Perk Types & Expense
Perks are rewards that you offer your investors to “sweeten the deal” and make them feel good about investing. They can also shorten the investor acquisition cycle. Now that you have identified your investor types and surveyed a sampling of contacts, you likely have a theory about what motivates your supporters. It’s time to develop/choose the most compelling rewards that fit your budget. It’s also a good time to consider how to schedule your perks for best advantage.
Common Types of Perks
Memorabilia: Copies of the Project, Limited Edition Albums, Memento
Participation: Collaborations, Experiences, Events
Discounts: Special Founder Memberships, Coupons, pre-paid services
Bragging Rights: Public Recognition Announcements, “buy-a-brick”
Special Access: Exclusive Content, VIP Networking, Status Flair
The perks should coordinate with Investor motivation:
- Pre-paid Services
- Transferable Gift Cards,
- VIP Networking Opportunities
- Naming Rights
- Limited Edition Collectables
- Special Edition / Luxury Proof of Support Swag
- Conversation Starters
- Flare / Badges
- Experience events
- Proof of Ownership Mementos
- Public Recognition
- Impact Video / Letters
- Proof-of-Support swag
- Acknowledgement of fulfilled commitments
- Priority Product Access (first run)
- Public memorial (buy a brick)
- Proof of Community Improvement
- Ribbon Cutting events
Brainstorm all possible perks you could offer. Enter your list into the Campaign
Rank them in order from inexpensive/easy to expensive/difficult. Also note the relative popularity from your survey.
Estimate the cost to fulfill each perk if 1, 10, or 100 people choose this perk including any cost of goods “sold,” e.g.
shipping, payment, etc.
The Campaign Rewards Manager sheet will help you select, budget, and manage campaign perks.
P73 Embed / link Campaign Rewards Manager sheet or interactive equivalent
Compare the Campaign Rewards Manager with your Investor and Network Contact lists. Plug in perk values/costs to match potential investment amounts. Evaluate if it is financially plausible to offer perks valued at X for a hypothetical investment of Y. For example, if a perk will cost you $500 to offer, and can only bring in $1,000 from investors, then you should revisit your other perk options for that category. Ideally, the perk cost should be a maximum of 2-3% of the investment. There are sometimes good reasons to raise this to 5-10%.
Fundraising can be the very first touchpoint potential customers will have with your business. Therefore, it’s important to protect your personal and professional reputation by planning to keep your promises. This means you will need to budget appropriately within the business. It’s also CRITICAL to use the campaign funds for the purpose stated in the business plan.
Do not abuse the goodwill of your supporters by using campaign funds for exotic trips or paying off debt if those things aren’t in the plan they bought-into. Document your faithful following of the business plan and include those details in updates.
Review the Campaign Rewards Manager sheet to create a line item for Perks – Marketing in your overall business budget. Remember to include any discounts that you offer.
Note: Discounts are costs that
reduce profits when they