If you have a campaign and are struggling to figure out which platform would be best for you, there are some factors you need to consider. Kickstarter and Indiegogo are the biggest and most successful crowdfunding sites. Indiegogo has gained more success in crowdfunding products and technology. While Kickstarter, proves to be more successful in crowdfunding creative projects. Kickstarter is the larger crowdfunding site of the two, with a total of over $2 billion dollars pledged towards Kickstarter projects and over 10 million people backing a Kickstarter campaign since its launch in April 2009.
Before we get the basic differences out of the way, it’s important to note some of the features that these two sites have in common (besides crowdfunding). Firstly, there is no cost to get started. Secondly, Kickstarter users must pay 5% of the funds to Kickstarter in addition to the credit card processing fees to receive payments from backers. Likewise with Indiegogo, reaching your goal means paying them 5% of the funds you raised whether you selected a fixed or flexible funding method. In addition to this you would also be required to pay third party fees. Though it is evident that not every goal will be reached, it is important to at least try to get as much funding as close to your goal -giving away 5% of funds of a film that is not fully funded is not ideal.
Kickstarter is not available worldwide. You can start a campaign with Kickstarter if you live in the US, the UK, Canada, Australia, New Zealand, the Netherlands, Denmark, Ireland, Norway, Sweden, Germany, France, Spain, Italy, Austria, Belgium, Switzerland, and Luxembourg – and only if you meet specific requirements. Indiegogo, however, has a bigger reach and is available in 224 countries.
While using Kickstarter you must ensure that a funding goal is set for your project and fix a time frame to achieve your goal – this is generally within 30 or 60 days. With Indiegogo you can select either a flexible or fixed goal for your project. If choosing a fixed goal, in the unfortunate event that you don’t reach your goal, all money pledged is refunded to backers. However, if you don’t reach your target under a flexible goal, you will still receive funds pledged from supporters, but you must make sure you fulfil the rewards stated for those that have backed your campaign. This is always handy because at least you will make a return. Kickstarter users, on the other hand, must reach their goal before they receive their funds.
As of last year, Kickstarter became a Benefit Corporation – a for-profit company that is obligated to think over the impact of their decisions not only on shareholders but on society too. Therefore, maintaining a positive impact on society is part of their goals. Kickstarter transitioning into a Benefit Corporation also means that they have now strengthened their dedication to arts and culture.
In contrast, Indiegogo has begun teaming up with companies, including the American retailer Target in an attempt to make crowdfunding more visible. This is great news for people setting up their campaign on Indiegogo, as in this instance, Target will help them to showcase their product to the world! Indiegogo also plans to team up with other businesses to take the subject of crowdfunding to a bigger audience and in turn make it more mainstream. Kickstarter CEO Yancey Strickler stated in the latter part of this year: “We don’t ever want to sell or go public”. Kickstarter places value on their impact on society rather than financial prospects and have consequently gone for more of a niche approach. Indiegogo, however, has decided to take crowdfunding to an even wider audience.
Before venturing into your crowdfunding project the best advice we can give is to look extensively at each site and figure out which one would be best for your campaign. Though Kickstarter is the bigger crowdfunding site- this does not necessarily mean it would be most suited to your campaign. Also, be sure to plan your crowdfunding campaign thoroughly because the essential aspect of it is funding. As mentioned before, with Kickstarter you can only receive funds if the goal is reached whilst Indiegogo enables you to receive funds even if the goal is not reached (so long as it is not under a fixed funding goal). Ultimately, it all comes down to choosing which crowdfunding site would be most beneficial and in this instance evaluating which would be best out of Indiegogo and Kickstarter. So depending on the type of campaign you want to set up, look at the differences between Kickstarter and Indiegogo and choose wisely.