- Relevant if you are running a Rewards Based Campaign
- Logical organisation and realistic structure of rewards are key
- Plan for between 9 and 15 reward levels for optimal impact
- Think about how rewards can promote your business
- Avoid campaign slump by revealing special rewards throughout the campaign
- Research successful campaigns for ideas
To meet the funding goal in reward based crowdfunding it’s essential to setup a smart reward strategy. Keep a clear, simple and straightforward explanation of all rewards and associated pledge amounts. Offering interesting and unique incentives can encourage a crowd into contribution. Think strategically when defining pledge amounts, rewards being offered and be sure to include all associated costs in your budget…
In reward based crowdfunding, the logical organisation and realistic structure of rewards are key elements of a successful campaign. In order not to confuse backers about what they get in return for they contribution the clear, simple and straightforward explanation of all rewards is needed. This includes the definition and pledge price of each option.
Categories of offered rewards are usually determined by the project type. As well as the product itself, other rewards offered can include early or exclusive access to and even an enhanced version of the product, giving a chance to contributors to be a part of the project, souvenirs and memorabilia (photos, audio & video records, booklets etc.) special and private events or experiences, special credits and mentions.
Offering interesting and unique incentives can motivate a crowd to contribute to the campaign. Rewards which are not available anywhere else can raise the number of backers who are interested, to pledge for unique, exclusive, eye-catching or creative rewards which they can’t buy anywhere else.
When developing the rewards structure it is also important to think about how rewards can also serve as an instrument for promoting your product/service and building your brand recognition, as well as building the community from backers. If well thought out rewards can serve as a good tool for building the community from backers or promoting products.
Optimal reward’s quantity
The optimal number of rewards is generally considered to be about 12. It is recommended to plan the total number of rewards between 9 and 15, to offer a sufficient range of interesting rewards, and a well-crafted escalation of pledge values.
While pricing each reward tier, consider both very low priced levels (around €5) and really highly priced incentives (€’000’s) at the top level of the reward structure.
Avoid large gaps between each of the pledge. Keep in mind the simple rule: backers can’t contribute to anything which is not on the reward’s list. This helps to motivate contributors of different income groups as well as raise the passion for the project among more people.
Rewards of lower tiers (€5 – €50) are minor items and typically include simple ‘thank you’, T-shirt, CD, DVD, e-book, post card, etc. Rewards from the top of the list are generally items of one-of-a-kind and much more appealing to the wealthy funder.
To set up a cumulative reward structure is also an option. It means that each higher level offers all rewards from lower tiers plus an additional bonus. This can motivate potential contributors to pledge for a higher level than they would otherwise consider.
It can also be useful to plan some rewards which will be revealed later throughout the campaign. You may also consider inviting suggestions for rewards desired by potential backers. This kind of strategy supports the potential buzz during the campaign and can re-engage funders or be a source of new contributors and fans of the project. Campaigns tend to experience a slump during the funding period so this strategy can also help maintain momentum during these slump periods.
For inspiration or more details about the reward structure check other successful campaigns for ideas.