By Josef Holm
Founder & CEO @Tubestart.com, When it comes to planning a crowdfunding campaign, few things are more important (and trickier) than choosing and pricing your perks right.
By now it has been widely accepted that crowdfunding, unless for charity, is not an altruistic act of strangers giving strangers money. At its core, running a successful crowdfunding project is like running a marketing campaign and needs to be treated as such.
With the exception of your close friends and family, backers generally want something in return for their contribution. You need to have a good range of perks and prices, keeping in mind that the majority of contributions people make to crowdfunding campaigns are in the $5-$50 dollar range with $25 perks statistically hitting the sweet spot with most backers.
The higher priced your perks, the more exclusive they usually are. For example, the producer credit in a crowdfunded indie film can only be sold once. How do you put a price on a perk as exclusive as this? How do you determine if such a perk can be sold for $500, $5,000 or $15,000?
You could look at similar campaigns and determine the average price at which these perks were sold for, or you can do something radically new:
Perk Price Crowdsourcing: Let the Crowd Determine How Much to Pay.
On Tubestart.com video creators and filmmakers can crowdfund their productions using innovative tools such as hands free perk fulfillment, live streaming events or our latest addition, biddable perks.
What are biddable perks? Tubestart has combined the engagement boosting characteristics of an online auction with crowdfunding perks. Instead of putting a price in your on-of-a-kind perks, you can let the crowd decide how much they are willing to pay for it. You can set a minimum starting bid under which you aren’t willing to sell your perk, and of course an auction end date. Whoever places the highest bid north of your starting bid will win the auction.
The functionality of this global crowdfunding innovation encompasses many of the features found on auction sites, including setting a max bid amount and auto bidding. On your project page, biddable perks show the highest current bid for your perk, and backers can set their highest bid amount in which case the system will place automated bids in $1 dollar increments for the backer.
When running a crowdfunding campaign, every dollar counts and by allowing your backers to choose how much they are willing to pay for your most exclusive perks you will maximize your campaign’s profit.
Visit https://www.tubestart.com/creators to learn how video creators and filmmakers use Tubestart to raise money for their productions.