence to get to your own level of comfort. Use all of the information, files, and links provided by the project owner to do your own investigation. You can always contact the project owner with your own set of questions using the Send Message button on the project page.
Can people outside the U.S. back projects?
Yes! Anyone living in a PayPal supported country can make pledges for projects. You can check PayPal’s availability in your country here.
Am I notified once the project I’m backing is funded?
Once the project you backed reaches the end of its campaign period, your pledge will be processed BBNomics and PayPal will send you an e-mail confirmation.
What do I receive for backing a project?
At the time you offer a pledge for a project you will select a corresponding reward. This reward promise should be fulfilled by the project owner at some point after the project receives funding. Some backers may choose to pledge without requiring a reward payment.
How do I claim my reward if I haven’t received it?
Only the project owner can answer that. BBNomics is a marketplace that connects people with a project in need of funding and people who wish to back the project. BBNomics, however, is not involved with the actual projects themselves. As with sites like eBay, if there’s a problem receiving your reward, you can contact the project owner directly by using the “Send Message” link on the project page.
How much information do I share when making a pledge?
You are only identified by the “Display Name” you provided in your member profile. You may choose to use a pseudonym to remain anonymous. If you do not provide a “Display Name” in your member profile, then you will be identified by your “Anonymous”; upon request.
Are pledges refundable after the project is funded?
No, refunds are not possible after the project is funded because pledges are disbursed immediately after a project reaches the deadline.
What happens after I contribute to a project?
The project owner may publish updates to the project which you can check periodically on the project detail page. You will also receive notification e-mails about updates to the project. The project owner may choose to contact you after the project is funded in order to coordinate the fulfillment of your reward. You will also receive a confirmation e-mail from BBNomics.
What do I need to create a project?
You need a thumbnail image (a small picture or graphic image “3 by 4 portrait”) that represents your project, a complete description or “pitch” that promotes your project to potential backers, a well thought out funding goal, web addresses that backers can use to learn more about what you and your project are all about, and anything else that might convince someone to back your project: executive summary, revenue projection, PowerPoint presentation, etc. We strongly suggest that you produce a short and simple video of you or your team talking about why your project is worth backing. You must also think carefully about what pledge denominations you wish to offer and what rewards you will be fulfilling in return.
What do I include in my pitch?
You should cover the “who, what, where, when, why and how” of your project. Be thorough, straightforward, and authentic. Speak to a stranger in terms of what you’re raising money for.
Can I create a project if I’m not in the U.S.?
Yes. A project owner can be in any PayPal supported country and can attract backers in any PayPal supported country. We encourage a global audience for both project owners and backers. You can verify the PayPal status in your country here.
Is there an age requirement to create a project?
Project owners must be at least 18 years of age.
Are goal amount and deadline required?
No. There is no funding goal amount or deadline, although we suggest you be realistic in your goal amount and try to keep your deadline to (7 – 365 days). This is up to project owner to define.
What should be included in my project’s Goal Amount?
You need to carefully consider ALL of your costs when calculating your Goal Amount. Remember, your costs are not just those specific costs for running your project as planned, but you need to factor into your Goal Amount:
The cost you will incur in fulfilling the rewards you’ll owe backers for their pledges.
The PayPal fee that will be deducted from the pledges processed by PayPal (2.9%) + $.30 per transaction.
The standard BBNomics fee of 5.0%. If you choose to use our Premium Marketing Resources, then factor in 8% (plus additional marketing cost) instead of 5.0%.
The total cost you will incur is about 7.9% + $.30 per transaction (without Premium Service).
Can I change my project’s Goal Amount or deadline?
No. Once the project is approved and appears on the site, you may not alter the Goal Amount or the deadline.
Can I change my pledges and rewards?
No. Once the project is approved and appears on the site, you may not alter the pledges or rewards since they represent a form of a contract with backers.
Can a project profile be changed after approval?
Yes. You may change certain project profile elements (thumbnail image, description, project files, etc.) after it has been approved and is available for backing. All backers will be notified by e-mail whenever you post an update to your project.
Can I divide my project into separately funded phases?
This is quite appropriate for ongoing research projects, large community projects, or any project that is best approached in stages, and it could work for commercial technical projects as well. Project phases do have potential issues with backer exhaustion (asking the same audience multiple times for support).
Can I have more than one project simultaneously?
No, you cannot have more than one active project. We feel that you owe your backers your full attention on one project at a time in order to assure its success and assure your ability to satisfy all rewards due. On the other hand, you can create as many project profiles as you wish and use BBNomics as a project note pad. You can use these project profiles as the basis for future projects after your current project is completed.
Is there a maximum Goal Amount?
No, but choosing your Goal Amount must be done carefully. You shouldn’t choose an amount so high that it could make reaching the amount unlikely. At the same time, you should raise an amount commensurate with the nature of your project and how much you feel you can attract from your social network.
Is there a time limit for funding?
No, but you set your own time limit from a range between 7 and 365 days.
What is the difference between Standard and Premium Marketing Resources?
At BBNomics, we will help your project meet its funding goal with Standard Marketing Resources. If you wish to have us take a more active role in helping you, then Premium Marketing Resources is the way to go. We submit press release, pre-write emails, social media marketing, email blast and much more during the duration of your campaign. These services are not part of the 8% premium fee, they are in addition to the cost associated with providing these services. BBnomics do not absorb these cost, they will be passed on to you. To recieve additional help you must email us, click here .
Is there a different fee for Premium Marketing Resources?
Yes. Our normal fee which includes Standard Marketing Resources is 5.0% of all pledge dollars collected for your project. If you select Premium Marketing Resources the fee is 8% instead (plus additional marketing cost). Please review our marketing resources page for a complete list of additional services provided.
Can I cancel a project after approval?
You may cancel an approved project that has already attracted pledges, but you must contact us first and provide an explanation why you’re no longer committed to the project. We will delete the project for you and all outstanding pledges will be voided. Canceling a project in funding is highly discouraged because it sheds negative light on you and our site.
How do I know someone won’t steal my ideas?
This is an important question for commercial technology projects. First, we use special Non-Disclosure language in our Sign-Up page that asks members to agree to honoring intellectual property. We also publish a whitepaper written by a prominent intellectual property attorney that will help you protect your ideas. Still, BBNomics is all about open collaboration on technical innovation, so an awareness of this philosophy will measure your expectations.
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