Indiegogo vs Kickstarter:
what to consider before you make a choice that could ruin your crowdfunding campaign.
Crowdfunding is a way to raise money for your project, and thanks to the growth of the internet, people from all over the world can donate or pledge money to fund your ideas and bring them to life.
The two most popular and largest crowdfunding platforms are Kickstarter and Indiegogo. Each has its own advantages and disadvantages. Deciding which one to launch on is a big decision that can impact your campaign.
So, what are the positives and negatives of Kickstarter and Indiegogo? Which one is better? Ultimately, that’s a decision you have to make, but we can provide some answers to help you pick the right one for your project.
The first thing you need to know about Kickstarter is that it’s mostly for creative projects like gadgets, games, films, and books.
Indiegogo is open to different types of campaign including animal rights or disaster relief projects (or even something which doesn’t involve the development of a creative product or service).
- Kickstarter is the world’s largest funding platform for creative projects.
- With Kickstarter, only permanent residents of the US, UK, Canada who are over the age of 18 can launch a project.
- Indiegogo is an international crowdfunding site where anyone can raise money for film, music, art, charity, small businesses, gaming, theater and more.
- Indiegogo brands itself as an international platform allowing anyone to start a campaign (granted that they have a bank account).
- The only real restrictions Indiegogo imposes are that it does not allow campaigners from countries on the US OFAC sanctions list.
What is Process to launch on Kickstarter or Indiegogo?
Kickstarter demands that projects be submitted for approval before they can go live on the platform.
Indiegogo does not have submittal or application process allowing anyone to start a campaign without approved from their team.
How Much Money Do Kickstarter and Indiegogo charge for their services?
- Kickstarter applies a 5% fee from the total funds collected (along with a 3 to 5% payment processing fee).
- Indiegogo charges 5% in fees on the total funds raised + a processing fee of 3% + 0.30 per transaction is charged by Stripe, Indiegogo’s payment processor.
What happens if I don’t reach my goal?
Kickstarter works on an all-or-nothing system. This means when a campaign doesn’t reach their goal, all backers are not charged for the amount they pledged, and the project owners don’t get any of the funds.
Indiegogo offers project owners two options:
- Flexible Funding – allows you to keep any funds raised even if you don’t reach your goal
- Fixed Funding – automatically returns all funds to backers if the goal is not reached.
Flexible Funding Option: allows you to keep your collected funds even if you don’t reach your goal (if you raise $20,000 of a $25,000 goal you still can keep those funds).
You can also extend your campaign end date by an additional 30 days (giving you 60 days to find fundng)
Secret Perk: Allows you to create perks for specific members of your audience, meaning you can run discount deals or offer special prices to individuals.
InDemand: allows you to continue to offer your product/service indefinitely after your campaign ends (very useful as InDemand opens up the possibility of more customers after your end-date).
Shipping: project owners have to be upfront and state how much additional cost for shipping outside of their home country will be.
However, the costs to ship to different countries varies (shipping from Canada to the United States is much cheaper than to ship from Canada to France).
Messaging System Indiegogo’s does not have a platform wide messaging system, meaning backers messages are sent directly to creator’s email, from which they have to respond from.
An easy work around for this is to stress to backers to use the support email you provide over the internal messaging system.
Reward Level Limit: Indiegogo allows for a maximum of 20 reward levels (compared to Kickstarter’s 50). While 20 reward levels should be enough in most cases, there are some instances when having a lot of reward levels is advantageous.
InDemand Fees: Platform fees in InDemand are 5% if you run your campaign on Indiegogo, 8% if you already ran your campaign on another platform, and higher than 8% if you ran on another platform and receive additional support from our team
Traffic/Audience: Kickstarter is synonymous with crowdfunding as it is the flagship platform in people’s minds. It also received more traffic on a monthly basis that Indiegogo.
Shipping: Kickstarter offers the option to integrate shipping rates for each country individually for every reward level compared to Indiegogo’s model.
Fixed Funding Only: Kickstarter has no Flexible Funding option, meaning if you don’t reach your funding goal all of your contributions are refunded back to the campaign backers.
Limited project Scope: Kickstarter does not open it’s platform to any projects, meaning Indiegogo offers more range for projects and services.
Which Crowdfunding Platform Is Better?
Both platforms are great, and neither is better than the other as they offer different services. Indiegogo has more options regarding the types of campaigns you can launch, flexible funding when you don’t reach your goal and no application process to set up your campaign.
Kickstarter offers brand recognition in the tech and creative arts industries, but has more limitations than Indiegogo when it comes to launching a campaign.
Indiegogo has higher fees if you choose to extend your campaign to the InDemand stage as your fees will jump to 8% compared to Kickstarter campaigners who don’t have to pay anything if their campaigns fail, although Indiegogo allows owners to keep their collected funds (minus the fees their platform charges) and to extend their campaign deadlines.