Thursday, November 4, 2010

4 Tier Rewards Of A Crowdfunding Campaign

The great Hypebot blog recently posted a nice interview with Yancey Strickler, the co-founder of Kickstarter, which is one of the leading crowdfunding platforms used by artists and bands today. While Yancey described many of the elements that work for a crowdfunding campaign, one of the best pieces of the article was about funding tier rewards. A funding tier is a level of investment, like $25, $50, $100 and $500 dollars.

One of the most important elements of a crowdfunding campaign has to do with the rewards that an investor receives for putting money into the project. Just getting credit and money back usually isn't enough, and Yancey had these suggestions (I've messaged the text a little for clarity) to make the campaign a bit more enticing.

1) The Basic Reward - If nothing else, the investor should receive a copy of the CD or a free download.

2) Limited Editions - For either the first 100 investors or the next higher tier, the investor receives a deluxe edition that's individually numbered and personally signed.

3) Share The Story - The next tier investor would receive something even more exclusive, like Polaroids (these certainly are a limited and rare item) from the studio, used guitar strings or drum heads, the coffee cup used by the artist, or some other personal item.

4) The Creative Experience - Bring the investor into the process itself by asking for his or her opinion on which version of a song or photo to release, bring them into the studio for background vocals or handclaps, or just invite them to sit in on a recording, photo session or video. The idea is to give an investor at the highest level a once-in-a-lifetime thrill.

None of these cost very much, yet they could mean the difference between someone investing or not, or investing in a more costly tier.

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