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Wednesday, March 1, 2017

Kickstarter vs. Indiegogo



Indiegogo and Kickstarter are two of the largest rewards-based crowdfunding platforms out there. They give eligible creators the tools to raise money for projects in a wide variety of categories.

In return for a donation or pledges, backers gain access to cool rewards or experiences.

Fundamentally, these two sites are different from each other in a few important ways, and knowing why can help you choose which site will be best for your project.

Kickstarter

Kickstarter has seen a huge amount of growth in the recent years. At the time of writing, campaigns have raised 2.6 billion using their platform.

With more than 11 million backers and 3.7 million repeat backers, Kickstarter is the biggest platform in the rewards-based crowdfunding space.

Over 114,000 successful projects have launched on their website.

Types of Campaigns Allowed

Kickstarter is different than its competitor Indiegogo in that you can only launch an all or nothing crowdfunding campaign on the website.

This means that you must hit your fundraising goal before the end of your fundraising duration.

Otherwise, you won’t receive any of the funds and your backer’s credit cards won’t be charged.

For example, let’s say you launch a campaign on Kickstarter with a fundraising goal of $100,000 and a campaign duration of 30 days.

At the end of those 30 days, if you’ve only raised $90,000, you won’t be able to keep those funds and none of the backers who pledged money will have their credit card charged.

All of the money will be returned to the backers.

Kickstarter places projects into the following categories: Art, comics, crafts, dance, design, fashion, film & video, food, games, journalism, music, photography, publishing, technology, and theater. Your project must fit into one of these categories.

Platform Rules and Regulations


In the past, Kickstarter has been a bit more curated and selective than their competitor, Indiegogo.

They have more requirements and restrictions that you must take heed of before you hit that launch button.

Kickstarter is open to international backers, but you can only start a project from certain countries.

As this list is always growing, I’d recommend looking at the Kickstarter FAQ before you decide to use the platform.

At the time of writing, Kickstarter is open to creators in the: US, UK, Canada, Australia, New Zealand, the Netherlands, Denmark, Ireland, Norway, Sweden, Germany, France, Spain, Italy, Austria, Belgium, Switzerland, Luxembourg, Hong Kong, and Singapore.

You must have an address, bank account, and government-issued ID based in the country that you’re creating the project in.

 In other words, you must be a permanent resident of one of these countries.

You can also create a project on behalf of a legal entity, like an LLC or corporation.

Like Indiegogo, you must be 18 years or older to create a project, unless you have a parent or teacher who is running the campaign with you.

Aside from the nitty gritty restrictions, you must also abide by a few key regulations.

First of all, your project must result in an end product that can be shared with others.

Usually, creators will offer this end product as a “perk” or “reward” that backers can gain access to when they pledge money.

While that end product could even be an experience or event, there should be something that “happens” or “comes into the world” as a result of raising money.

 Second, you can’t raise money for charity on Kickstarter.

This includes raising money for established nonprofit organizations or raising money to fund expenses related to your life, like education costs or medical bills.

You can raise money that goes towards a project that your nonprofit is working on, like a book, but you can’t just donate the funds to the nonprofit outright.

Along with avoiding charity fundraisers, you must also avoid offering any form of financial incentives and any prohibited items.

Kickstarter has a long list of prohibited items. Some of them, as mentioned previously, include: Rewards that the creator did not make, any item claiming to cure, treat, or prevent an illnessor condition, contests/coupons/gambling/raffles, energy food and drinks. offensive material, offering a genetically modified organism as a reward, offering alcohol as a reward, offering financial/money-processing/credit services, offering financial intermediaries/cash-equivalent instruments, offering travel services, phone services, business marketing services, political fundraising, drugs, nicotine, tobacco, vaporizers, weapons or replicas of weapons, and pornographic material.

Notably, you also can’t offer rewards of things that already exist, or repackage a previously-created product without adding anything new or without aiming to iterate on the idea in any way.

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