Hasta La Creative!

Full Discloser: I am a Marshmallow (a “Veronica Mars” fan). When I first learned of the “Veronica Mars” Kickstarter project to raise funds for the cult movie, I debated cashing in my 401K so I could buy up all the rewards. I settled for the $1,000 level — rewarded with a ticket to the New York premiere and after-party — and after leaving the splashy event last month, I was convinced it was the best money I’d ever invested. The only thing that might have improved my experience? Walking out of the party with a Samsung Galaxy tablet [Samsung is a sponsor of the movie].

Once the bastion of forward-thinking startups and entrepreneurs — Eric Migocovsky famously raised over $10 million for his futuristic Pebble smartwatch — crowdfunding is now attracting high-profile celebrities and other big names. Actor-director Zach Braff raised $3 million for his “Garden State” follow up “Wish I Was Here.” Director Rob Thomas and actress Kristen Bell received over $5 million to fund the “Veronica Mars” movie. James Franco pulled in over $300,000 for a film adaptation of his book, “Palo Alto.” One of the many allures of several crowdfunding platforms (CFPs) is the “reward system”.

When a person “backs” or funds a project, he or she generally does so in exchange for a reward or experience. The rewards increase in value as your investment increases: A $10 donation will get you a hand-written thank-you note from the company, while a $10,000 donation will get you multiple units of the product being funded or a role as an extra in its first commercial. What would happen if a brand helped increase the value of these rewards?

Continue reading at AdAge.com