I live in New Zealand

Land of hobbits, Flight of the Conchords, Xena, Peter Jackson, and Lorde.

It’s a little country at the bottom of the world. We have a tiny population (around 4 million people), a lot of cows, and everything costs a lot of money.

It’s a long way from pretty much everywhere else

Getting things here costs quite a bit. We share no borders with any other country. It’s 3 hours to Australia on a plane.

We’re just a little life raft at the bottom of the Pacific Ocean.

We create cool things, and we like to use cool things, but sometimes the postage to get it here costs a bloody fortune!

When I back a project, I want to watch/read/listen to the thing you’re making

Without fail, this is true of most backers on most platforms, for most projects.

Your backers don’t simply want to help you create your movie, or book, or album, or product. They want to participate as well!!

For creative projects, there is a really easy solution to this problem. It will save you money, and headaches, and make it really easy for everyone involved.

The solution? Offer digital rewards

There are three different types of rewards: digital, tangible, and experiential.

Digital rewards only require creating once, then they can be easily and quickly distributed to backers at a low cost. This is a huge benefit over tangible rewards, which require extra thought and budgeting in terms of postage.

Things to consider:

Digital rewards have a straight-forward value proposition, but there are downsides as well.

How will you will distribute them?

Do this before you go live. Know what platform you will distribute on, and how it works.

This will mean your wording is correct when people buy the reward, and will avoid problems with fulfillment later on.

One project that failed to do this was Zach Braff’s Wish I Was Here. Having promised two “online backer screenings”, Braff renegged and instead provided a link valid for 24 hours. The link didn’t work for some international backers. I got an hour into the film before the streaming died on me.

I still haven’t seen the whole thing, despite buying the digital reward category purposefully (and approaching them for a resolution). This wasn’t the reward I bought.

To help you out, I’ve published an epic list of digital distribution platforms.

Will your promises be affected by deals later on?

Movies especially can run into distribution problems with online streaming agreements in place.

Some distribution companies aren’t all that fond of taking on films where many of the potential audience has been granted digital downloads. In general, for these projects, I recommend you look at streaming, rather than download options. Limit the stream to a certain period of time (e.g. “a month”) and avoid specifying the streaming as “pre-release”.

It’s worth talking to other people who have successfully navigated the waters. Ask them what services they used, and whether it affected the long-term viability and profitability of the project.

3. Price accordingly

In New Zealand at least, an album on iTunes can sometimes cost $5 more than it does for the same album on a physical CD.

It makes no sense. With reduced production and distribution costs, should come a reduced total. Your digital option should be cheaper than the physical alternative. Add a premium to the physical copy and your distribution processes will be simplified considerably.

So what makes a really great digital reward?

I’ve seen a lot of crowdfunding projects, and every so often someone posts a reward I love. Here are some of the best digital rewards I’ve seen offered.

Secret Snapchat Stories

The creator will start a secret Snapchat account that only the backers have access to and use it to keep them updated.

This is fantastic if you’re going on a trip or journey, or have behind-the-scenes content to generate.

Hangouts

Let your fans ask questions, tell stories, or perform in people’s garages using Google Hangout technology.

Cooking 4 Change and The Coolest Cooler both used the technology during their campaign.

Hangouts are a way for you to talk to many people, and have them communicate with you.

The Product

If you’re recording an album – send out the mp3s. If you’re publishing a book, have an e-book version. If you’re making a TV Show or film, make it available to backers.

We want to see and participate in this thing along with you.

Creative Commons Content

Release something (high-res images, background music, 3D file), into the public.

Allow your backers to download some Creative Commons licensed content in return for their contribution.

Who knows? Maybe they’ll use your thing to make something awesome themselves!

Digital rewards are an essential part of every crowdfunding project

Physical rewards cost so much more time and money.

Experiences and digital rewards enable you to create meaningful thank-you gifts for your backers, with a higher return.

For more tips on coming up with your rewards, check out our 7 Essential Tips, or find out how The Lucky Taco structured their rewards for success.