Crowdfunding Reward Ideas
Crowdfunding Perks | Reg CF and Reg A
Crowdfunding Reward Ideas | Crowdfunding Competition
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Rewards-based crowdfunding is one of the top fundraising options for a majority of business owners. And it’s not surprising why; it’s much more efficient to launch and manage as opposed to other fundraising options, it can snowball in popularity with social sharing and it can capture the hearts of your customers, and, best of all, just about anyone can back your business and pledge a little cash.
Small Business Crowdfunding Reward Ideas
The rewards are, of course, at the heart of any rewards-based crowdfunding. Although some investors will back your project solely out of personal desire or affinity to see your business succeed, many of them will decide to back your business based on what they get out of it. What rewards you offer to your investors is totally up to you, so you should think carefully about what would incentivize your supporters. Following are three main categories crowdfunding rewards and crowdfunding perks fall into:
Pre-orders are the most popular type of crowdfunding reward. With this approach, you simply sell pre-orders of the product that you are raising capital to produce. This is an excellent mid-level reward and it is a great way for investors to experience the impact of their contribution.
If pre-orders don’t fit your business model for some reason, you can offer special services in exchange for support. From developers offering to write code for supporters and fans, to founders preparing a home-cooked meal for backers, there are plenty of options available in this rewards category.
This is a perfect entry-level crowdfunding reward for donations under $50. This category offers investors some kind of personal recognition for their support. This may include the backer’s name on the company website, company t-shirt commemorating the campaign, etc.
Additional Crowdfunding Reward Ideas
Apart from the above-listed primary reward categories, there are a lot of other crowdfunding rewards and crowdfunding perks that you can use to generate bigger amounts of capital pledged into your project. These include (but not limited to) the following:
Masterclasses: If your business or project is related to art, e.g. craftwork, painting, etc., then it may be a good idea to consider rewarding your backers with invites to masterclasses within your area of expertise. Special Editions: Creators of projects related to publishing, e.g. books, music, fashion, etc. could consider rewarding supporters with special editions of their work.
Exclusive BTS Experiences: For movie productions, offering ‘behind the scenes’ experiences exclusively for supporters and investors can be an excellent motivational factor.
Tickets to Events: If you are holding an event to promote your project, you should consider rewarding potential investors with tickets for that event. A ‘thank you’ Card: If the nature of your project or business doesn’t allow offering attractive rewards, a simple ‘thank you’ card might do the trick.
These are just some crowdfunding reward ideas that project creators and business owners can make use of. The most important thing that you should ensure is that the service or product you are promoting as your reward is not available anywhere else. In other words, it must be unique or exclusive to really attract a lot of pledges.
Crowdfunding Perks If you are planning to launch a Reg CF crowdfunding campaign, perks are one of the first elements that you should consider. You can offer perks to your investors in exchange for contributions. The name “perk” may lead you to believe that these crowdfunding elements are optional, but the truth is, they make a big difference in the success of a campaign. The more exciting the offer is, the more likely investors are to contribute. According to studies, campaigns with perks and rewards raise an average of 143% more as opposed to campaigns without them.
If you are new to this crowdfunding approach, then you are likely to find it challenging to figure out what kind of things you can offer as perks and rewards. But you don’t need to worry, this guide will help you regarding some of the popular crowdfunding perks and how to offer them.
Crowdfunding Reward and Perk Ideas
No matter the reason why you are fundraising, crowdfunding with rewards is an excellent way to get the financial support for your business or project needs. There are a number of options when it comes to crowdfunding rewards and perks. Following are some popular examples to gain inspiration on how to motivate potential investors and generate bigger donations:
This is one of the most common Reg CF crowdfunding perks that many businesses and individuals use. If you are an artist, you could enable the early purchase of your work. Many video game creators also use the pre-order strategy to incentivize their investors by granting them early game access.
The Service or Product Itself
This can be any product with consumer appeal. The more unique and innovative the product, the higher the chance of the project has of succeeding in attracting investors. For instance, if you have a tech project, how about giving your investors a perk in the form of Bluetooth speakers, gesture-controlled mouse, etc.? If your work is related to publishing, e.g. books, music, fashion, etc., then you could also consider rewarding supporters with special editions of your product.
Sometimes, Shop Fund business owners and entrepreneurs offer their potential backers great rewards of exclusive access to the company or invite them to participate in certain activities. A special prototype demo unveiling or office visits are memorable experiences that investors would certainly appreciate.
Offering sponsorship tiers for various donation amounts is another great way to inspire investors and businesses to support your business. By doing this, you can give investors/businesses the opportunity to expose their own brand to a new audience, while also helping you raise much-needed capital for your project. Apart from this, you can also announce your partnership on social media, which further boosts brand awareness for both you and your sponsors.
Tickets to Future Classes or Events
If your business offers in-person experiences, such as hosting concerts, cooking classes, lessons, etc., then it is highly recommended that you consider engaging your investors by offering them tickets to future classes or events in exchange for their contribution. This way, you can raise capital to cover immediate business costs, while offering your backers something to look forward to (once-in-person classes or events can safely resume).
Offering merchandise to your investors in exchange for their donations is another easy way to motivate them to donate to your crowdfunding fundraiser. If you are utilizing this crowdfunding perk, then it is recommended that you try to offer branded merchandise; anything that has your business logo or name on it. In this way, you will be able to market your brand while your investors display, use, or wear the items.
If possible, try to choose merchandise that is related to the services or products that your business offers. Doing so will cause your investors to keep your business and products in mind every time they use your merchandise. For instance, if a restaurant owner, a t-shirt with your business logo or name on it could be an excellent crowdfunding perk choice.
If you run an organization or own a social club, consider offering your investors memberships in exchange for their support. If you choose to utilize this crowdfunding perk, make sure that you highlight all of the membership benefits in your crowdfunding campaign’s description. The more benefits you offer, the more motivated your investors will be to make larger donations.
Discounts, Vouchers, and Coupons
While branded merchandise might attract investors to support your crowdfunding campaign, perks that give people the opportunity to try your service or product are even better. Offering discounts, vouchers, or coupons as crowdfunding rewards is not only a great way to quickly earn support of your investors and cover immediate business expenses, but it also gives your backers the chance to fall in love with your business and, eventually, become loyal customers.
A Top-Up Perk
Many equity crowdfunding campaigns also offer a perk in addition to the equity. The equity on offer is always the key incentive in such crowdfunding campaign, not the reward. But, offering an additional perk can prove to be very useful for a number of different reasons – showing appreciation, customer validation, and even encouraging the campaign itself. This additional encouragement can be an outstanding strategy as it serves to get backers across the line in order to reach your crowdfunding goal (i.e. if you are on the fence about investing, then we will offer an additional perk if you choose to invest).
These are some of the crowdfunding perk ideas to help boost your fundraising success. When you are planning your fundraising campaign, don’t leave considering your rewards until the last minute because they are crucial for the smooth and successful run of your campaign. Also, it is important to keep in mind that the perks and rewards should be a festive way to motivate investors for support, but they should never take away from the primary goal of your campaign, which is simply to support your project. So, trust the work is enough and that you don’t have to offer the sun and the moon to get a donation.
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Crowdfunding Reward Ideas