⚙️ #20 Next Step: Crowdfunding 🔑

For this weeks newsletter we wanted to dive into crowdfunding. With the launch of our First100 crowdfund this past week, it is the perfect timing to go into how our program differs compared to more traditional crowdfunds.

The engagement around the program and interest in learning about the Dust design and build process has been fantastic.

The Usual Approach

The general public has become quite comfortable with the concept of crowdfunding as a legitimate approach to help fund a start up business. At a high level there are three traditional approaches to crowdfunding: 1) A donation based program to help with emergency relief for disaster or illness, 2) A group of people pay either a down payment as a place holder or pay a discounted price up front for a product or 3) A newer approach is that of Patreon, where it's a subscription based program to support artist, but this platform is not necessarily built for capital intensive business.

All of these methods have become proven ways to create demand and find early interest to validate your concept. However, from a customer point of view these are all a significant exercise of trust as the product is still being developed behind closed doors. As the customer, you don't often get updates on the product until it is being produced and shipped, assuming it makes it to that stage.

The most popular of the current era is the refundable deposit approach. We have all seen quite a few companies get massive pre-order books filled, which is great optics for the brand and provides great initial capital. However, companies can have a hard time either fulfilling those orders in a timely manner or they realize that the conversion rate is low, only after they have already invested millions into development and production capacity. Delays can have a significant impact on customer satisfaction and therefore future order numbers. Unsecured backers can also lead to over investment in production capability if there is an inaccurate representation of customer interest - causing business failures at both ends of the spectrum!

The Dust Approach

We always planned to launch a second crowdfund but wanted to make sure we found the right balance of customer commitment and confidence of execution.

Our amazing Founders50 group has provided immense value in the early stages of development, but we also know it is necessary to keep showing signals of growing demand and traction in the marketplace. Could we find the right balance of personal attention, as well as capture the growing excitement around Dust the brand?

Enter the First100. Dust has built a crowdfund program developed around our commitment to the build in public platform while bringing in the concept of built to order. It gives those future customers the opportunity to be part of the build and design process so they can ensure that the bike we are building is genuinely the bike that they want to ride. Dust will only build bikes if there is clear demand, allowing us to manage the financial model more effectively.

The top level structure is that we are allocating the First100 full production bikes to these members, and providing a monthly payment program that brings them into the process and build excitement with us on a continuous basis. The value is as much in the process, as it is in getting an awesome product at favorable terms.

We also felt that there should be some exclusive offers for folks that join us in the early phases of the effort. We've started a perks program for both Founders50 and First100 that unlock as more members join to make things more exciting for all!

1. At 50 sign ups it will unlock a unique Dust moto jersey for all of the members.
2. At 100 sign ups, everyone in the programs will receive a special launch edition graphic kit for their bike. We will be making this an interactive effort, soliciting input from our backers.
3. Finally, if we fill First100 within the month of March, we will raffle of a custom painted Fox V3 RS carbon helmet in partnership with Tony Baumann (@maderadbytony in Instagram). The winner will get the chance to create their dream design on a top-end helmet. Truly something we mere mortals have all dreamed of doing.

At the end of the day, we truly believe that the alpha prototype is at as high level of quality as it currently is because of the early involvement of Founders50. They've had consistent input that has been integral to Alpha_1, and we want to expand that rider involvement with an enlarged group of committed early adopters through the First100 program. All with the purpose of making the Model_1 the best mid-weight eMoto dirt bike possible.

We fell this makes us truly unique. Aligning the commitment of Dust with the customer to produce a brand and product like no one has ever seen!

We think we are on the right track, what are your thoughts?

Gold Dust

• Local Bend MTB hero and closet Moto ripper, Carson Storch just dropped his edit, highlighting central Oregon (Bend area) riding: HERE.
• It's winter time so it's time for people to start doing weird moto projects with cold weather applications. What's weirder then turning a Harley Davidson road bike into a snow bike? You be the judge, check it out HERE
• Josh Hill rode the Dust bike a couple weeks ago down in Southern California and it was included in his most recent vlog on YouTube. He also rides the Stark Varg on some big hits, and gives us a behind the scenes glimpse of what all goes into a Supercross weekend as a non fully factory supported competitor (Dust crew as pit-hands included). Check it out below!

Catch us at newsletter@dustmoto.com OR just respond to this email!

Done and DUSTED for this month. See you all on the next lap.