Struggling to get your small business off the ground? You could do away with the stressful bank loan appointments and endless investor pitches and go straight to the people you’re hoping to reach through your product. Crowdfunding is an exciting, modern way to raise money for your project. It gives you the opportunity to flex your creative muscles and market your business while building a base of micro-investors.
If you’re already sold on the concept of crowdfunding but are concerned about the issue of attracting an audience to meet your funding goals, a reward-based system may be exactly the solution you’ve been searching for.
The concept of reward-based crowdfunding originated on US-based sites like Indigogo and Kickstarter, but it’s now its all the buzz worldwide. It’s truly global, with small businesses and ventures around Australia seeing great success through our site. Getting your strategy right is key, but once you’ve nailed the basics you’re sure to hit your goals with ease.
Reward-based crowdfunding is simple in its essence.
- First, you set up your crowdfunding campaign page on ReadyFundGo. That’s the easiest part.
- Then, you can start brainstorming creative rewards to offer your supporters in return for their investment. We’ve seen the highest levels of success from campaigns that offer roughly 9 different rewards options to their supporters, so aim for that number to be safe.
- Once your campaign reaches its target fundraising figure, you can access your supporters’ contact details through your ReadyFundGo campaign dashboard to arrange their reward delivery.
Coming up with the right rewards for your campaign is crucial, so this is the moment to truly get creative and think outside of the box. If a potential investor checks out your page and doesn’t see anything that truly appeals to them in the rewards offerings, they may click away despite liking the fundamental concept behind your business. Add tempting and unique rewards to catch their attention, and they’ll be far more likely to send some cash your way.
When you’re choosing the rewards you’ll offer your supporters, remember to keep a wide range of budgets in mind. Small sum donations may seem minor but they can quickly add up once the word spreads.
The reward itself can be anything you like. A few ideas that have worked well in the past include:
- early copies of the product you’ll be selling before they become available to the general public
- a voucher to use at your business
- inside access to an event or experience
- personal credits for pledging
Ensure you offer a good amount of variety to ensure that your rewards appeal to a broad range of potential supporters. These should be rewards that you can deliver, particularly if you choose to run a “Take What You Can Get” campaign. And don’t forget that the cost of producing and shipping the reward should be estimated and added to your fundraising goal.