By Chris on Apr 4, 2013, 9:33:50 AM
As many of you know we have started our Kickstarter and Indiegogo initiative, offering fulfillment for successful Kickstarter projects at an extremely discounted rate. We are currently in the process of fulfilling our first project, the Impress Coffee Brewer, for the product design company Gamil.
There are many crowdfunding sites out there and choosing the correct one that fits your business model is vital to your success. The most popular and well known sites are Kickstarter and Indiegogo. There are pros and cons to each choice.
The sites may seem very similar, but there are some key differences. Their target market is the biggest difference. Kickstarter focuses on design, performing arts, media, and technology. They want a project with a clear beginning and end. Kickstarter requires projects to go through a screening process and will not accept projects for social cause. Indiegogo allows almost all projects. For example, they feature causes such as raising money for those suffering through natural disasters. Indiegogo will also allow you to come back multiple times to fund different facets of your business.
Kickstarter definitely has the stronger brand and a larger following. According to Alexa (provider of web analytics), Kickstarter’s site has an overall traffic ranking of 280 in the United States, compared to Indiegogo’s rank of 995. If you have good reason to believe that your project will be a huge success and you are prepared to handle this, then Kickstarter will provide you the most web traffic and exposure. Kickstarter benefits creators by providing them with effective ways to market their project.
Their models for funding projects are also very different. On both sites a project creator must select a goal and a period of time for projects to obtain funding. Kickstarter will allow a project to be available for backing for up to 60 days, as opposed to Indiegogo’s 120 days On Kickstarter that goal must be met in order for it to be funded. However, if the goal is not met, no backers are charged and the project is deemed unsuccessful. With Indiegogo’s model the project is launched regardless of the goal being met or not. They are able to offer this by changing their pricing model. Indiegogo charges 4% for successful projects and 9% if it is unsuccessful in reaching the goal. Kickstarter charges a flat rate of 5% if a project is successful.
With Kickstarter projects having an “all-or-nothing” model it encourages backers to pledge more towards the end of the project in order to push it over the edge and be a success. It also gives backers a feeling of security that their rewards will be delivered because the project raised all required capital.
Kickstarter has a great feature on their site where they list their stats. It is a great tool that lets you know all sorts of different facts about successful, as well as, unsuccessful projects. As of the time of this blog, the total success rate for all Kickstarter projects is 43.74%.
This is obviously a brief overview of the two sites and we would encourage you to dig a little deeper before selecting the crowdfunding site that best fits your business.
To find out how we can assist you in your project simply contact us.