We have to acknowledge that the immense success in the crowdfunding realm has triggered many crowdfunding platforms. And, it’s not complex to gather why this trend has been and will be on the rise for the foreseeable future.
Crowdfunding, particularly reward-based crowdfunding, has garnered popularity and is a feasible opportunity for individuals to source funding. However, as streamlining and viable as it is, you ought to consider several factors before launching your crowdfunding journey.
Which platform aligns with your project will be an utmost consideration. As a result, you will opt for the best and most prevalent crowdfunding site. While there might be several options on the table, you can’t elude Kickstarter and Indiegogo, the two most pervasive and excellent platforms for fundraising and generating awareness of your project.
Contrary to some misconception that both platforms are the same, Kickstarter and Indiegogo are different. Even better, attention to detail to these dissimilarities sets you up for success. As a result, we will elucidate more about Kickstarter and Indiegogo to help you decide which platform is best for your campaign.
When thinking about crowdfunding, Kickstarter must have come along with the thought. Crowdfunding is primarily synonymous with Kickstarter. With its headquarters in Brooklyn, New York, U.S Kickstarter has been set up as the most prominent crowdfunding platform globally, open to backers and creators from anywhere in the World.
Several creative works, such as Pebble Time (the largest successful Kickstarter campaign with $ 20.3 million), have found their footing through Kickstarter. Boasting nearly $6 billion in pledges from tentatively 20 million backers, Kickstarter has hosted over 200,000 projects.
Typically, Film, video, and music categories have had tremendous success raising most of the money. Nonetheless, design and technology are progressively picking up in recent years. All in all, Kickstarter supports 13 categories, including games, food, and publishing.
I know the numbers are pretty impressive. Nonetheless, according to Statista, only 38.92% of projects have successfully launched via Kickstarter. So as you can imagine, over 60% of projects, the majority, bite the dust.
Yet another American crowdfunding website, Indiegogo, allows people to solicit funds for a broad collection of projects or ideas, including charity. As the name almost gives it away, Indiegogo initially focused only on independent films, but a year after its launch in 2008, other categories were also allowed on the platform.
Not only is Indiegogo considered a bit flexible and less stringent than Kickstarter, but also it accords more opportunities and more categories. For instance, Indiegogo owns GoFundMe, which allows individuals to raise for charity rather than creatives. Also, Indiegogo partnered with another company enabling unaccredited investors to participate in equity-based campaigns.
All we are trying to say is that Indiegogo supports various projects and is available in more than 200 countries. Unfortunately, Indiegogo rarely discloses data; therefore, it’s impractical to state its success comprehensively. Nevertheless, as of January 2019, Indiegogo raised more than $1.6 billion for startups with Flow Hive, the largest successful completed project, generating more than $12 million.
Kickstarter vs. Indiegogo: Which Platform is Best For Your Campaign
The notable and foremost difference between Kickstarter and Indiegogo is that Kickstarter limits the projects you can use the platform for, typically creative projects thrive. On the other hand, Indiegogo allows for a variety of projects, even charities. Still, there is a lot more:
Another noteworthy difference. Kickstarter primarily employs the all-or-nothing model. That is, you will receive the raised funds only after hitting your funding goal. On the other hand, Indiegogo has two funding options. The fixed option is akin to Kickstarter and a more flexible funding option whereby you retain whatever funds you have raised even if you don’t hit your target.
Yes, the flexible options seem less risky and more alluring. Nevertheless, you have to fulfill the results and promises you assured your backers. All in all, Indiegogo gets the upper hand considering the funding scheme.
Media and Blog Outreach
Again, Kickstarter is a renowned crowdfunding site that attracts the attention of the media. Primarily this is due to the strict quality control image deployed by Kickstarter. Don’t get it wrong. Indiegogo is also prevalent, but it doesn’t get as much media coverage as its counterparts. Therefore, if you believe your idea/product is unique and will break the headlines, Kickstarter is your best bet for enjoying extensive press coverage.
Platform Fees and Payment Processor Fees
Akin to Kickstarter, Indiegogo charges 5% of the total funds you have raised. If you fail to hit your target, Kickstarter, you aren’t liable for any deductions. On top of the 5%, both platforms charge an extra 3% for payment processor fees.
Also, Indiegogo doesn’t charge any fee for personal fundraising projects. So all in all, both sites offer reasonable fees.
Remarketing is an effective tool for reaching out to visitors who have already expressed interest ( visited your website )in your product or brand. Fortunately, Indiegogo allows campaigners to insert a Facebook pixel code into their campaign page. Consequently, it creates an audience to remarket the campaign with more targeted and comprehensive ads. Unfortunately, Kickstarter lacks this feature that allows you to build an audience you can reach after a successful campaign.
Post Crowdfunding Campaigns
After a successful crowdfunding campaign, the next step is critical in determining where your project is headed. InDemand, a prevalent and must-have tool after a successful campaign via Indiegogo, allows you to continue raising funds and your project highlighted on the website even after the end of your campaign. As a result, you can acquire new audiences and expand your community reach.
As outlined, InDemand is a standard feature for Indiegogo. Still, it’s possible for Kickstarters to transit to InDemand. Getting in touch with the team from Indiegogo can make the transition streamlining.
Other Notable Differences
We have highlighted the most significant differences. Other tiny differences to consider include:
- Indiegogo uses Vimeo and Youtube for video hosting services. On the other hand, Kickstarter only uses its video hosting. As you can imagine, YouTube is a reckoning force in the search engine program. Thus you can attract more followers.
- Kickstarter uses Stripe as their payment partner, while Indiegogo allows for Stripe and Paypal.
- Kickstarter has no limit for reward level. Contrastingly, Indiegogo has a limit of 20 reward levels.
- Indiegogo receives up to 12 million monthly unique visitors, while Kickstarter gets around 28 million new visitors.
Final Thought: Which Platform Should You Choose
Kickstarter is best suited for creative projects. Indiegogo accepts a broader range of categories. All things considered, the ideal platform depends on the kind of project or product you want to launch. It’s best to scrutinize all the cards at play before making this critical decision.