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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