Firstly, what are Rewards?
In some instances, a company will offer an incentive or a reward to somebody who decides to purchase shares. Think of it as a gift from the company to the new investor, thanking them for their investment.
A reward can range from a free product to a discount when using the company's services to anything you can think of!
However, rewards are not allowed to be monetary in value, ie. 'Invest $1000 and get $200 back in cash' or 'refer 3 friends and receive an extra 500 shares'. This is considered financial assistance to investors in the eyes of ASIC and is not allowed.
Investors are not required to accept a company's offer for a reward - so they simply select the 'No Reward' option when investing to disregard this step of the investment process. In addition, you as a company are not obligated to provide rewards in your offer but it's always a nice touch to make your new shareholders feel welcome!
Reward Inspiration - Favourites from Birchal.
Low Level Rewards
High Level Rewards
Uploading Rewards to your Offer
You'll need to make sure you outline your rewards in your Subscription Agreement and also upload images to the Investment offer setup page on the Birchal Company profile. Tips on how to upload your reward images that can be found here.
It's up to the company offering the rewards to deliver them to their new investors. You can download a list of shareholders who have selected rewards from your investment page on the Birchal Company Dashboard, which will include the reward level they selected, their email and address etc.
Our advice would be to deliver your rewards in as timely fashion as possible - this is where the bulk of investor complaints come from!