With rewards-based crowdfunding, people need to be smart and creative about what they give away in exchange for crowdfunding donations.
Tampa, FL (PRWEB) April 16, 2013
Crowdfunding expert, Kendall Almerico, the CEO of up-and-coming crowdfunding site ClickStartMe, released a new video in his popular online crowdfunding video series. Almerico's latest video helps crowdfunders by giving five expert tips on creating effective rewards to give in exchange for donations.
"With rewards-based crowdfunding," Almerico says, "People need to be smart and creative about what they give away in exchange for crowdfunding donations."
From the newly released video, here are the crowdfunding guru's five tips on coming up with great rewards for a crowdfunding project:
1. Offer low-end, personalized rewards that cost nothing but time. For smaller donations, a “thank you” shout-out via social media is quick and easy, but also gives the donor public recognition and is a great way to promote further awareness about the project.
2. Be sure the rewards “make cents.” The goal of a crowdfunding project is to raise funds, structure rewards so they match the dollar amount contributed and doesn't put the campaign in the red. “While this seems obvious," Almerico notes, "people offer rewards all the time that cost more than the donation!”
3. Don’t forget shipping and delivery costs. When deciding what reward goes with each donation amount, be sure to add in the cost of delivery on tangible goods. "People overlook this important added cost frequently," Almerico points out, "Shipping, handling and fulfillment can take a big chunk of a donation, so be sure to factor it in at the beginning."
4. Given that the most common crowdfunding donation is $25, and the average donation amount is $75, Almerico suggests putting considerable thought into what can be offered at these levels. "Find something really attractive to donors at both of those levels," Almerico says.
5. Be sure you have some big-ticket, high-end rewards. Larger individual donations allow funding goals to be reached more quickly, and unique rewards that clearly demonstrate appreciation for generosity are great for creating buzz. "Come up with some great experiences that involve you or your business," Almerico says. "Don't be surprised if someone is willing to donate $5,000 to go parasailing with you, or to be the ‘CEO for a Day.’”
Crowdfunding expert Kendall Almerico is the CEO of ClickStartMe, and is also known as an expert on The JOBS Act. Almerico is available for interviews and speaking engagements.