Rewards are what backers receive in exchange for pledging to a project. The importance of creative, tangible, and fairly priced rewards cannot be overstated. Projects whose rewards are overpriced or uninspired struggle to find support.

Deciding what to offer

Every project’s primary rewards should be things made by the project itself. If the project is to record a new album, then rewards should include a copy of the CD when it’s finished. Rewards ensure that backers will benefit from a project just as much as its creator (i.e., they get cool stuff that they helped make possible!).

There are four common reward types that we see on Kickstarter:

• Copies of the thing: the album, the DVD, a print from the show. These items should be priced what they would cost in a retail environment.
• Creative collaborations: a backer appears as a hero in the comic, everyone gets painted into the mural, two backers do the handclaps for track 3.
• Creative experiences: a visit to the set, a phone call from the author, dinner with the cast, a concert in your backyard.
• Creative mementos: Polaroids sent from location, thanks in the credits, meaningful tokens that tell a story.

Deciding how to price

Kickstarter isn’t charity: we champion exchanges that are a mix of commerce and patronage, and the numbers bear this out. To date the most popular pledge amount is $25 and the average pledge is around $70. Small amounts are where it’s at: projects without a reward less than $20 succeed 35% of the time, while projects with a reward less than $20 succeed 54% of the time.

So what works? Offering something of value. Actual value considers more than just sticker price. If it’s a limited edition or a one-of-a-kind experience, there’s a lot of flexibility based on your audience. But if it’s a manufactured good, then it’s a good idea to stay reasonably close to its real-world cost.

There is no magic bullet, and we encourage every project to be as creative and true to itself as possible. Put yourself in your backers’ shoes: would you drop the cash on your rewards? The answer to that question will tell you a lot about your project’s potential.