{"id":1067,"date":"2016-12-09T15:32:14","date_gmt":"2016-12-09T15:32:14","guid":{"rendered":"http:\/\/rachel.we-are-low-profile.com\/blog\/?p=1067"},"modified":"2018-02-13T15:57:54","modified_gmt":"2018-02-13T15:57:54","slug":"designing-great-crowdfunding-rewards","status":"publish","type":"post","link":"https:\/\/rachel.we-are-low-profile.com\/blog\/designing-great-crowdfunding-rewards\/","title":{"rendered":"Designing great crowdfunding rewards"},"content":{"rendered":"<h6 class=\"p1\"><em>Read in 5 minutes<\/em><\/h6>\n<p class=\"p1\">In the article <a href=\"http:\/\/www.crowdfundingpr.org\/25-killer-kickstarter-reward-ideas\" target=\"_blank\" rel=\"noopener\">Kickstarter Rewards Have Three Functions<\/a>, CrowdfundingPR writes that the <strong>main functions of crowdfunding rewards<\/strong> are:<\/p>\n<pre class=\"p1\">1. To involve your backers in the creative process<\/pre>\n<pre class=\"p1\">2. To provide an incentive for people to back your project<\/pre>\n<pre class=\"p1\">3. To allow backers to own the end product<\/pre>\n<p class=\"p1\">The post\u00a0also identifies that designing great crowdfunding rewards is about offering \u201csome kind of value to the backer at a reasonable price\u201d. Carefully working out what \u2018of value\u2019 you are offering through your rewards becomes extra important once we realise that, in the words of <a href=\"http:\/\/sethgodin.typepad.com\/seths_blog\/2013\/01\/the-cost-of-neutral.html\" target=\"_blank\" rel=\"noopener\">Seth Godin<\/a> \u201cNot adding value is the same as taking it away.\u201d<span class=\"Apple-converted-space\">\u00a0 <\/span>In this sense, badly designed rewards might well turn otherwise enthusiastic or willing backers away from your project, and you want to avoid that at all costs!<\/p>\n<h2 class=\"p1\">Make sure your rewards offer something valuable to your backers<\/h2>\n<p class=\"p1\">So how can you offer or add value with the crowdfunding rewards you design? You\u2019ll need to think about:<\/p>\n<p class=\"p1\"><span class=\"s1\">\u25aa<\/span> <strong>The material or monetary worth of the reward<\/strong> &#8211; Does your reward offer a discount on the RRP?<\/p>\n<p class=\"p1\"><span class=\"s1\">\u25aa<\/span> <strong>The rarity, novelty, perceived worth or usefulness of the reward<\/strong> &#8211; Does your reward offer something that is unavailable elsewhere? Is your reward something your backers will find particularly useful?<\/p>\n<p class=\"p1\"><span class=\"s1\">\u25aa<\/span> <strong>The value of the reward compared to the price asked for it<\/strong> &#8211; Is your reward good value for money? Does it feel like a bargain compared to similar products?<\/p>\n<p class=\"p1\"><strong>Your rewards can offer value in any mixture of the following ways:<\/strong><\/p>\n<ul>\n<li class=\"p1\"><strong>physical<\/strong>\u00a0&#8211; backers receive the product itself, or other physical rewards<\/li>\n<li class=\"p1\"><strong>creative<\/strong>\u00a0&#8211; backers having input into the project, like suggestions, voting, testing etc.<\/li>\n<li class=\"p1\"><strong>experiential<\/strong>\u00a0&#8211; backers receive an experience set up by the project creator (an activity, performance, entertainment, event, conversation etc.)<\/li>\n<li class=\"p1\"><strong>sentimental<\/strong>\u00a0&#8211; aimed at friends &amp; family as a show of their support<\/li>\n<li class=\"p1\"><strong>personalisation<\/strong>\u00a0&#8211; backers pay to have themselves, their loved ones or their requests included in the project \/ product in some way<\/li>\n<li class=\"p1\"><strong>exclusivity<\/strong>\u00a0&#8211; backers have special access to the project\/product. This might include some rewards only being available to backers, backers receiving VIP treatment and the value of being an early-adopter<\/li>\n<li class=\"p1\"><strong>social capital<\/strong>\u00a0&#8211; sense of ownership and\/or pride in being involved, a \u2018badge\u2019 of approval of the connection to you and your project<\/li>\n<\/ul>\n<p class=\"p1\">One of the <strong>most valuable rewards<\/strong> for backers is that they are <strong>creating a special (direct) connection to you<\/strong> (the project creator) and your project &#8211; in the words of Sally Outlaw of\u00a0<a href=\"http:\/\/crowdfundingacademy.com\/your-crowdfunding-perks-need-work\/\" target=\"_blank\" rel=\"noopener\">Crowdfunding Academy<\/a> \u201cYou are the reward\u201d.<\/p>\n<h2 class=\"p1\">Design rewards at different tiers<\/h2>\n<p class=\"p1\">This\u00a0video offers a run through of a number of common reward tiers to consider when designing your backer rewards and perks.\u00a0Some backers can spare \u00a3100, some \u00a320, some \u00a35 or less. Make sure that you are offering\u00a0something worthwhile at each of these\u00a0levels (or tiers). Every one of those backers counts, and you need to offer\u00a0them a way to\u00a0back your project, no matter their budget.<\/p>\n<p><span class=\"embed-youtube\" style=\"text-align:center; display: block;\"><iframe loading=\"lazy\" class=\"youtube-player\" width=\"652\" height=\"367\" src=\"https:\/\/www.youtube.com\/embed\/qt4kSV8QGt0?version=3&#038;rel=1&#038;showsearch=0&#038;showinfo=1&#038;iv_load_policy=1&#038;fs=1&#038;hl=en&#038;autohide=2&#038;wmode=transparent\" allowfullscreen=\"true\" style=\"border:0;\" sandbox=\"allow-scripts allow-same-origin allow-popups allow-presentation\"><\/iframe><\/span><\/p>\n<h2 class=\"p1\">Crowdfunding rewards &#8211; DOs &amp; DON&#8217;Ts:<\/h2>\n<p class=\"p4\"><strong>DO NOT :<\/strong><\/p>\n<ul class=\"ul1\">\n<li class=\"li4\">Leave designing your rewards to the last minute<\/li>\n<li class=\"li4\">Offer rewards for less than the cost of manufacture, packaging, and shipping<\/li>\n<li class=\"li4\">Over-promise, or back yourself into a corner with your stated delivery timeline<\/li>\n<li class=\"li4\">Assume that everyone will be willing to pay over market value to support your project<\/li>\n<li class=\"li4\">Assume that no-one will be willing to pay over market value to support your project<\/li>\n<li class=\"li4\">Offer rewards that you yourself would not be interested in as a backer<\/li>\n<li class=\"li4\">Expect that people will want to just \u2018donate\u2019 to your project, or will be satisfied with a cheap rewards (thank yous, simple badges, pens, postcards etc) for pledges of \u00a35 or more<\/li>\n<li class=\"li4\">Offer too many different rewards or offer distracting rewards<\/li>\n<li class=\"li4\">Violate the policies of the platform you are using on what can \/ can\u2019t be offered as rewards (see guidelines on these links for Kickstarter, Indiegogo &amp; Crowdfunder)<\/li>\n<\/ul>\n<p class=\"p4\"><strong>DO :<\/strong><\/p>\n<ul class=\"ul1\">\n<li class=\"li4\">Include rewards at all key price points (see the video above for more info)<\/li>\n<li class=\"li4\">Test out your rewards BEFORE you launch with people in your target audience<\/li>\n<li class=\"li4\">SHOW backers what they will receive using pictures (even if it is just a mock-up): people want to see what they will be backing, and this will help to swing many backers, allowing them to imagine enjoying the finished product<\/li>\n<li class=\"li4\">Ask yourself: Would this reward appeal to me (if I was a potential backer)?<\/li>\n<li class=\"li4\">Ask yourself: Is the reward priced fairly? How does it compare with what is available elsewhere (competitors\u2019 products \/ market value)?<\/li>\n<li class=\"li4\">Give yourself LOTS of extra time for production and delivery, and surprise your backers with early delivery (instead of annoying them by being late!)<\/li>\n<li class=\"li4\">Beware of changing your RRP after the campaign: the \u00a35 app that ends up on public release for \u00a31, or charging for access to something that will be available for free is frustrating for backers<\/li>\n<li class=\"li4\">Consider exclusives: offering limited editions, or certain rewards for a limited time. Treat your campaign like a pop-up type shop and generate excitement around your campaign related to this<\/li>\n<li class=\"li4\">Limit availability of your higher tier rewards (to just a few) to create greater demand<\/li>\n<\/ul>\n<h2 class=\"p1\"><\/h2>\n<h2 class=\"p1\">Crowdfunding rewards &#8211; Calculating your margin:<\/h2>\n<p>Spending time to calculate the\u00a0margin (profit) on each of your crowdfunding reward tiers is really important &#8211; that can mean the difference between actually raising money, breaking even, or perhaps ending up in debt after your crowdfunding campaign.<\/p>\n<p>The margin is the\u00a0<span class=\"hvr\">difference<\/span> <span class=\"hvr\">between<\/span> <span class=\"hvr\">the<\/span> <span class=\"hvr\">cost of producing your rewards (including the materials, time, and any other costs)<\/span>\u00a0<span class=\"hvr\">and<\/span> <span class=\"hvr\">the<\/span>\u00a0&#8216;<span class=\"hvr\">selling<\/span> <span class=\"hvr\">price&#8217; of your rewards to backers. If the costs of production are higher than the cost of the reward to a backer, you will end up in debt (or losing money) by delivering the rewards.<br \/>\n<\/span><\/p>\n<p><strong>Remember<\/strong> &#8211; sometimes the costs of production will go down when you produce a higher number of the rewards. For example, if you order\u00a010 badges from an online merch producer they might cost 50p each, but if you order 50 badges, this per unit cost may go down to 10p each, which would give you a far higher margin.<\/p>\n<table>\n<tbody>\n<tr>\n<td><strong>REWARD<\/strong><\/td>\n<td><strong>PRICE TO BACKER<\/strong><\/td>\n<td><strong>COST TO PRODUCE<\/strong><\/td>\n<td><strong>MARGIN<\/strong><\/td>\n<\/tr>\n<tr>\n<td>A thank you<\/td>\n<td>\u00a31<\/td>\n<td>\u00a30<\/td>\n<td>\u00a31<\/td>\n<\/tr>\n<tr>\n<td>2 x badges (+P&amp;P)<\/td>\n<td>\u00a35<\/td>\n<td>\u00a33<\/td>\n<td>\u00a32<\/td>\n<\/tr>\n<tr>\n<td>Basic Product\u00a0(+P&amp;P)<\/td>\n<td>\u00a329<\/td>\n<td>\u00a314<\/td>\n<td>\u00a315<\/td>\n<\/tr>\n<tr>\n<td>Customised Version<br \/>\nof the product<br \/>\n(+P&amp;P)<\/td>\n<td>\u00a375<\/td>\n<td>\u00a355<\/td>\n<td>\u00a320<\/td>\n<\/tr>\n<tr>\n<td>Superfan Hamper #1<br \/>\n(+P&amp;P)<\/td>\n<td>\u00a3100<\/td>\n<td>\u00a365<\/td>\n<td>\u00a335<\/td>\n<\/tr>\n<tr>\n<td>Superfan Hamper #2<br \/>\n(+P&amp;P)<\/td>\n<td>\u00a3100<\/td>\n<td>\u00a385<\/td>\n<td>\u00a315<\/td>\n<\/tr>\n<tr>\n<td>Patron Package<\/td>\n<td>\u00a31000<\/td>\n<td>\u00a3600<\/td>\n<td>\u00a3400<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h2 class=\"p1\"><\/h2>\n<h2 class=\"p1\">Crowdfunding rewards &#8211; Brainstorming Tips:<\/h2>\n<ul>\n<li class=\"p4\"><strong>Browse other projects in your category<\/strong><br \/>\nWhat are project creators offering as rewards? And at what pledge levels? How many people are backing each of the pledge levels? Which rewards are most costly for creators to produce? Which rewards are cheapest \/ easiest to produce? Which rewards have the highest margin?<\/li>\n<\/ul>\n<ul>\n<li class=\"p4\"><strong>Browse projects in other categories<\/strong><br \/>\nWhat things do project creators in other areas offer? In what ways to they present their rewards? Which rewards are the most attractive to you as a passing potential backer (rather than someone embedded in this community)?<\/li>\n<li class=\"p4\"><strong>Ask for help<\/strong><br \/>\nGather ideas and input from friends and family and (especially) from people in your target audience.<\/li>\n<\/ul>\n<ul>\n<li class=\"p4\"><strong>Try using &#8216;backer personas&#8217;<\/strong><br \/>\nUse data and market research to generate &#8216;<a href=\"https:\/\/en.wikipedia.org\/wiki\/Persona_(user_experience)\" target=\"_blank\" rel=\"noopener\">personas<\/a>&#8216; to help work out what might be attractive to your target backers, by understanding their lifestyle, their goals, desires, likes and dislikes.<\/li>\n<\/ul>\n<h2>Further Reading:<\/h2>\n<ul>\n<li>\n<div class=\"row\">\n<div class=\"twelve columns\">\n<p>Jamey Stegmaier (Jan 2013) <a href=\"http:\/\/stonemaiergames.com\/kickstarter-lesson-8-reward-levels\/\" target=\"_blank\" rel=\"noopener\">Kickstarter Lesson #8: Reward Levels<\/a>\u00a0&#8211; an in-depth discussion of some key points around designing valuable backer rewards.<\/p>\n<\/div>\n<\/div>\n<div class=\"row\"><\/div>\n<\/li>\n<\/ul>\n<hr \/>\n<p>Have I missed something? Do you have a great crowdfunding tip that I should include here too? Or examples of really creative crowdfunding rewards? Let me know in the comments below, or tweet me <a href=\"http:\/\/twitter.com\/RachelDobbs1\" target=\"_blank\" rel=\"noopener\">@RachelDobbs1<\/a> and I&#8217;ll include it in a future post!!<\/p>\n<p>You can read <a href=\"http:\/\/rachel.we-are-low-profile.com\/blog\/category\/crowdfunding\/\">more crowdfunding hints and tips here<\/a>, and check out this post on <a title=\"Building a crowdfunding team\" href=\"http:\/\/rachel.we-are-low-profile.com\/blog\/building-a-crowdfunding-team\/\" rel=\"bookmark\">Building your crowdfunding team<\/a>\u00a0for more ideas on how to get started.<\/p>\n<hr \/>\n<p><strong>New to crowdfunding?<\/strong><br \/>\n<a href=\"http:\/\/rachel.we-are-low-profile.com\/blog\/start-crowdfunding-beginners-guide\/\">Check out my quick start guide to crowdfunding!!<\/a><\/p>\n<p><a href=\"http:\/\/rachel.we-are-low-profile.com\/blog\/start-crowdfunding-beginners-guide\/\" target=\"_blank\" rel=\"noopener\"><img loading=\"lazy\" decoding=\"async\" data-attachment-id=\"1541\" data-permalink=\"https:\/\/rachel.we-are-low-profile.com\/blog\/start-crowdfunding-beginners-guide\/crowdfunding-cover-images-5\/\" data-orig-file=\"https:\/\/i1.wp.com\/rachel.we-are-low-profile.com\/blog\/wp-content\/uploads\/Crowdfunding-cover-images-5.png?fit=960%2C540&amp;ssl=1\" data-orig-size=\"960,540\" data-comments-opened=\"1\" data-image-meta=\"{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;0&quot;}\" data-image-title=\"Quick start crowdfunding beginners guide\" data-image-description=\"\" data-image-caption=\"\" data-medium-file=\"https:\/\/i1.wp.com\/rachel.we-are-low-profile.com\/blog\/wp-content\/uploads\/Crowdfunding-cover-images-5.png?fit=300%2C169&amp;ssl=1\" data-large-file=\"https:\/\/i1.wp.com\/rachel.we-are-low-profile.com\/blog\/wp-content\/uploads\/Crowdfunding-cover-images-5.png?fit=652%2C367&amp;ssl=1\" class=\"alignnone wp-image-1541\" src=\"https:\/\/i1.wp.com\/rachel.we-are-low-profile.com\/blog\/wp-content\/uploads\/Crowdfunding-cover-images-5.png?resize=267%2C150\" alt=\"Quick start crowdfunding beginners guide\" width=\"267\" height=\"150\" srcset=\"https:\/\/i1.wp.com\/rachel.we-are-low-profile.com\/blog\/wp-content\/uploads\/Crowdfunding-cover-images-5.png?w=960&amp;ssl=1 960w, https:\/\/i1.wp.com\/rachel.we-are-low-profile.com\/blog\/wp-content\/uploads\/Crowdfunding-cover-images-5.png?resize=400%2C225&amp;ssl=1 400w, https:\/\/i1.wp.com\/rachel.we-are-low-profile.com\/blog\/wp-content\/uploads\/Crowdfunding-cover-images-5.png?resize=800%2C450&amp;ssl=1 800w, https:\/\/i1.wp.com\/rachel.we-are-low-profile.com\/blog\/wp-content\/uploads\/Crowdfunding-cover-images-5.png?resize=300%2C169&amp;ssl=1 300w, https:\/\/i1.wp.com\/rachel.we-are-low-profile.com\/blog\/wp-content\/uploads\/Crowdfunding-cover-images-5.png?resize=768%2C432&amp;ssl=1 768w, https:\/\/i1.wp.com\/rachel.we-are-low-profile.com\/blog\/wp-content\/uploads\/Crowdfunding-cover-images-5.png?resize=600%2C338&amp;ssl=1 600w, https:\/\/i1.wp.com\/rachel.we-are-low-profile.com\/blog\/wp-content\/uploads\/Crowdfunding-cover-images-5.png?resize=945%2C532&amp;ssl=1 945w\" sizes=\"auto, (max-width: 267px) 100vw, 267px\" data-recalc-dims=\"1\" \/><\/a><\/p>\n<hr \/>\n<p><strong>Rachel Dobbs<\/strong> is one half of <a href=\"http:\/\/we-are-low-profile.com\/\" target=\"_blank\" rel=\"noopener\">LOW PROFILE<\/a>, an <a href=\"http:\/\/rachel.we-are-low-profile.com\/\">artist<\/a>\u00a0and\u00a0<a href=\"http:\/\/rachel.we-are-low-profile.com\/\">educator<\/a>\u00a0based in Plymouth, UK. Rachel works on a range of arts and education\u00a0projects, has a long-term interest in creative approaches to community development and\u00a0<strong>runs workshops<\/strong>, teaching &amp; <strong>training sessions<\/strong>\u00a0for a\u00a0range of formal &amp; informal groups including\u00a0students, arts practitioners and communities\u00a0\u2013 <a title=\"Contact\" href=\"http:\/\/rachel.we-are-low-profile.com\/contact\/\">contact me for more details<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Offering great crowdfunding rewards (for Kickstarter, IndieGoGo or Crowdfunder campaigns) can be a key way to involve your backers in the creative process, provide an incentive for people to back your project and allow backers to own the end product<\/p>\n","protected":false},"author":1,"featured_media":1081,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":"","jetpack_publicize_message":"","jetpack_is_tweetstorm":false,"jetpack_publicize_feature_enabled":true},"categories":[61],"tags":[14,23,37],"class_list":["post-1067","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-crowdfunding","tag-crowd-funding","tag-kickstarter","tag-series"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v17.8 - 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