Lesson 4: Building Your Rewards Strategy
Watch Time: 13 minutes | Work Time: 1 hour
SEction 1: What are crowdfunding rewards?
Crowdfunding rewards are the products and services you offer through your crowdfunding campaign, at different price points, in exchange for monetary contribution from your funders.
Crowdfunding rewards can be your product, your service, merch, fun swag, your side hustle, and basically anything you can monetize on your campaign page to get your crowdfunding campaign funded!
Your rewards should speak to the interests and needs of your network, and your network map that you just did will tell you who your backers are and what they might want to buy.
Figuring out what rewards you are going offer and the price you will sell them at is how you determine your campaign goal amount. If gross revenue and goal amount don’t match for campaign, there is work to be done to expand your network or rethink your rewards strategy to get those numbers to line match. Remember, don’t pick a goal out of thin air!
Campaigns That Nailed It!
Campaigns That FAILED It!
Again, we are not going to call anyone out for failing, but we are going to give you a list of “What NOT to do’s” when it comes to your rewards:
AVOID THESE THINGS:
Not having reward levels that are inclusive of people of all economic levels. Most normal people do not have an extra hundo just hanging around to put into your campaign. The most common contribution amounts are $25 and $100, so make sure to have cool and inviting options at $25, $50, and $100. Then you can go up from there.
Not having any rewards. If you think that all you need is the “Monetary Contribution” reward, and people are going to be enthralled by that, you are sadly mistaken, my friend. People like STUFF. A token of your appreciation for them backing your campaign. Get creative. If you need help coming up with creative rewards, especially for our B2B friends, book a 30 minute session with a private coach. You will make that money back with one backer.
Rewards descriptions are too long and unclear. Reward descriptions should be short, bullet pointed, and tell the backer exactly when to expect the item to be sent out to them. Transparency is key.
Not shipping rewards on time. This is the cardinal sin of Crowdfunding, and we do not have time for this on iFW. Listen, stuff happens especially in manufacturing, and delays are to be expected. As long as you are keeping your backers closely updated, it’s all good. Just make sure you communicate early and often.
section 2: How to build your rewards strategy using the iFundWomen Method Rewards P&L
The Rewards P&L (Profit & Loss Statement) in your iFundWomen Method Playbook will help you organize your rewards strategy and play around with your pricing.
The P&L factors in your cost of goods, iFundWomen fees and our payment processors fees. This allows you to figure out the perfect combination of rewards and price points that get you to the amount of money you need to raise.
TASK: Start filling in your Rewards P&L in your iFundWomen Method Playbook.
section 3: Rewards tips and tricks
Whether you have a product or service-based business, we have some tips on how to strategically build rewards for your crowdfunding campaign:
Don’t reinvent the wheel. There’s a tab within your iFundWomen Method Playbook with some reward ideas for you to check out. You can also look through the campaigns on our platform and figure out how to customize other people’s rewards for your business and network.
Identify a featured reward. What’s the main reward you’re focused on selling? That should be your featured reward so it’s the first thing people see on your campaign page. You can switch out your featured reward throughout your campaign.
Figure out your superpower. What’s the thing your friends are always asking for your help with? Are you a really great organizer? Are you a social media whiz? Monetize that side hustle through your campaign!
Evenly distribute price points. We recommend about 6-8 rewards at all different price points. You don’t want someone to have to take the time to choose between two different items at the same price point.
Offer services or experiences with low cost of goods sold (COGS). You want to make money off of this campaign so be cognizant of how much money you’re spending on your rewards.
Keep your network in mind. We could get on the phone and come up with the coolest reward, but if no one in your network wants to buy it, it’s not the right reward for your campaign.
Backers want to give you cash? No problem! You can easily add it to your campaign page as an Anonymous Backer to bring you closer to hitting your goal! Watch the video at 1:46 to see exactly how to create an Anonymous Backer account.
TASK: Check out the “Reward Ideas” section of your iFundWomen Method Playbook for inspo.
section 4: Rewards Fulfillment
FULFILLING YOUR REWARDS #NotAPaidAd
Ok, so you are offering “merch” / “swag” / branded stuff that you need to get produced. iFundWomen is not affiliated with any of the companies below, however we have purchased swag from these sources with good results. ALWAYS ORDER A SAMPLE FIRST!
YOUR BACKER REPORT
Your Backer Report is a downloadable tool that helps you keep track of who is contributing to your campaign and which reward they purchased. When it comes to reward fulfillment, it’s important that you remain transparent with your funders about when they expect to receive their rewards.
Things happen. If an issue comes up that prevents you from delivering the reward on time, be sure to keep your backers up to date. People are pretty understanding when you keep them in know.
iFundWomen Recommends: Download your Backer Report periodically throughout your campaign, so you can send out thank you notes ASAP. You’ll also want to create a form that you can send in the note to collect shopping address and any additional information you may need like sizing.