Offering great rewards are key to a successful fund raising campaign because they further entice sponsors to support an idea, and they’re a great way to thank people for their support. Here are a few useful tips on rewards that that new and potential project owners may find useful:
They can be anything
The best thing about offering rewards is that they can literally be anything you like as long as it’s related to the project idea, or the people involved. For example, tickets to your concert if you’re an artist, credits at the end of your film if you’re a film maker, a workout program if you’re a personal trainer or a secret recipe if you’re a chef.
The main thing to keep in mind is the more creative your rewards are, the better! Make them a fun and meaningful reflection of your project, and throw in a little personality when you can. And if you don’t know what to offer as rewards, it never hurts to just go ahead and ask your potential sponsors what it is that they would like in exchange for their support.
In some instances, projects will be designed to develop or introduce a new product or service. Consider this an opportunity to pre-sell your idea and start accumulating funds now, so that you can get your idea up and running and continuously provide the product or service to your customers later. Sponsors will also get the satisfaction of knowing that their support literally helped bring a great idea to fruition!
Everyone loves a discount. And since people are supporting you in advance for your idea, offering a discounted price on your reward, compared with the regular price of your product or service once launched is a great incentive for supporters who believe in your idea.
If possible, offer up an exclusive or special version of your product or service specifically for the purpose of raising funds for this project. If your product or service is really that neat, it’s even better if limited quantities of a special edition are available. For example, products in limited edition colours, or provide your service in a one-off and unique location. Again, creativity is key.
It’s great to earn the sponsorship, but don’t forget to consider the cost of fulfillment! In addition to the cost of producing your product or service, you’ll need to consider other things such as shipping, PayPal fees (3%) and the associated Springboard posting fee (5%). For instance, if your goal is to hypothetically raise $1000, and you know that you’ll incur $80 in fees (3% PayPal + 5% Springboard), you may want to consider raising $1080 total in order to receive your $1000 goal.
A reward may be of more value to someone if it’s tied into a goodwill component. For example, one of our projects called KOLS touques has included book donations for impoverished children as a tie-in to their rewards.
People will have different preferences in terms of the amount they wish to sponsor a project. Therefore it’s important to offer multiple levels of rewards, and in doing so, ensure that you’re earning a higher profit on each one. It’s easy to offer a higher-level sponsorship, but if your profit after fulfilling your reward obligation is equal to or less than the sponsorship level below it, you may want to raise that sponsorship value, or find a lower cost reward.
Also, keep in mind that the “super supporter” may exist. A super supporter is somebody who might be generous enough to provide you with a ridiculous, over-the-top sponsorship amount. Maybe they’re a parent our spouse. Or perhaps they’re a stranger that just really buys into your idea. In either case don’t be afraid to put that one, high-priced reward out there because you never know who may bite!