In crowdfunding, choosing the right platform for your project or product is fundamental to a successful campaign. At first glance, both Kickstarter and Indiegogo, the two most popular crowdfunding platforms, may seem nearly identical; however, there are distinct differences that make one or the other well-suited to specific campaigns. Understanding these differences can help creators make a choice that is right for them.
Who funds more (big, successful) projects?
Comparing funding statistics between the two is difficult, as Indiegogo does not publicly disclose data. However, in 2016, Kickstarter campaigns raised $2.6 billion, whereas Indiegogo campaigns raised $950 million. Kickstarter also had a 36 percent campaign success rate. That may seem low, but keep in mind that it is the highest of any crowdfunding platform. By comparison, Indiegogo campaigns have a paltry nine percent success rate. Kickstarter can also boast more than 110,000 successful projects – again, purportedly more than all of the other crowdfunding platforms combined.
In 2017, Kickstarter campaigns raised over $2.8 billion, boasted 118,000 successful projects and had a total of 12 million backers. Over 200 broke the $1 million mark, and nearly 3,500 raised over $100,000. Indiegogo’s numbers are not quite as impressive. However, at any given point it has around 7,000 active campaigns – to Kickstarter’s 4,000 – and hosts about 270 new campaigns every day.
What types of projects do Kickstarter and Indiegogo allow?
There are thousands of impressive projects and products on both Kickstarter and Indiegogo. However, creators must agree to Kickstarter’s rules, which are more demanding, prior to launching their campaign. Indiegogo’s rules are less strict. For instance, Kickstarter products must feature a fully functional prototype. Indiegogo does not require this step; products may simply be non-working prototypes.
Kickstarter also requires that every project have a plan for creating something. Projects cannot raise money for a charity, nor can they offer revenue sharing or investment opportunities. Kickstarter supports projects and products only in these categories: Comics, Crafts, Art, Design, Dance, Journalism, Music, Food, Games, Film & Video, Fashion, Photography, Technology, Theater and Publishing.
By contrast, Indiegogo supports most any project or product – 24 categories versus Kickstarter’s 15 – including charity projects, or something like making a bar of soap out of herbs or building an app. Indiegogo has also extended its business model to compete against programs like Amazon Launchpad by offering a platform for products that are in line to be shipped. In 2015, Indiegogo went a step further and separated cause or charity campaigns from personal campaigns, forming a new platform called Generosity.
Both platforms have rules that every project should follow (although Kickstarter’s rules are more strict) as well as prohibited items, such as offensive materials, hate speech, alcoholic rewards, anything pornographic, drugs and more.
Does either platform allow you to continue to raise funds after a campaign ends?
With Indiegogo, campaign owners can choose to enroll in InDemand, a platform that is essentially an extension of a regular crowdfunding campaign on Indiegogo that makes it easy for creators to keep raising funds after their campaign ends. InDemand also lets creators continue to grow their community, reach new audiences and receive ongoing exposure on the Indiegogo platform. Creators are only eligible for InDemand if they meet their goal by the campaign deadline and are in good standing with Indiegogo.
If you used Kickstarter for your campaign, it is still easy to transition to InDemand. Creators on Kickstarter must contact the Indiegogo team, who can help transition their campaign over to Indiegogo. Once their campaign is set up, they have the ability to edit their story, perks, payment details and more. However, they cannot edit their original funding goal or how much their campaign has raised.
Which countries can you reach with each platform?
Another reason to explore both Kickstarter and Indiegogo platforms prior to launching your campaign is your country’s eligibility. Kickstarter authorizes campaigns from only 18 countries. So, if you live in Asia, Central or South America or Africa, Kickstarter is not an option. Indiegogo, on the other hand, supports campaigns from 224 countries.
What are the platform fee structures?
Kickstarter is a platform that typically focuses on creative projects or products like music, art, film and technology. Funding is “all or nothing,” so if you do not reach your funding goal within the timeline, no pledges earned will be paid out and no fees will be charged. The 5 percent fees Kickstarter charges are considered reasonable. However, if a campaign is successful, total fees can range from 8-10 percent. Indiegogo specializes in offering many diverse campaigns and projects, which is considered a huge plus in the crowdfunding world. Overall, fees are a bit higher than on Kickstarter, but remain in the 8-10 percent range.
So which crowdfunding platform should you choose?
It depends on the project or product you are creating. If you have a creative project that fits within the confines of Kickstarter’s rules, than because of sheer size and audience reach, Kickstarter is probably the best choice. However, if your campaign is charitable in nature or not committed to producing a creative product, then Indiegogo is best.
If you are still not sure which platform is best for your project, or have additional questions and seek more information about crowdfunding services, turn to the experts here at Enventys Partners. Their team can help with product development and marketing services that take your idea from concept all the way through to execution. They will help you crowdfund, design, market test, manufacture and sell your product, transforming not only your life but the lives of consumers as well.