A Unique Kickstarter Reward Tier Tactic

Key Concepts

• $1 Reward Technique: A crowdfunding reward tier where backers pledge $1 to gain access to add-ons, allowing them to customize their own bundles.
• Add-ons: Additional items or rewards that backers can add to their pledge, typically at an extra cost.
• Backer Count: The number of individual people who have pledged money to a crowdfunding campaign.
• Social Proof: The psychological phenomenon where people are more likely to take action if they see that others have already done so.
• Kickstarter Algorithm: The set of rules and factors that determine how Kickstarter ranks and promotes projects.
• Stretch Goals: Additional funding targets that, when reached, unlock new rewards or features for backers.
• Analysis Paralysis: A state of over-analyzing a situation, leading to inaction or poor decision-making.

$1 Reward Technique Explained

The video introduces a new reward tactic for crowdfunding campaigns, specifically the "$1 reward technique." This technique involves offering a reward tier where backers can pledge just $1 to gain access to add-ons. This allows them to create their own customized bundles, addressing the common frustration of backers not finding a pre-made bundle that perfectly suits their needs.

Specifics:

• Backers pledge $1.
• They gain access to all available add-ons.
• They can mix and match add-ons to create a custom bundle.
• Unique add-ons, not available in standard bundles, can be offered.
• A clear and informative reward graphic is crucial to avoid confusion.

Example: Brandon Sanderson's Kickstarter RPG campaign, which raised over $15 million, successfully used this technique.

Benefits of the $1 Reward Technique

The video outlines several benefits of using the $1 reward technique:

1. Increased Backer Count: A lower barrier to entry attracts more backers, boosting social proof and making the campaign more appealing to new visitors.
2. Enhanced Community Participation: Backers can only comment on a Kickstarter campaign after pledging, so a higher backer count leads to more community engagement. This also positively impacts the Kickstarter ranking algorithm, increasing the chances of being featured as a "Project We Love" or trending in the charts.
3. Pledge Upgrades: Backers who initially pledge $1 may be more likely to increase their pledge later on as they see new add-ons or rewards that interest them.
4. Long-Term Relationship Building: The technique allows campaign creators to gather contact information and build relationships with backers for future campaigns. Even if backers only pledge $1 initially, they can be targeted with marketing emails and encouraged to participate in future projects.
5. Opportunity to gather feedback: Creators can survey $1 backers to understand why they didn't pledge more and what add-ons they would like to see.

Considerations for Implementing the $1 Reward Technique

The video highlights several important considerations for implementing the $1 reward technique effectively:

1. Prominent Display: The $1 reward tier should be clearly labeled and visually appealing, ideally with a graphic that showcases the available add-ons and explains how backers can customize their packages.
2. Impact on Stretch Goals: Consider how stretch goals might affect $1 backers and use this as an incentive for them to share the campaign and encourage others to back it.
3. Express Gratitude: Show appreciation to $1 backers and use surveys to gather feedback on their experience and preferences.

Who Should Use the $1 Reward Technique?

The video discusses which types of campaigns are best suited for the $1 reward technique:

• Creative Categories: The technique is particularly effective for campaigns in creative categories, such as tabletop games, where there are often many different items and variations available.
• Campaigns with Many Items: If a campaign has a large number of items or components, the $1 reward technique can help avoid "analysis paralysis" by allowing backers to customize their own packages without being overwhelmed by too many pre-made bundles.
• Technology Gadgets/Gizmos/Design Products: The video suggests that this technique may not be the best approach for new inventions in the technology or design space, where it's often better to focus on a few core offerings and a clear pre-order option.

Resources Mentioned

• Kickstarter Launch Formula (Book): A comprehensive guide to launching a successful Kickstarter campaign, available on Audible and Amazon.
• Free Kickstarter Course: A step-by-step course on growing backer numbers and maximizing funding, available at crowdcrux.com/kickstarter.
• Fulfillrite: A turnkey solution for storing, packaging, and shipping Kickstarter rewards.
• One-on-One Coaching Call: Personalized coaching with Salvador Brigman to discuss specific campaign needs and challenges, available at crowdcrux.com/coaching.

Conclusion

The $1 reward technique is a valuable tool for crowdfunding campaigns, particularly in creative categories with a wide variety of items. By lowering the barrier to entry, increasing backer count, and fostering community engagement, this technique can help campaigns reach their funding goals and build long-term relationships with their backers. However, it's important to carefully consider the specific needs of each campaign and implement the technique strategically to maximize its effectiveness.