Rewards-Based Crowdfunding

There are five basic types of crowdfunding —donation-based, rewards-based, lending, equity and royalty. The Local Crowd platform fits into two categories —rewards and donations—because our contributors can receive rewards in exchange for contributing to a business project, or they can make a simple donation to a cause they support.

The “rewards” space offers tons of opportunities for creativity and fun! So much fun, in fact, that I want to dedicate my next few blogs to digging into some different campaigns and the amazing rewards the creators have dreamed up and offered.

I’ll be covering four types of rewards. First, Pre-Sale rewards are a great way for businesses to get people to try out their products and services. Next, “Experience” rewards include activities like tours, receptions, classes, special events and parties. Naming rewards give contributors the opportunity to have their name or picture on something (like a menu item, or brick in a wall) and Sponsored Rewards are donated by other businesses or individuals who support the project. Stay tuned — these real-life stories will inspire you and stimulate your creative juices!