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Indiegogo vs Kickstarter
Who can join, and why?
While Kickstarter’s participants can only come from the U.S. or the U.K. Indiegogo has no such restrictions and accepts participants from all nations. Indiegogo is the place to go if your family has lost everything in a flood or if you want to contribute to a cause like MS or AIDS research. You can do things like that with Indiegogo, but not with Kickstarter.
Kickstarter is a strictly non-humanitarian format; mostly catering to small entrepreneurs, graphic artists or the budding technological innovators.
Costs
The average funded Kickstarter campaign takes in about $5,500. If you make your goal Kickstarter then takes 5% processing fee and Amazon takes an extra 3%. If you don’t make your goal you get nothing and pay nothing.
Indiegogo doesn’t require you to use the all or nothing model that Kickstarter does; although if you choose all or nothing funding and reach your goal Indiegogo takes only 4% +3% credit card fee = 7% of the project funding. 1% less than the fixed funding payment of Kickstarter.
If an Indiegogo project needs $5,500 but has only raised $500, that $500 does not automatically get sent back to the backers as it would with Kickstarter. The Indiegogo project can choose to keep what they raise. However, if you choose to take an underfunded goal, Indiegogo will take a 12% cut of the project funds (9% fee + 3% for credit card payments).
Pricing Suggestions
Indiegogo will advise you to price your pledge-perks at a higher rate than Kickstarter. If a book costs $10 in stores they’ll tell you to raise the cost to something higher, perhaps $15, to remind backers that they’re not just buying a product but supporting something a little more special. Kickstarter suggests that the pledges be priced at in store prices.
After the Goal is Reached
After a project has been successfully funded, Kickstarter expects you to finish up and exit; never to return to the same stage. Indiegogo will let you take an encore. If you create a beloved cartoon character for instance, Indiegogo will allow you to make more of the same entertainment. This makes it possible to create a business within Indiegogo.
Conclusion
There are benefits and drawbacks to using either crowd funding platform. Let’s get a discussion going.
