The social web has given rise to the strange new phenomenon of Internet crowdfunding. Through crowdfunding websites, people from all over the world can donate or pledge money to fund a project or charity.
If you’re familiar with the idea of crowdfunding, you probably already know that two of the most popular platforms are of course Kickstarter and Indiegogo. Both are great options, but each one has its own set of advantages and disadvantages.
Read through the following comparisons to find out whether Kickstarter or Indiegogo is right for your crowdfunding campaign.
What’s the Biggest Difference Between Kickstarter and Indiegogo?
Perhaps the first thing you need to know about Kickstarter is that it is only built for creative projects, like new tech gadget production or an idea for a cool indie game. If you want to raise money for something like disaster relief, or something else that doesn’t involve the development of a product or service, you can’t use Kickstarter.
Indiegogo, on the other hand, is much more open about the types of campaigns you can carry out. The biggest difference between the two platforms is that Indieogog can be used for almost anything, whereas Kickstarter is much more limited.
Kickstarter: the world’s largest funding platform for creative projects.
Indiegogo: an international crowdfunding site where anyone can raise money for film, music, art, charity, small businesses, gaming, theater and more.
Can Anyone Start a Camapgin on Kickstarter or Indiegogo?
With Kickstarter, only US and UK residents over the age of 18 can start a campaign. It’s scheduled to open to Canadian residents in the summer of 2013.
Indieogo recognizes itself as an international platform, so it allows anyone in the world to start a campaign as long as they have a bank account. The only real restrictions Indiegogo has is that it does not allow campaigners from countries on the US OFAC sanctions list.
Is There an Application Process for Using Kickstarter or Indiegogo?
Kickstarter campaigns need to be submitted for approval before they go live. In general, the campaign must be centered around the completion of a project that falls under any of their categories, which include art, comics, dance, design, fashion, film, food, games, music, photography, technology and theater.
Indiegogo does not have an application process, so anyone can go ahead and start a campaign without needing to get it approved first. You just need to create a free account to get started.
How Much Money Does Kickstarter and Indiegogo Take Away from Money Raised?
In exchange for using their fabulous crowdfunding platforms, both Kickstarter and Indiegogo charge fees to its campaigners. These fees are taken out of the money you raise during your campaign.
Kickstarter applies a 5 percent fee to the total amount of funds collected. US campaigners need to have an Amazon Payments account, while UK campaigners will be charged through a third-party payments processor.
Indiegogo charges just 4 percent in fees on the total money you raise if you end up meeting your goal. But if you don’t meet your fundraising goal, you are charged 9 percent of the total money raised.
How Do Kickstarter and Indiegogo Deal with Campaigns That Don’t Reach Their Fundraising Goals?
Kickstarter works on an all-or-nothing crowdfunding strategy. In other words, if a campaign does not reach their fundraising goal amount, any existing backers will not be charged for the amount they pledged and the project creators don’t get any of the money.
Indiegogo lets campaigners choose to set up their campaigns in two different ways. You can choose Flexible Funding, which allows you to keep any money you raise even if you don’t reach your goal, or you can choose Fixed Funding, which automatically returns all contributions to funders if the goal is not reached.
Which is Better?
Both platforms are great, and neither one is better than the other. Indiegogo has a lot more options than Kickstarter, including types of campaigns you can launch, flexible funding in case you don’t reach your goal and no application process to set up your first campaign.
Kickstarter, however, has excellent brand recognition in the tech/startup and creative arts industries, so if you’re planning to launch a creative project, Kickstarter could be the better crowdfunding platform for you despite having more limitations than Indiegogo.