Crowdfunding has become an increasingly popular way for entrepreneurs, creatives and even established brands to fund their product ideas or projects.
Two of the biggest crowdfunding platforms are Indiegogo and Kickstarter. Both platforms have been around for over a decade, but they have some significant differences that can affect which platform is the best choice for your project.
In this blog post, we'll explore the differences between Indiegogo and Kickstarter and help you decide which platform is right for your project.
Indiegogo vs Kickstarter: What's the Difference?
1. Funding Model
One of the biggest differences between Indiegogo and Kickstarter is their funding model. Kickstarter operates on an "all-or-nothing" funding model. This means that if a project does not reach its funding goal, it will not receive any of the pledged funds. This can be a disadvantage for some projects, as it means that they may have to start over or find other sources of funding if they don't meet their goal.
Indiegogo, on the other hand, offers both all-or-nothing funding and a flexible funding model. With flexible funding, a project can keep all the funds that is pledged, regardless of whether they meet their goal or not. However, 68% of Indiegogo campaigns that failed to reach their funding goal did not receive any funding at all, which is comparable to Kickstarter's success rate of 65%. This suggests that the all-or-nothing model may be more effective at motivating backers to support a campaign.
2. Types of Projects
Another difference between Indiegogo and Kickstarter is the types of projects that are allowed on each platform.
Kickstarter is primarily focused on creative projects such as film, music, and art. They also allow for technology, design, and gaming projects.
Indiegogo, on the other hand, allows for a wider range of projects, including creative, entrepreneurial, and nonprofit projects. They also have specific categories for health and wellness, social impact, and education.
3. Fees
Both Indiegogo and Kickstarter charge fees for their services, but the fees differ slightly between the two platforms.
Kickstarter charges a 5% fee on the total amount raised, plus a payment processing fee of 3-5% (may vary depending on your location).
Indiegogo charges a 5% fee for all campaigns, plus a payment processing fee of 3%. (may vary depending on your location)
However, Kickstarter's overall fees are slightly lower than Indiegogo's. Kickstarter's average fee per campaign is 7.8%, while Indiegogo's average fee per campaign is 9.6%.
4. Global Reach
Both Indiegogo and Kickstarter have a global reach, but Indiegogo is known for being more international. They have a presence in over 200 countries and support multiple languages and currencies.
Kickstarter, on the other hand, is primarily focused on North America and Western Europe, but they are expanding their reach. According to the latest data, Kickstarter campaigns have backers from over 200 countries, while Indiegogo campaigns have backers from over 224 countries.
So, which Platform is Right for You?
Now that we've explored some of the differences between Indiegogo and Kickstarter, how do you decide which platform is right for your project? Here are some things to consider:
Project Type: If you are working on a creative project, Kickstarter may be the best choice. If you are working on an entrepreneurial or social impact project, Indiegogo may be the better option.
Funding Model: If you are confident that you can meet your funding goal, Kickstarter's all-or-nothing model may be the way to go. However, if you need to keep the funds even if you fall short of your goal, Indiegogo's flexible funding may be a better fit.
Fees: Take into account the fees charged by each platform when considering which one to use. While Kickstarter's fees may be slightly lower on average, the difference may not be significant enough to sway your decision.
Global Reach: Consider where your audience is located and which platform has a better presence in those areas. If you have a global audience, Indiegogo may be the better option due to its international reach.
Conclusion
Ultimately, the decision between Indiegogo and Kickstarter depends on your project and its specific needs. Both platforms offer unique benefits and drawbacks, so it's important to do your research and choose the one that aligns best with your goals.
In conclusion, Indiegogo and Kickstarter are two of the most popular crowdfunding platforms, each with their own set of strengths and weaknesses. Indiegogo offers a wider range of project types and more flexibility in its funding model, while Kickstarter is focused primarily on creative projects and operates on an all-or-nothing funding model.
By considering factors such as project type, funding model, fees, and global reach, you can make an informed decision about which platform is the right fit for your project.
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