Rewards are an important aspect of your crowdfunding pitch, they provide a soft return to investors and enhance their sense of involvement. They offer you the opportunity to maintain open communications with your new crowd of brand ambassadors.
The principle behind rewards is that their value to investors is more than the cost to you, a clever reward scheme can get a significant way towards paying back the value of the investment made by investors.
Rewards are ideally related to your business and should be as attractive as you can make them. They could be products or redeemable vouchers, memberships, certificates of ownership, website mentions, event invitations and loyalty enhancing items like branded sweat shirts.
Rewards are structured at levels according to the amount invested, an example of rewards in action, Kamm & Sons included the following in its fully-subscribed crowdfunding:
- Invest £50 and get a 5cl miniature bottle of Kamm & Sons
- Invest £200 and get a 50cl bottle of Kamm & Sons signed by Alex Kammerling
- Invest £1000 and get 3 x 50cl bottles signed by Alex Kammerling
- Invest £5000 and get a 50cl signed bottle and a bespoke cocktail created and named especially for you
- Invest £10000 and Alex Kammerling will host a cocktail masterclass for you and up to 10 friends at a London venue
- Invest £20000 and get two cases (12 bottles) and a cocktail party by Alex Kammerling for up to 50 people (mainland UK location)
Following your crowdfunding and the investment has been made in your company, you are fully responsible for distributing your rewards to the crowd as promised.