Rewards are a sureshot way to attract and incentivize people to give to your crowdfunding India campaign, because let’s face it – no one likes to part from their money without getting something in return. But rewards can get quite expensive when you have to reward every donor. What if we said you could combine rewards with referrals, to ensure that your cost for rewards doesn’t go up too much? Having a referral strategy that only offers rewards to the referrer, is an ideal way to bring your cost down.
What is a referral strategy?
For the uninitiated, a referral strategy is a networking strategy where by you ask your donors to refer your campaign to their friends and family. What’s even better, is that you can make the process fun and interesting by creating a contest out of it – a referral contest, if we may! After all, a little competition never hurt anyone. A good way to maximize the potential of this strategy is to create a hierarchy of referrals and rewards. Meaning if a person gives you 5 referrals, he/she get a small reward. If he/she gives you 20, the reward is something bigger. The person whose referrals get converted to donors get an even greater reward.
Here’s how it works:
Step 1: Launch your crowdfunding campaign
Step 2: After a donor contributes, ask them to refer your campaign to another potential donor
Step 3: Follow up that request with prizes for most referrals from a single donor
Step 4: Watch your network grow
What are the benefits, you ask?
- Provides great incentive to your donors
- Increases your outreach and donor base
- Great communication tool
- Spreads awareness about your cause
- A great marketing tactic that utilizes the resources of a donor
What you could offer?
As we mentioned earlier, you will need to offer tangible benefits to the referrer. Benefits could include:
- Invites to an event
- Brand merchandize
- Free samples of a products
- A meet-and-greet with a famous personality
A quick tip:
Don’t forget to establish a set of rules that will govern this contest. You need to give your donors a stipulated timeline within which they have to make give their referrals. You could also attach a timeframe for the entire contest so that it motivates the donors to act quickly. Also, be sure to establish what qualifies as a successful referral. A referral should only be counted if it actually drives traffic to your page. For instance, if a friend of the donor clicks the link sent to him and gets lead to your page, then that is a referral. If a referral does not bring in a potential donor, then it may not be counted.
As the world of crowdfunding India gets more and more competitive, it’s crucial for campaigners to find creative ways to bring traffic to their page. A final word of advice is not to be under the assumption that every referral will turn into a donor. Use referral contests only as a one of the manys tools for marketing, and not the entire focus of your campaign strategy.
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