Choosing a Prize for an Idea Contest
So, you have decided to run an idea competition. You have booked a space and started to reach out to potential participants, but there is one thing left to be sorted: What will you offer as the prize? Even if the challenge is going to better the world, having the right prize is essential. A good prize helps attract participants and raise the quality of ideas submitted. To start off we should explore the two different types of prizes for an idea competition:
- A grand prize
- A grant scheme
In the first category, a prize is selected, ideas are submitted, a panel of judges selects the winner and they receive the prize. It is then up to the prize giver if they would like to include the group in the implementation of the project.
In the second category several semi-finalists may be selected and receive a small grant or other form of start up support to further develop their idea. There is then a final round of judging where a winner is selected, a bigger grant is given, and the idea can be implemented.
Selecting which type of prize to offer depends on your idea competition. How involved do you want to be in the development of the idea? Are you looking for a great solution to a problem that you can then implement and deliver, or are you hoping to work with a great team of people to fully develop a solution before choosing a winner?
Once you have decided on the type of prize to give (Grand or Grant Scheme), you need to decide what that prize will be.
Grand prizes
The prize that you choose can be monetary or something else of your choosing. The most important thing is deciding on the value of your prize. If the value is large, it will encourage participants to think on a bigger scale. However, this could also intimidate or discourage some potential participants. You can counter this with clear communication to potential participants. Let them know about the size and scale of the project, and what kind of value they will be adding to your organization. If you choose a smaller prize, this might give the impression that you are looking for smaller scale submissions. If you believe that the challenge will not require a huge time commitment from participants, it os okay to offer a smaller prize.
One way around this divide is by providing non-cash prizes. If you do not have a big enough budget to offer a large cash value, you can offer something priceless yet high in value. The opportunity to receive mentorship from a respected person in your community or industry, access to a product or service for free, or another industry related prize are all great ways to increase the value of your prize with only a small increase in budget.
As a general rule of thumb the value of the prize should be equivalent to the expected outcome of the project and input of the participants!
Grant scheme prizes
For this type of idea competitions you will need to decide on the interim prize and the final prize. The first prize will be offered to several participants, and should include some elements of mentorship or support that will help participants further develop their submissions. A cash prize can also be given at this point but it should be specifically to help further develop the project. The final prize should again match the desired benefit to your organization. The grand prize should be bigger than the interim prize, but does not need to be as big as if it were a grant prize challenge, as the semi-finalists have already received some benefits.
For any type of idea competitions, recognition should be a part of the prize for participants. Even if your organization will be taking control of the project after the challenge, it is still important to give credit and allow participants to be involved further in the project. Blog about the winners, put their pictures on your website, tweet out to them- let them know you appreciate their contribution!
What prizes have you given out at open innovation competitions? Did they have the desired effect?
References: Guide to Social Challenge Prizes Challenge Prize Design Guide
