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Referral Incentives in Crowdfunding

Authors: Naroditskiy, Victor; Stein, Sebastian; Tonin, Mirco; Tran-Thanh, Long; Vlassopoulos, Michael; Jennings, Nicholas R.;

Referral Incentives in Crowdfunding

Abstract

Word-of-mouth, referral, or viral marketing is a highly sought-after way of advertising. In this paper, we investigate whether such marketing can be encouraged through incentive mechanisms, thus allowing an organisation to effectively crowdsource their marketing. Specifically, we undertake a field experiment that compares several mechanisms for incentivising social media shares in support of a charitable cause. Our experiment takes place on a website promoting a fundraising drive by a large cancer research charity. Site visitors who sign up to support the cause are asked to spread the word about it on Facebook, Twitter or other channels. They are randomly assigned to one of four treatments that differ in the way social sharing activities are incentivised. Under the control treatment, no extra incentive is provided. Under two of the other mechanisms, the sharers are offered a fixed number of points that help take the campaign further. We compare low and high levels of such incentives for direct referrals. In the final treatment, we adopt a multi-level incentive mechanism that rewards direct as well as indirect referrals (where referred contacts refer others). We find that providing a high level of incentives results in a statistically significant increase in sharing behaviour and resulting signups. Our data does not indicate a statistically significant increase for the low and multi-level incentive mechanisms.

Country
United Kingdom
Keywords

crowdfunding, ddc:330, L31, M31, referral marketing, crowdfunding, C93, D64, referral marketing, jel: jel:C93, jel: jel:D64, jel: jel:L31, jel: jel:M31

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    This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
    8
    popularity
    This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
    Average
    influence
    This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
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    impulse
    This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
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selected citations
These citations are derived from selected sources.
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
8
Average
Average
Average
bronze
Related to Research communities
Cancer Research