Kickstarter and Indiegogo are common crowdfunding platforms. These two platforms seem to have similar features, making it challenging to pick the right crowdfunding platform. Both platforms have established themselves well and are the best and leading when it comes to crowdfunding. However, they both have merits and demerits.
How do you pick the right crowdfunding platform from the two? Which one among the two will help you achieve your crowdfunding goals, given that both Kickstarter and Indiegogo are built with a common purpose?
Kickstarter vs. Indiegogo: The best choice for your business funding
The following is a comparison of the two crowdfunding platforms to help you pick your ideal choice:
Kickstarter basics
To date, Kickstarter has funded over 190,000 projects. The platform carters for musicians, designers, artists, filmmakers, and any other innovators who come up with media, services, or products that they want to share with different people. Even if you aren’t developing a game or a new tech device, and your business specializes in production or creative talent, Kickstarter is the best platform to seek funds.
However, if you are trying to raise funds for charity such as environmental projects, personal needs, or disaster relief, you will not be able to use the Kickstarter platform. That’s because the platform’s rules only allow for projects that will be shared worldwide.
Indiegogo basics
Compared to Kickstarter, Indiegogo focuses more on sharing media and serviceable or creative products, including design and tech, transportation, fitness and health, phones, education, and accessories. Indiegogo is open to a wide range of businesses and projects. So, if your project doesn’t fall within the creative mission of Kickstarter, Indiegogo may be your best option.
Kickstarter vs. Indiegogo: campaign rules
Both Kickstarter and Indiegogo have different campaign rules. The following are the campaign rules of the two crowdfunding platforms:
Kickstarter campaign rules
Kickstarter is devoted to its aim of supporting arts and artists, and it strictly hosts a program that supports its mission. Therefore, it has few rules on what is allowed and what is not allowed. The goal of your project should be coming up with something that can be shared with the world. This includes physical products such as art and tech, but intangible experiences like film also count. So do music and community events.
You need to use clear communication and present the project to the backers. If the project involves the creation of a product, you should bring forth a real prototype to display. Projects cannot raise charity funds, although nonprofits can launch projects. You can’t offer revenue sharing, investments, or equity incentives for people to contribute to the project. Your offering or item should fall under the eligibility standards of Kickstarter, and you should steer clear of any campaign that falls in the list of prohibited Kickstarter projects.
Indiegogo campaign rules
Compared to Kickstarter, Indiegogo is less strict concerning the kind of projects that they host. Indiegogo not only accepts tangible products but also projects that benefit nonprofits, community campaigns, and educational campaigns. However, Indiegogo does not allow campaigns that are for personal causes.
Kickstarter vs. Indiegogo: How to apply for a campaign
The following are comparisons of the two crowdfunding platforms when it comes to campaign applications.
How to apply on Kickstarter
Before launching a campaign with Kickstarter, you’ll need to go through the application and approval process. The application entails the information about your project, like why are you raising the money and what amount you need, essentially, and basics. You are also responsible for creating the content on the project’s campaign page. You can also upload videos to add value to your project. Additionally, you need to provide an inscribed description and a system that rewards those donating.
To make your project unique, it’s advisable to use the creator’s handbook to get step-by-step guidance. After uploading all the required information, your project will be submitted for review. When reviewing your project, Kickstarter checks to ensure that your project falls under the accepted categories and that the project hasn’t violated any rules. The process of reviewing a project normally takes an average of 30 hours.
If your proposal has no issues, you will be free to launch. On the other hand, if Kickstarter feels like the project does not meet community rules, they have a right to reject your campaign. Lastly, you should keep in mind that after the approval of the project, you will have to launch it manually since this step is not automatic.
How to apply on Indiegogo
There is no approval process on Indiegogo, so all that is required of you is to collect the campaign materials before commencing the campaign. To begin with, you will require your pitch video and inscribed description. You should also ensure that your project is well-detailed, stating the reasons for fundraising and what the money will be used for. Thereafter, you will be required to enforce a perk system, a shorter description, and a title image. With Indiegogo, you can link all your social media accounts as well as websites for the potential backers to get an idea of what the project is all about in the big picture.
Funding and fees
When it comes to funding, there is a great difference between the two platforms. This will have an impact on your choice.
Kickstarter funding
The funding option for Kickstarter is an all-or-nothing model. This means that the backers can only pledge the money and nothing else. If the deadline that you had set for the campaign reaches before your campaign hits the fundraising target, you won’t be able to get the money and the backers won’t be charged the amount they pledged. I know this may sound a bit scary, but there is no need to worry.
If you choose to do your crowdfunding on Kickstarter make sure that you set an attainable goal. Again, make sure that you set a timeline that will enable you to attain your goal. It is also important to evaluate the process well and gauge the interest in the product before setting your funding goal. In addition, promote your project on social media platforms, websites, and even in the community.
Indiegogo funding
Unlike Kickstarter, Indiegogo has two funding models. Pick a funding goal that you feel you can achieve and receive your total amount. This amount does not include the processing fee of Indiegogo. In case you don’t reach your goal, the backers will get back the money that they had pledged.
However, Indiegogo also offers a flexible funding option that allows you to keep the funds that you acquire even without hitting the target amount. The good thing about this platform is that flex funding allows you to get more time if you can’t reach the target or your program is niche and requires more time to get more backers.
Fees
In order to stay in business, both platforms take processing fees from the overall funds raised. Kickstarter only takes a maximum of 5% of the total funds raised. As mentioned earlier, if you don’t meet your funding goal, you won’t need to pay any fees. The processing fee payment generally ranges between 3% – 5%. You can check out the full breakdown of the fees on the Kickstarter website.
On the other hand, Indiegogo also charges 5% of the total funds raised but not the target funding amount. Stripe, which processes credit cards charges fees of 3% and an addition of 0.30% for every transaction. Since Indiegogo operates internationally, there might be other charges related to worldwide transfers and personal banks. You can also check out the full transaction records to get an idea of where your funding is going.
The bottom line
Kickstarter only approves your project if it matches the company’s rules and mission of creation and you won’t have access to any funding if you don’t reach your funding goal. In contrast, Indiegogo accepts all kinds of ventures, and even if your program does not reach the funding goal you can still keep the amount that your backers pledged. In addition to that, people using Indiegogo for crowdfunding appreciate the extensive support system they give during and even after the campaign.
However, it doesn’t matter that much which platform is technologically better. What matters is which one among the two is better for your goals. Check out the funding guidelines, fee structure, campaign rules, and application requirements to decide which one suits you better.
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With a PR package from Pressfarm, you can generate publicity and win backers over to your Kickstarter project.