How to create desirable “rewards”… (get more by giving)

Crowdfunding isn’t easy.

In our last post, we shared some tips to help you improve your chances of raising money. To recap, in 5 Tips for Shooting Better Video we discussed the importance of using a personal video pitch to captivate donors, and a few tips to help you make a crowdfunding video that really “sells” your story to friends, family and fans.

If you’ve uploaded a video pitch, you’re half way there. The second most important part to crowdfunding, is offering creative and desirable “rewards”.

Rewards are one of the most effective ways to incentivize your supporters.

Just like video, desirable rewards add another dimension to your fundraiser. Imagine you not only reached your fundraising target, but donations continued to pour in well after you reached your crowdfunding goal. Is this possible? Yes. The answer: rewards.

For example, let’s say you’re trying to crowdfund to produce a music album:

1. You send out frequent emails to your friends and family asking for their support; and post periodic Facebook and Twitter updates letting your social networks know about your fundraiser.
2. Consequently, people visit your MicroGiving crowdfunding page.
3. They watch your video. They see how passionate you are. They even get a chance to hear you strum a few chords.
4. But it gets better. For a $10 donation, you’re giving away a limited edition copy of your album, for $20 you’ll dedicate a song, and for a $50 donation you’ll perform live and in person.
5. Your supporters love it. They click on the “Share This” buttons on your profile to tell their friends and family on Facebook and Twitter.
6. Before you know it, you’ve reached your fundraising goal. And people keep donating because they like you, but more importantly they want the rewards!

Whether you’re recording an album, shooting an independent film, photographing beautiful wildlife, or publishing your first book– one thing remains true: if people desire the reward, they will make a donation whether you’ve met your funding goal or not.

Here are some tips to help you create desirable crowdfunding rewards:

• Start with the project itself.
  What are you doing? What can you offer that is related to the project? If you’re producing a film, offer to put the Donor’s name in the credits. If you’re authoring a book, give away an autographed hard copy, or even name one of the characters after a Donor (for higher donations). If you are producing a music album, offer free digital song downloads, signed copies of your CD’s, and mentions in the album credits. For larger Donors… offer to write them their own song!

• Think scarcity.
  It’s one thing to offer an endless supply of book copies to your Donors. It’s a whole different “story” when only five copies are available. Remember good old “supply and demand” economics? The less supply, the greater the demand. For example, if you’re in a band consider offering a limited number of signed drum sticks used on your last summer tour… dirty finger prints and all! Or the t-shirt you were wearing when you fell off stage (include the mid-motion photograph of you taking the plunge if you have it).
• Be realistic. Match the value of the reward to the donation amount.
  Do you really believe someone is going to hand you $1,000 for a digital copy of your latest white paper? Unless you’re Conan O’Brien… probably not. Ask yourself, “would I pay this price for this reward”? If you wouldn’t, don’t expect others. Make sure the rewards you offer meet your Donors’ expectations.

• Keep it feasible
  Remember, your supporters are trusting you to deliver on your promises. Donors take the time to learn about your project, take an interest, and give you their money. The only thing they get in return (besides altruistic satisfaction) is the reward that you’ve promise. Demonstrate your appreciation for their support by delivering your promise within a reasonable timeframe. If your film is taking longer than expected, for example, just let your audience know by updating them in your blog. This way, your Donors won’t be left hanging…
• Think small, medium, and large
  $5, $10, $25, $50, and $100 are generally the most popular Reward amounts. However, don’t hesitate to throw in a $250, $500, and even $1,000 for those bigger budget backers. Keep in mind, that a healthy range of donation amounts enable anyone and everyone to contribute regardless of their wallet size.

Don’t underestimate the power of “rewards”. A great crowdfunding project that offers desirable rewards can significantly increase the volume of donations you receive. Keep these tips in mind, be creative and don’t forget to include the benefits involved when you create your video pitch!