How Rewards Work

 

 

Startups can offer Rewards in exchange for cash contributions from Backers. Rewards are simply items of value that "reward" a Backer for supporting you.

Why offer rewards?

The premise of Fundable is to offer "value for value". Although some Backers may support your fundraise solely based on personal affinity, Startups on Fundable are focused on providing tangible value in exchange for each contribution they receive.

What’s a meaningful reward?

This is easy - anything that people will gladly pay for. For example, If someone is contributing $50, providing an item from your first production run will give backers access to a new and innovative product, and get more people excited to support your endeavors.

There are three typical categories of rewards that work well:

  • Pre-Orders: Giving Backers a copy of the product you're looking to produce is the most popular type of reward.
  • Services: When pre-orders aren't available, Startups can offer special services in exchange for support. We've seen everything from developers offering to write code for supporters, to Founders offering to make a home cooked dinner for fans and backers. You'd be surprised at how much capital can be raised just by offering to help others out as well.
  • Recognition (Swag): For smaller contributions, usually between $1 and $25 Startups tend to offer some sort of personal recognition, ranging from a mention on their Web site to a company-branded T-Shirt. People love to be recognized, and for smaller amounts it's a great trade.

How many rewards should I offer?

We suggest 3 - 8 tiers of Rewards to provide Backers with options. You should consider a small price point for those that just want to help out, a mid-sized price point that will typically be offered as part of a pre-order, and a large price point that offers extra special recognition for generous Backers.

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Fundable is a software as a service crowdfunding platform. Fundable is not a registered broker-dealer and does not offer investment advice or advise on the raising of capital through securities offerings. Fundable does not recommend or otherwise suggest that any investor make an investment in a particular company, or that any company offer securities to a particular investor. Fundable takes no part in the negotiation or execution of transactions for the purchase or sale of securities, and at no time has possession of funds or securities. No securities transactions are executed or negotiated on or through the Fundable platform. Fundable receives no compensation in connection with the purchase or sale of securities.