Perks are rewards tied to investment thresholds, used by issuers to attract and engage investors. From branded merchandise to exclusive memberships, perks can help make an offering stand out.
What are perks and why do some issuers provide them?
Perks are a marketing strategy used by some issuers to thank investors and enhance the appeal of their offering. These rewards are tied to specific investment thresholds and serve as a gesture of appreciation to investors while distinguishing the issuer’s offering in the market.
Providing perks to investors is not a requirement for listing an issuance on the addy platform.
Types of perks that can be provided
Typical examples of perks include:
- Branded Swag: Issuer-branded T-shirts, hats, water bottles, or other merchandise.
- Exclusive Memberships: Special access to programs, communities, or memberships created by the issuer.
- Other – get creative! Charity contributions, free trips to view a property and exclusive content have all come up as potential perks that an issuer may offer.
What Is Not Allowed Due to Regulations
When offering perks, issuers must ensure compliance with regulatory guidelines. Specifically:
- No addy-Branded Items: Perks must not include any addy-branded materials, as this could create confusion about the source of the perk.
- No Securities: Perks cannot include additional securities in any form.
Fulfilling Perks: What to know
Setting Timelines for Perk Fulfillment
Issuers should set clear timelines for fulfilling perks, working with the addy team to ensure these details are included in the offering document. Perk fulfillment can only begin after the campaign officially closes. At this point, issuers will have the finalized list of investors and the investment thresholds they have met, allowing for accurate fulfillment.
Shipping and Other Fulfillment Methods
The responsibility for fulfilling perks, including shipping or other distribution methods, lies solely with the issuer unless otherwise specified by addy. Issuers must account for shipping logistics and costs within their budget and plan fulfillment accordingly.
Discussing perks with the addy team
If you wish to include perks in your offering, it is important to discuss with the addy team as soon as possible so that we can ensure your perks are reflected in the offering document and in our marketing materials.
Where do the funds for a perks program come from?
Issuers typically use their marketing budgets to fund perks programs. These budgets are separate from funds allocated for property enhancements, property management, or other asset-related expenses.
FAQs
When can I begin fulfilling perks?
You can begin fulfilling perks after the campaign closes. This ensures that you have a complete and finalized list of eligible investors.
How do I determine which investors qualify for perks?
You will work with the addy team to determine the qualification criteria, including investment thresholds, and outline them in your offering document. After the campaign closes, you’ll receive a finalized list of investors and their contribution amounts to help you determine eligibility.
Can I use third-party services to handle perk fulfillment?
Yes, issuers can use third-party services for manufacturing, shipping, or distributing perks. However, the issuer remains responsible for ensuring perks are delivered in accordance with the timeline and details outlined in the offering document.
Can perks be cumulative?
Yes, but only if explicitly stated in the offering document. For example, an investor who meets a $2,000 threshold might receive perks from both the $1,000 and $2,000 tiers if cumulative perks are specified. If cumulative perks are not mentioned, investors should not expect to receive perks from lower tiers. It is up to the issuer to determine if perks are cumulative or not.
What happens if I cannot fulfill perks within the outlined timeline?
If fulfillment delays occur, you should proactively communicate with investors to provide updates. Transparency is key to maintaining trust.
What costs should I consider when offering perks?
Issuers must account for the total cost of the perks program, including manufacturing, shipping, and administrative costs. These costs should be factored into your marketing budget and kept separate from the property budget.
Can perks programs impact my campaign?
addy cannot guarantee that perks programs will have any impact on the success of a campaign – whether positive or negative. We suggest exercising caution when budgeting for a perks program and choosing this marketing approach.