Crowdfunding Techniques: Kickstarter vs. Indiegogo
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How will you raise money for your product? Have you thought about it? Kickstarter and Indiegogo are just a couple platforms that help you raise money for your projects — but what are the benefits to both? Here we pick them both apart.
Every project is independently created and the people are in 100 percent control over what happens in both Kickstarter and Indiegogo.
Both are also alike in that they charge five percent platform fees to every project.
Kickstarter’s participants get to set their project goal and funding deadlines, but their funding goals are fixed. If they don’t make it to their funding goal by their deadline, their project fails and no one’s credit card gets charged.
This is why marketing and letting people know ahead of time that you're launching a Kickstarter campaign is so imperative for Kickstarter, because you have to make it to that 20 percent mark early on.
Having fixed funding is often good for people trying to meet a manufacturing goal, which is why they do it in the first place sometimes.
Whereas with Indiegogo, participants have the choice of having fixed or flexible funding. Fixed funding means all contributions are returned if they don’t meet their campaign goal, but flexible funding means they get to keep any contributions even if they don’t meet their campaign goal.
Kickstarter staff picks and also has a review process, making the content more valuable in some ways but also harder to get into, whereas Indiegogo has no review process and is a much more open platform. There’s a review process to make it as a project, whereas with Indiegogo, there’s no review process — and this also causes a lot of spam to run rampant throughout the website.
With Kickstarter, there’s a lot more press because the press doesn’t have to go sifting through projects.
For Kickstarter, your project has to have a working prototype in order to be eligible, but with Indiegogo it doesn’t have to have one. This means that with Kickstarter, if you have a working prototype, you’re probably farther along in the process with your ideation and iteration of the project. It doesn’t necessarily mean that you’re more serious.
If you’re thinking about crowdfunding, it comes down ultimately to your preference as to which crowdfunding platform you’d like to choose. But these are some of the aspects you might want to consider when thinking about how you will raise money for your product idea.
This article was published by the Jaycon team. Learn more about how we can take your product design and hardware idea to the next level here.