1. Check the Rules on Kickstarter
Before doing anything, take a second to read through the types of rewards that are prohibited on Kickstarter.
Don’t worry! If you find that any of the core perks that you were going to offer are not allowed on the platform, you can always look into Indiegogo, another crowdfunding platform, or browse around Kickstarter to get an idea of the types of rewards that other projects are offering.
2. Brainstorm, brainstorm, brainstorm.
There are four main types of rewards:
- Experiential – You might promise to do something or organize some kind of cool activity. The goal here is to make an amazing memory for your backers.
- Prototype or product – Your backers receive the end product that they supported. It could be the product that will one day be available for public purchase or a limited edition version of the product.
- Accessories and enhancements – These are items that add to the positive experience of backing your project. Backers get awesome swag, equipment, or additions to the core product. It’s best to have accessories or enhancements that are highly related to the core project.
- Involvement – When claiming these rewards, a backer might get to have a character named after them or be able to contribute a line of dialogue.
It’s likely that your first ideas won’t be the best. Set an hour aside to fill up an entire page with reward ideas, and don’t be afraid to come up with crazy or silly ones that you think your backers might like.
After you’ve finished, ask a friend or potential backer who is interested in your project to pick out the top 5 that they like most and why.
It will give you an idea of the types of perks that your community might find interesting. Don’t forget to include pricing to get feedback on this variable also.
I’ve brainstormed a few perks that you can consider for your project and if you decide to launch on Indiegogo, here are a few more ideas.
3. The power of exclusivity
Do you remember hearing about how Hostess, the maker of Twinkies, was going out of business? I don’t know about you, but a lot of my friends started stacking up on Twinkies.
Why? There were only going to be a limited number iconic Twinkies left and then they’d be gone forever!
Designing a reward tier or version of your product that is exclusive gives lurkers a reason to become backers. There is no longer that excuse:
“Oh, I’ll get just get one when it’s up on their website.”
Tomorrow, the product will be different and cost more, but today, backers can get in on an exclusive deal to be one of the first owners of your amazing widget.
I think that Eric Ries did a very good job of this with his book on entrepreneurship, which attracted 9,677 backers.
4. Simplify your offering
Want to know the recipe for failure?
Trying to please everyone.
You’re going to get suggestions from friends, family, and target backers to change or alter your reward tiers leading up to the launch of your Kickstarter campaign.
Your job is to filter out the good ideas from the bad.
In my interview with Max from BackerKit, we came to the agreement that the one of the top reasons that crowdfunding projects have fulfillment difficulties is because of complex rewards.
Remember that crowdfunding isn’t ecommerce. You’re going to have a chance further down the road to offer your product in different colors or styles. Right now, the focus should be on the first version.
Make it as easy as possible to bring this new product into the world and get it into the hands of your backers as soon as possible.
5. Write down all the costs
This is the least fun part of planning a Kickstarter. You gotta break out that excel spreadsheet.
How much will shipping be?
What happens if you’re over funded?
Where could things go wrong?
List out every input cost that will go into fulling your project’s rewards. You don’t want to end up losing money because you need to make up for a miscalculation.
Don’t forget to beware of these common pitfalls.
6. Yes, pledges count as income (sometimes).
The majority of your pledges will be considered taxable income, though you must consult an attorney and tax accountant for verification.
Although this won’t directly impact a backer’s experience throughout the duration of your campaign, it will affect your business and therefore your ability to capitalize on opportunities or make good on future promises.
Be smart and plan ahead.
7. Wording matters
Does copywriting affect purchases made on your website? Yes.
It also affects backer behavior. It can determine whether a backer backs at one of your upper tiers or not at all.
Take a second to browse around Kickstarter and look at how other successful campaigns in your categories have worded their reward tiers.
When in doubt, revert to simplicity and clarity. The worst feeling that a backer can have when looking through your rewards is confusion, because confusion begets inaction.
8. Market each tier differently
Someone who supports your project at the $5 tier has a different motivation and mindset than a backer who pledges at the $100 tier.
When you’re trying to secure a supporter at the $500 tier, you’re not going to be using the same language or call to action as the friend that you’re asking to back your project at the $25 tier.
Work backwards. What will upper tier backers care about most? How will you need to change your pitch for these backers or what will you need to emphasize?
9. Introduce new perks or reward tiers
The Reading Rainbow Campaign did a great job of this.
As long as backers haven’t pledged to a reward tier, you can still edit it, modify it, or delete it. You can also introduce new tiers.
Adding new reward tiers are one way of maintaining momentum throughout the duration of your campaign and giving existing backers more ways to become involved in your project.
What project are you planning?
Let me know in a comment below!
