Kickstarter vs Indiegogo: Which Crowdfunding Platform Can Be Ideal for Your Project?

By Guest Contributor on July 24, 2019

Crowdfunding has emerged as an effective way to raise funds for projects and various causes ranging from developing a tech gadget to shooting an independent movie to building an innovative software solution. Thanks to the crowdfunding platforms, creative and ambitious development projects no longer need to be concerned about investment while chasing their dream. Many innovations starting out of garage spaces could see the sweet glow of success thanks to overwhelming crowdfunding support.

Anyone having familiarity with the crowdfunding knows about Indiegogo or Kickstarter, two undisputed leaders among the crowdfunding platforms. While both are superb platforms, each has its own pros and cons as well. Instead of listing the pros and cons, here we are going to see how they work and differ in terms of advantages and disadvantages for various aspiring projects.

The Basic Difference

Let’s start with the fundamental difference. Well, Kickstarter is basically a crowdfunding platform for creative projects such as innovative gadgets, films, games, and books. In contrast, Indiegogo allows crowdfunding for creative projects as well as a lot of other types of campaigns such as animal rights protection funding, small business funding, environmental rights campaign funding and many others. Even Mobile App Developers can launch campaigns to raise funds for development. This platform can actually be used for nearly anything while Kickstarter sticks to only limited types of creative projects.

How does Kickstarter Funding work?

Kickstarter follows only one model for funding, and it can be dubbed as the all-or-nothing model. As per this model, backers can pledge any amount of money for your campaign, but if the fundraising goal is not achieved within the predetermined deadline, the backers aren’t charged their pledged money, and you don’t get anything for the project. This is why campaigns on this platform are advised to go for only attainable goals that can be achieved within the timeline.

How does Indiegogo Funding work?

In complete contrast to the Kickstarter, we have two different funding options with Indiegogo. The first option is just like the one that works for Kickstarter. In case you don’t achieve the funding goal, the backers are refunded their money, and you don’t get anything.

The second funding option allows you to keep the pledged amount without achieving the funding goal. This flexible model works best for projects that require some time to gather interest and projects that are not confident enough to raise the fund within a specified time.

Indiegogo vs Kickstarter Fees

Both Kickstarter and Indiegogo charge a portion of the entire funds raised through campaigns on their platforms. Apart from this they also charge a processing fee.

Kickstarter charges 5% of the entire raised funds. But in case you don’t meet your target, the platform doesn’t charge a penny from you. Apart from this, the platform also charges a payment processing fee between 3% and 5%.

Indiegogo takes a similar charge as 5% of the funds raised. Instead of charging on the fundraising goal amount, they charge on the actual money raised. They take a 3% Processing to feel along with 30 cents for each transaction.

Media and Outreach

As of now, Kickstarter enjoys more media exposure than IndieGogo. The media outreach and image of Kickstarter is better compared to IndieGogo because of the stricter quality control measures. IndieGogo also gets good press coverage and online media attention thanks to an array of innovative projects hosted by the platform.

Can You Start a Campaign on Kickstarter or Indiegogo?

When it comes to the eligibility criteria, both platforms have their set of rules for starting campaigns. On Kickstarter, only the permanent citizens of the UK and North America can start campaigning provided the campaigner is 18 years of age.

Indiegogo, on the other hand, has a global presence and quite rightfully considers itself as a worldwide crowdfunding platform. Anyone living anywhere in the world can just start a campaign except the countries in the US OFAC sanctions list.

The Application Process for Campaign on Kickstarter or Indiegogo

Kickstarter campaigns are required approval from the authorities before they are allowed to go live on the Kickstarter page. Generally, on Kickstarter, the creative projects that are encouraged to participate are on the verge of completion when starting their fundraising initiative. Some of the key creative niches that are allowed for fundraising campaigns include tech gadgets, software, games, fashion, film, comics, art, design, dance, music, photography, and theater.

Indiegogo runs without any strict control of participants, and anyone can start a campaign on this platform. All you need to do is to create a free account and begin your campaign. You only need to have a bank account in your name.

Which Platform Is Ideal?

Finally, let’s face the obvious question: which of these two crowdfunding platforms is better and ideal? Well, both have their own set of pros and cons, and so, no platform can be considered better than the other. As we have seen, Indiegogo is much more flexible and accommodating for all sorts of campaigns while Kickstarter is only good for highly credible projects that require only last-mile funding to start production.

Since Kickstarter doesn’t allow any participant from countries other than the US, UK, Canada, and a few others, anyone living in Asia, Latin America or Africa should automatically strike out this as an option.

As for fees, both platforms have little or negligible differences. Both have a global presence and massive popularity among the creative developers, gadget makers and people working with a variety of innovative projects.

Conclusion

Crowdfunding has come as a great bliss to all those innovative projects that often need to limp forward because of a lack of resources and funding in spite of their merit. Thanks to IndieGogo and Kickstarter now, innovations of all types can now become see the light of the day.

This article is contributed by Mushavvirkhan Balooch — Digital Marketing Expert at Square Root Solutions.

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How Technology Is Bringing a Change in E-commerce

By Guest Contributor on September 15, 2018

The technology trends are affecting the way business-to-consumer transactions are getting changed, helping the consumers keeping a track of online purchases.

Ubiquitous smartphones and social networking apps are changing the lives of people, all over the world, bringing about a transformation in the way they connect with their friends and others. Technology is also shaping the future on online transactions, the way it was previously done. Gone are the days of mindless online wandering by the consumers and thinking twice before ordering an item online, as there are many risks involved. We have hordes of consumers, who are making a beeline towards the numerous mobile ecommerce sites and the greatest advantage lies in the fact that the transactions are performed at a faster rate and at affordable prices.

It is technology that is helping the consumers to keep a track of the online purchases. The trends that are emerging are affecting the bigger picture and it is changing the business-to-consumer transactions as newer opportunities evolve, for both sides of the transactions. There are a variety of tools that are available to the consumers for locating stores, gauging prices, finding alternatives and availing coupons.

There is a revolutionary change in the way business-to-consumer transactions happen and these are:

Change in Consumer-Retailer Relationship

The rules of the conventional retail business is no longer existing. The brands are able to connect with the consumers, without the need to enter the shop or get attracted to the brand in the form of an ad. The brand now resides on the smartphone of the user and this serves the purpose of a constant reminder. The location specific notifications will access the consumers, almost everywhere, even when they are simply passing before your store.

More of Personalized Customer Experience

Technology is evolving the personalization standards. A loyal customer base is always needed by the businesses and these marketing techniques are making them possible. The technological improvements are bringing changes in customer services too.  The social media platforms like that of Instagram are used to get connected with the brands.

Grabbing Attention of the Consumer

The email notifications are getting replaced by the user notifications, at any point in time, unimaginable so far. Promotions used to be detected by the spam detectors and avoided can now grab the attention of the users. New sales and promotions are achieved now with the help of these new forms of notifications.

Dominance of the Smaller Businesses  

Global access to the brands of the smaller businesses are made possible with these online transactions through the ecommerce sites. The mobile ecommerce outlets of these smaller businesses are better than the corresponding ones from WalMart and others. The  ecommerce ecosystem is made buoyant with more and more startups that are cultivated throughout the entire breadth and width of the country. Additionally, starting businesses from home is also made possible with the advent of technology.

Extreme Convenience to the Retailers

The single most driving force behind the growing demand for e commerce activities is the convenience of the service. Automated vehicles and drones are allowing the retailers to tide over the challenges like that same-day-delivery. The use of technology is to resolve the delivery related problems and is already used by the retailers like Amazon.

Technology Trends that will affect the Business-to-Consumer Interactions

There are many retailers who are thinking about implementing latest technologies like Augmented Reality(AR) for their ecommerce counterparts. AR will bring a new dimension to the online transactions for the e commerce businesses. The consumers will not need to visit the shops, physically for a real-life experience, using this technology. It is a new way to discover the products that we need to buy. Autonomous vehicles are used by Google and Amazon for handling the challenges of the same-day delivery services, reducing the cost to a considerable extent.

Consumers are always on the lookout for ways that gives them the piece of their mind, while indulging in the e commerce and the mobile shopping. The priority of the retailers is not to increase the number of consumers, who are willing to shop online, rather improving the experience of the retailers.

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