When launching a product using crowdfunding, Indiegogo and Kickstarter are two of the most popular platforms. However, deciding which crowdfunding platform is the best fit for your project can be challenging. Below we’ve outlined some of the primary differences between Kickstarter and Indiegogo and what you should consider in order to choose which platform works best for your project and where you’re most likely to find crowdfunding success.
Is Your Project a Better Fit for Kickstarter or Indiegogo?
One item that determines which platform is right for your product is your product type. Kickstarter caters more to creative projects, such as books, films, tech gadgets and games. Indiegogo, on the other hand, is intended for just about every type of project, whether it be charity, a small business endeavor, games, music, art or something else.
Does Your Crowdfunding Project Follow the Platform Rules?
Consider Kickstarter and Indiegogo’s rules before deciding which platform to use. Kickstarter, for example, has stringent rules regarding what you can include on their platform. No personal projects or charity items are allowed, and you must have a working prototype in hand before you begin. Indiegogo is a little more flexible in these areas.
Where are Your Project Backers Located?
Your location and the countries you wish to reach should also be an essential factor to consider. While Indiegogo operates in more than 200 countries, Kickstarter is available to creators in only 22. Therefore, for a more global reach, Indiegogo offers a broader scope.
Can you Complete the Project Approval Process?
It is also important to note that Kickstarter requires projects to have gone through an approval process before they can launch. So, while your Indiegogo venture can start rather quickly, you will need to wait until Kickstarter reviews your product and campaign before launching. Indiegogo does not have an application process.
Are You Okay With the Platform’s Fee Structure?
Kickstarter and Indiegogo have essentially the same fee structure for all-or-nothing campaigns in the United States. Both have a fee of 5 percent of the total funds raised and a processing fee of 3 percent and 20 cents per pledge for Kickstarter, and 3 percent and 30 cents per pledge for Indiegogo.
Are You Interested in All-Or-Nothing Crowdfunding or More Flexible Funding Options?
Kickstarter operates on a solely all-or-nothing setup. This means that if you do not reach your funding goal, you will receive none of the funds you raised. Indiegogo, however, offers a flexible funding option where creators receive all funds even if the campaign does not reach its goal.
Are You Interested in Raising Funds After Your Campaign Ends?
Indiegogo offers an option that helps you generate even more funds after your campaign has ended. InDemand allows entrepreneurs to continue raising money for their product after the campaign is over. This allows them to continue to build a community around their product without having to worry about setting and achieving funding goals. Creators from other platforms, including Kickstarter, can use InDemand after a successful campaign, but InDemand platform fees are slightly higher if you come to the platform from elsewhere.
How Important is the Crowdfunding Platform’s Brand Recognition and Trust?
When it comes to brand recognition and trust, Kickstarter has the advantage. They were the first to hit the market and are the more recognized of the two platforms. Kickstarter also has more stringent rules and requirements for crowdfunding project creators, leading some backers to trust Kickstarter projects more than Indiegogo projects.
As you’re choosing where to launch your crowdfunding project, keep in mind these differences between Kickstarter and Indiegogo. If you want to learn even more about the platforms or launching a product using crowdfunding, be sure to check out our podcasts and sign up for our newsletter.
