If you are looking for crowdsourcing reward ideas, you are in luck. Scoutmine published a list of rewards that you could offer to your backers. These ranged from a virtual hug to a night out with the creators, a tree planted in your name, and experiences like a trip to the company headquarters or a brain-picking session. In this article, we'll take a look at the structure of a rewards campaign and discuss how to use it for your own.
Crowdfunding rewards are a way to show appreciation
If you've gotten this far into your crowdfunding campaign, it's likely that you've noticed that some backers are looking for rewards. While branded merchandise is nice, it's not always the best choice. Instead, focus on perks that enable backers to try out your products or services. Discounts, vouchers, and coupons are great ways to reward your backers, and can also help you cover immediate business expenses. By providing these perks, you can make your backers fall in love with your product or service and convert them into loyal customers.
In addition to tangible rewards, you can also offer special services to your backers. Developers can write code for your project, while founders can prepare home-cooked meals for supporters. These rewards are ideal for the entry-level crowd, and personal recognition can include a shoutout on your website or even a t-shirt. The possibilities are endless! If you're unsure about what to offer, try these ideas.
They are an inexpensive option for creative businesses
There are many types of rewards that can be offered through a crowdfunding campaign, including merchandise and services. Pre-orders are a popular option, and are a great mid-level reward that allows backers to see their contribution in action. Other rewards are services, such as home-cooked meals for backers or code writing services for supporters. The benefits of offering a rewards campaign are numerous, so an entrepreneur should explain why their supporters would benefit from the support they provide.
When creating a crowdfunding campaign, be sure to consider your goals and time your income with expenses. While a $5 donation can result in a thank-you note, a $100 donation typically yields a more personalized reward. A jewelry business owner might give back some of their jewelry collection, or allow backers to pre-order pieces from their collections. Whatever your goal, crowdfunding rewards can be an affordable option for creative businesses.
They aren't a good option for businesses
When crowdfunding rewards, the entrepreneur should explain what the company will use the funds for. This money could help the company pay for research and development, recruitment of key personnel, legal and accounting fees, and operating costs. Alternatively, crowdfunding rewards can be equity-based, which allows contributors to become part-owners of the business and receive a financial return on their investment. Typically, equity owners receive a percentage of the profits as dividends.
They require high credit scores
If you've ever wondered whether to raise funds through crowdfunding reward ideas, then you've come to the right place. Unlike traditional small business financing, reward crowdfunding doesn't have as many strict requirements. You don't need a high credit score, collateral, or experience running a business. You can even use this method if you're just starting out. There are no credit checks or collateral requirements, and you don't need to have previous business experience to qualify for a reward crowdfunding campaign. You can even apply with an idea that you've had for years, and reward donors with the gift of a product or service, which will eventually turn into a tangible prize.
They aren't the best option for entrepreneurs
There are plenty of different ways to fund a project. While equity-based crowdfunding is the best method for startups, pre-orders can be a good mid-level reward that allows backers to experience the impact of their contributions. Alternatives to equity-based crowdfunding include services like home-cooked meals or code writing. Entrepreneurs should carefully consider the benefits of their funding options. Then, they can decide which form of crowdfunding is best for their project.
