Choosing a crowdfunding platform and the differences between the two has always been a challenge for those that choose rewards-based crowdfunding, but what are the real differences between the platforms? Before you jump into crowdfunding here what you should know to select the platform is best for you, each has its advantages and disadvantages. Let’s jump in.
Kickstarter
- Recently Brandon Sanderson, fantasy book author secured more than $20.8 million from 84,600 backers in just three days.
- Kickstarter only offers fixed funding, which means your company only receives money after the campaign is successfully funded. If you fail to reach your funding goal, all money pledged will go back to its backers.
- Kickstarter doesn’t allow photorealistic renderings and requires that you have high quality realistic images of your campaign offering.
- Kickstarter is focused on North America and UK.
- Campaigns go through an approval process that will guarantee the quality of the campaign.
- The fees for Kickstarter is a 5% fee and a 3% to 5% processing charge.
Indiegogo
- Julie Kronstrøm Carton and Christian Adel Michael, the brother-sister team behind MATE ebike campaign, raised over $6.8 million, making it one of the most successful campaigns ever on Indiegogo.
- Indiegogo offers a variety of funding options at different stages of development including both fixed and flexible funding.
- Indiegogo allows tracking and additional marketing opportunities by way of affiliate marketing, referrals and more.
- If you’re an international company, Indiegogo is the way to go.
- You can start a campaign right away.
- Fees are between 4% and 9%, depending on if the campaign meets or doesn’t meet its goal.
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