Digital rewards make a lot of sense for crowdfunders. They are cheap to produce, scalable, and the costs associated with them are often very low.
I wrote a piece covering their benefits earlier this year. What I want to concentrate on today is the ways that you can distribute your digital content to your backers.
Cloud storage
Cloud storage allows you to store and access files over the internet. You are able to host your files in one central location, and allow people to download or sync them.
This can be very handy for distribution of most file types. I have backed many projects who simply use cloud storage and an email to distribute their digital content.
This is a solid choice for distributing photos, PDFs, documents, spreadsheets, music, video and zip files. Some services allow you to password protect your content, allowing an extra layer of protection for you.
For more information on selecting the best cloud storage option, I’d recommend these 3 links:
- Comparison of online backup services (Wikipedia)
- OneDrive, Dropbox, Google Drive, and Box: Which cloud storage service is right for you? (C|Net)
- The Best 10 Cloud Storage
CreateSpace
CreateSpace is an Amazon-owned company that allows you to format and self-publish your content (books, CDs and movies) through Amazon services.
You’re able to publish both the digital version AND the physical version through CreateSpace: meaning it’s a one-stop shop for producing both your digital and physical rewards if you are offering physical books, CDs or DVDs.
You are then able to purchase and distribute copies of your DVDs or CDs at cost.
CreateSpace take a commission from your sales on Amazon, so the set up and ongoing distribution costs are minimised.
GumRoad
GumRoad allows you to host and sell any digital file. They work on a commission-base.
You can create a code that will allow your backers to download any file for free. Stamping tools can also be used to digitally ‘stamp’ your content to reduce the chances of piracy.
You will need to create your own marketing tools as there is no marketplace. You link directly to your product page.
PDF Distribution
You can easily use cloud storage for PDF distribution, however I would recommend a different option.
Mailchimp
Mailchimp will host PDFs which can be linked within an email. The benefit of Mailchimp over regular cloud storage is that you will get much clearer analytics around who has accessed the file.
You can check out this article to find out more about how to host and distribute files using Mailchimp.
Video Streaming
Streaming video is video that is downloaded as it is watched. It is not saved to a user’s system by default. Streaming allows you to retain the most ownership and create the best revenue system from your content – meaning that in the long term, it is often the best option.
Some services allow you to host HD video. Others allow you to password protect your content – or to even sell it within a marketplace.
Below I have listed the three most popular options for streaming video distribution. A full list and comparison of video hosting options is available on Wikipedia.
Vimeo
Vimeo is typically the hosting site of choice for professional film makers. It allows you to host HD Videos, and offers password protection at all membership levels.
Pros: HD video streaming, password protection. Vimeo Pro members can access a worldwide distribution system, meaning you can monetise your content. Backers can be given a code allowing free access to the content they helped you produce. No third-party advertising on videos. Full analytics are available on paid plans.
Cons: The amount of content you can upload is restricted at all membership levels. To truly harness the power of Vimeo, you need a Vimeo Pro membership which costs $199/year (a cost that will need to be factored into your funding goal).
YouTube
YouTube is the world’s second most popular search engine (after Google). It is an ideal distribution channel for content that is intended to be free-to-view – such as webseries’ or instructional videos. Your content can be monetised in the long-term through advertising revenue.
Pros: Free to upload to. Subscription feature allows for fan-building. Ability to set private videos for backer-only access. Best option if you want to be found by new fans through new content. Allows for revenue generation through advertising.
Cons: Basic privacy controls. Advertising will be shown on, around, and after your content. Analytic information is typically quite basic.
Indiereign
Indiereign is specially designed for indie filmmakers – and has tools designed with crowdfunding in mind.
They have a partnership with Indiegogo that allows for additional promotional support during your crowdfunding campaign.
Pros: Allows you to moneytise your content beyond your campaign by providing rental and purchase options to viewers. Inbuilt social sharing tools. Full analytic tools including sales and conversions. Can be used to sell and distribute any type of video.
Cons: Payments are currently handled through PayPal – which is pretty notorious for being difficult to deal with sometimes. There is a 33% fee on each sale (30% to Indiereign and 3% to PayPal).
eBooks
If you’re giving away an eBook reward option, then it helps to have an easy way to distribute it to all your backers.
eBooks come in many different formats depending on your backers’ reader. If your book is only available on Amazon, then it could alienate your Kobo, Nook, iPad and Android-based readers.
You can format for each reader at a low cost using an outsourcing platform such as elance or Fiverr. In doing that, you can use cloud-based distribution to allow your backers to download the format most suited to their device.
But if you want to make money in the long term, then a distribution partner may be your best bet. Getting yourself onto each and every distribution platform takes a lot of time, effort, and money. If you choose to get yourself into each and every online book store then you have a lot of work ahead of you.
A distribution partner will take care of the file conversions for each different device, and allow you to manage your book and sales over all platforms from one central location.
Here are some of the most popular distribution partners.
Smashwords
Smashwords do not charge up-front fees for their services. Instead they take a cut from each copy sold once your book is listed on the sales platforms.
Using Smashwords gets you onto every major platform including Amazon, iBooks, Barnes and Noble, Kobo and Scribd. You’ll even get into public libraries worldwide through their library services.
Pros: Upload one file, and make it available on all platforms. Commission-based. Has own marketplace that allows “free” coupon codes for sending out backer rewards. Backers can choose the format that suits them best. Free ISBN. Major platforms and library service distribution included.
Cons: You’ll need to manually generate and send individual redemption codes to your backers. No marketing or editing support.
Find out more about Smashwords.
Draft2Digital
Draft2Digital is another platform that works on a commission-base. Upload your book and they will take care of the formatting and submit to some of the biggest sites around.
Pros: Upload one file, and make it available on most platforms. Commission-based. Ability to print your book to paperback through Amazon CreateSpace. You can download converted files to send out to backers. Free ISBN.
Cons: Does not allow you to send out codes and coupons. Does not support creative commons licensing. No editing or marketing support.
Find out more about Draft2Digital.
Kindle Direct Publishing (KDP)
KDP is Amazon’s direct publishing service for Kindle. Additional editing, formatting and marketing support is available through CreateSpace.
Pros: Free. You keep full ownership of your content. Your book will be listed on the world’s largest distribution platform (Amazon). You can create trade paperbacks from your files through CreateSpace.
Cons: You need to format your files. You will need to list individually on other distribution platforms.
BookBaby
BookBaby is a flat-fee publishing service. They do not take an ongoing commission from your sales.
Pros: Packages cover formatting, editing and distribution. Editing and cover design packages are also available. Ability to print physical books. No ongoing charges. Major platforms and library service distribution included. Significant marketing support.
Cons: Up-front costs can be substantial
Audio and music
There is a good chance that if you’re a musician, you already have some excellent distribution channels set up. The independent music industry is the one that has embraced digital distribution in the biggest way.
Cloud Storage
You can always set up a folder containing your MP3s and send them directly to your backers to download. Cloud storage is a cheap and easy solution for audio and music distribution.
BandCamp
BandCamp allows you to market, sell and distribute your music directly to fans. It is one of the most popular music distribution systems on the internet.
Pros: Enables new fans to discover your work. Allows ongoing sales. Allows you to sell physical CDs, merchandise and vinyl. You can set and send discount codes to allow backers to download their rewards for free.
Cons: Does not provide licensing support. No distribution networks beyond the BandCamp platform. Charge 15% on all sales.
Find out more about what BandCamp offers creators.
CDBaby
CDBaby was the pioneer for independent record production online.
Today, it allows you to distribute your content to the most popular music services on the internet – including iTunes, Amazon, Google Play, YouTube, Spotify, rdio, and iHeartRadio. Using the Pro version allows you to collect royalties from radio play and gain the greatest ongoing income from your work.
Pros: Greatest distribution network. Full set of promotion tools. Set fee – no ongoing costs. They offer a ‘free’ level that works on a commission base. Allows you to create and sell physical records.
Cons: Does not allow for other merchandise distribution.
Got another recommendation? Post it in the comments below. This is just the start, I’ll be updating and growing this list and I’d love to hear what you have found that’s worked (or not worked!)
