This section will take you through the major steps of how to approach rewards-based crowdfunding, and gives you some more detailed tips and pointers. Please note, that these suggested steps are offered as guidelines only. You might find each step more or less complicated, depending on your project, the size of your team, and the amount of time you are able to commit.
The early days of your crowdfunding campaign should be dedicated to looking into rewards-based crowdfunding and preparing your offer. You should:
If your application to the platform is successful, you should be able to tell your story in a compelling way, with easily understandable descriptions of your product or service. But this is not easy: you will certainly need feedback from friends and potential customers to keep you on track. It’s important that you tell your story in a logical but passionate way, and do it in a visually pleasing, engaging, format.
Some of the most effective campaigns include a very short two-minute (or less) video. In it you should clearly:
Your rewards need to be exciting; at least one of them should be unique to the crowdfunding campaign, something only your backers will have. Research other campaigns for inspiration. Don't forget that pre-selling your product is already a good reward for your crowd. It’s more difficult if your business offers a service, rather than a new product, but it’s about getting creative and coming up with rewards that your crowd will like and want.
During the fundrasing period you should be active with the crowd, online and offline. A rewards crowdfunding campaign works best if consumers can see the passion behind the project or business. You should approach the project with energy and enthusiasm.
Don't forget: If you intend to pre-sell your product, you might have to register as a VAT payer. Check with your local authority.
If you have been successful in raising your funds you can’t just take the money and move on: there is much more work to be done. If you haven’t reached your target, please don’t worry. You can learn from your mistakes and try again.
Remember to thank your crowd, and maintain connections with those who were particularly interested in your product. If you were not successful, ask for tips on how to improve.
If you were successful, ensure that you can deliver on your promises of rewards to all your backers in the time frame promised by creating a time plan. Finally, remember to conduct all administrative tasks.
Download an example rewards crowdfunding case study: Carla’s Designer Lights