A key component that distinguishes crowdfunding from traditional methods of financing business ventures is the different incentives that attract investors and backers. Unlike investors of traditional capital-raising methods who gain equity, backers of crowdfunding platforms give money in exchange for the opportunity to be involved in something with a more abstract meaning. It is up to the creators of crowdfunding campaigns to give meaning to their projects and essentially create an experience for their backers. Offering excellent rewards is one of the best ways to capture attention and encourage support. That is why it is so crucial to be thoughtful in the types of rewards offered on a campaign.
Create enticing rewards for all price tiers. Have high, medium and low price categories to attract people of all backgrounds. Also, don’t be afraid to be bold and put a big reward up on your campaign. It may seem risky to have what may seem like an unrealistically high price tier, but even if only one backer gives $300 in exchange for a $200 reward, that is still $100 raised for your campaign.
Here are some ideas to help you get thinking of the types of rewards you might want to offer on your campaign:
Thank backers directly or give something that represents their contribution to the growth of your business
Because HFAVET is a platform that especially attracts backers interested in supporting business ventures, it might be enticing to offer rewards that allow your supporters to track your business progress. Offer your backers a monthly newsletter that updates them on the status of your business and different projects going on. Maybe offer to list your backers on your company’s website, or try writing them handwritten letters thanking them for their contribution. Keep in mind that personalized rewards give backers a unique experience that they won’t find from supporting any other business.
Give them a copy of the actual product
As part of a reward on your campaign, offer to send backers your business’s actual products or services. If you are the author of a book, send your backers a copy. Also try offering something that represent your business’s brand or product. For example, reward your backers with merchandise that has your business logo. Send your backers mugs, t-shirts, caps and totes.
Share your skills
Think about your own skills and talents, and whether or not there is opportunity to share your knowledge. Try creating a pamphlet with tips in your specific areas of expertise and sending it to your backers as a reward for their contributions. Maybe even go as far as setting up a phone call or video workshop in which backers can personally ask you questions.
Perhaps the most successful crowdfunding campaigns are those that offer creative and unique rewards. Don’t be afraid to be different and create rewards that may seem totally off the charts. Have fun and offer interesting and quirky prizes. Give your backers a story to share!
The powers of the simple sidebar
The rewards you offer in your campaign are a way to showcase your creativity as an entrepreneur and ultimately demonstrate the values of your business.
The most important thing to realize about crowdfunding is that every single project should benefit its backers just as much as its campaign creators, and it is ultimately up to you to determine how. Attract backers with excellent rewards and have fun creating them!