Kickstarter vs Indiegogo: Which is the Best Crowdfunding Platform?

Crowdfunding has become an increasingly popular way for entrepreneurs, artists, and creators to raise money for their projects, and two of the most popular crowdfunding platforms are Kickstarter and Indiegogo. But which one is the best for your project? In this article, we’ll explore the basics of crowdfunding, the history of Kickstarter and Indiegogo, and the pros and cons of using each platform. We’ll also compare their fees, examine the types of projects that perform best on each platform, and look at the success rates of campaigns on both platforms. Finally, we’ll provide tips for creating a successful campaign on each platform, and offer some crowdfunding alternatives to Kickstarter and Indiegogo. By the end of this article, you’ll be able to make an informed decision about which platform is right for your project.

Understanding the Basics of Crowdfunding

Crowdfunding is a method of raising funds for a project or venture by soliciting small amounts of money from a large number of people, typically via the internet. There are many different types of crowdfunding, including rewards-based crowdfunding, equity crowdfunding, and donation-based crowdfunding. Rewards-based crowdfunding is the most common type, and it involves offering backers a reward in exchange for their pledge. The reward can be anything from a thank-you note to a prototype of the product being funded.

Equity crowdfunding, on the other hand, involves offering backers a share in the company or project being funded. This type of crowdfunding is often used by startups or small businesses that are looking to raise capital and grow their business. Backers who invest in equity crowdfunding campaigns become shareholders in the company and have a stake in its success.

Donation-based crowdfunding is another type of crowdfunding that is often used for charitable causes or personal fundraising. In this type of crowdfunding, backers donate money to support a cause or help an individual in need. Unlike rewards-based or equity crowdfunding, backers of donation-based campaigns do not receive any tangible rewards or shares in the project being funded.

The History of Kickstarter and Indiegogo

Kickstarter was launched in 2009 and has since become one of the most popular crowdfunding platforms in the world. It has raised over $6 billion for more than 200,000 projects across a wide range of categories. Indiegogo was launched in 2008 and has also been very successful, raising over $1 billion for more than 800,000 projects. Both platforms have their own unique features, advantages, and disadvantages.

One of the key differences between Kickstarter and Indiegogo is their approach to project funding. Kickstarter operates on an all-or-nothing funding model, which means that if a project does not reach its funding goal, all the money is returned to the backers. On the other hand, Indiegogo offers both all-or-nothing and flexible funding options, giving project creators more flexibility in how they raise funds. Additionally, Kickstarter has a more curated approach to the projects it allows on its platform, while Indiegogo has a more open approach, allowing a wider range of projects to be funded.

The Pros and Cons of Using Kickstarter for Crowdfunding

One of the main advantages of using Kickstarter is its large user base. It has millions of users, which means your project has the potential to reach a wide audience. Kickstarter also has a reputation for hosting high-quality projects and has a strict vetting process. This can give backers confidence in the projects they choose to support. However, Kickstarter also has some disadvantages. The platform only allows all-or-nothing funding, which means if a project doesn’t reach its funding goal, it won’t receive any funding at all. Kickstarter also charges a higher percentage fee than Indiegogo.

Another advantage of using Kickstarter is that it offers a range of tools and resources to help creators promote their projects. These include customizable project pages, social media integration, and email marketing tools. Kickstarter also has a built-in community of backers who are often passionate about supporting innovative and creative projects. This can help creators to build a loyal following and generate buzz around their project.

On the other hand, one of the main disadvantages of using Kickstarter is that it can be difficult to stand out among the thousands of other projects on the platform. This means that creators need to put a lot of effort into promoting their project and building a strong campaign. Additionally, Kickstarter’s strict rules and guidelines can be challenging to navigate, and projects that don’t meet these requirements may be rejected. Finally, Kickstarter’s all-or-nothing funding model can be risky for creators, as they may not receive any funding at all if they don’t reach their funding goal.

The Pros and Cons of Using Indiegogo for Crowdfunding

Indiegogo has a more flexible funding model than Kickstarter. It allows campaigners to choose between fixed funding and flexible funding. Fixed funding means that if the project doesn’t reach its funding goal, backers will receive a refund. Flexible funding means that you’ll receive the funds raised even if you don’t reach your goal. Indiegogo also has a lower fee than Kickstarter. However, one of the disadvantages of using Indiegogo is that it has a less stringent vetting process, which means there are more projects on the site that may not meet backers’ expectations.

Another advantage of using Indiegogo is that it offers a range of funding options, including equity crowdfunding and initial coin offerings (ICOs). Equity crowdfunding allows backers to invest in a company in exchange for a share of ownership, while ICOs allow companies to raise funds by selling digital tokens. However, these options come with their own set of risks and regulations, and should be thoroughly researched before pursuing.

Comparing the Fees Charged by Kickstarter and Indiegogo

Kickstarter charges a 5% fee on all successfully funded projects, and it also charges a payment processing fee of 3-5% depending on the location of the campaigner. However, if a project doesn’t reach its funding goal, Kickstarter doesn’t charge any fees. Indiegogo charges a 5% fee on all funds raised, and it charges a payment processing fee of 3-5%. Indiegogo also charges an additional 2.9% fee if campaigners choose to use their InDemand feature, which allows them to continue raising funds after the campaign has ended.

Exploring the Types of Projects that Perform Best on Kickstarter vs Indiegogo

Kickstarter is known for hosting creative projects, such as art, film, and music. It’s also a popular platform for tech projects, such as gadgets and video games. Indiegogo is more focused on technology and innovation, and it has a strong reputation in the hardware and gadget space. Both platforms host a wide range of projects, but it’s important to choose the platform that best suits your project’s category.

Examining the Success Rates of Kickstarter vs Indiegogo Campaigns

According to Kickstarter’s statistics, the overall success rate of projects on the platform is 37%. However, this varies depending on the category of the project. For example, music projects have a success rate of 27%, while design projects have a success rate of 35%. Indiegogo doesn’t publish its success rates, but it’s estimated to be around 15-20%. It’s important to keep in mind that success rates are not the only factor to consider when choosing a platform. Other factors, such as the size and engagement of the user base, are also important.

Tips for Creating a Successful Crowdfunding Campaign on Kickstarter

If you decide to use Kickstarter for your crowdfunding campaign, here are some tips to increase your chances of success:

• Create a compelling video that showcases your project and tells a story
• Set a realistic funding goal and include a detailed budget
• Offer enticing rewards that are unique to your project
• Promote your campaign on social media and to your personal network
• Update your backers regularly on your progress and include photos and videos

Tips for Creating a Successful Crowdfunding Campaign on Indiegogo

If you decide to use Indiegogo for your crowdfunding campaign, here are some tips to increase your chances of success:

• Choose the right funding model for your project
• Create a clear and concise pitch that explains your project and its benefits
• Offer rewards that are relevant to your project and your backers
• Promote your campaign on social media and to your personal network
• Engage with your backers and respond to any questions or comments they have

Case Studies: Successful Campaigns on Kickstarter and Indiegogo

There are many successful crowdfunding campaigns on both Kickstarter and Indiegogo. Here are two case studies:

• Kickstarter: Pebble Time, a smartwatch project, raised over $20 million on Kickstarter in 2015. The campaign was well-planned, with a clear pitch, great rewards, and a video that went viral.
• Indiegogo: Flow Hive, a beehive innovation project, raised over $12 million on Indiegogo in 2015. The campaign was successful because it had a clear pitch, great rewards, and a passionate and engaged community.

How to Choose Between Kickstarter and Indiegogo for Your Crowdfunding Campaign

When deciding between Kickstarter and Indiegogo, consider the following:

• Your project category
• Your funding goal
• Your funding model
• Your rewards
• Your personal network

Ultimately, the best platform for your project depends on your unique situation and needs. Consider both Kickstarter and Indiegogo, and weigh the pros and cons carefully before making your decision.

Crowdfunding Alternatives to Kickstarter and Indiegogo

If neither Kickstarter nor Indiegogo is the right platform for your project, there are plenty of other crowdfunding alternatives to consider. Some popular options include:

• GoFundMe
• Crowdfunder
• Seedrs
• Funding Circle

Research different platforms and choose the one that best suits your needs. Remember that crowdfunding is just one of many ways to raise funds for your project.

Understanding the Legal and Financial Implications of Crowdfunding

Before launching a crowdfunding campaign, it’s important to understand the legal and financial implications. For example, crowdfunding can have tax implications, and campaigners should keep accurate records of all funds received. Crowdfunding can also have legal implications, such as intellectual property issues and liability for product defects. It’s important to consult with a lawyer and/or accountant before launching your campaign.

Conclusion: Which Platform is Right for Your Project?

Kickstarter and Indiegogo are two of the most popular crowdfunding platforms, but they both have their own advantages and disadvantages. Kickstarter has a larger user base and stricter vetting process, while Indiegogo has a more flexible funding model and lower fees. When deciding between the two, consider your project category, funding goal, funding model, rewards, and personal network. And if neither platform is right for your project, consider the many other crowdfunding alternatives available. Whatever platform you choose, be sure to understand the legal and financial implications of crowdfunding and to implement best practices for creating a successful campaign. Good luck!