Kick starter
So chances are you’ve heard of Kickstarter. You probably also have a good handle on the basic pros and cons of this platform, but to be thorough, let’s cover our bases and start from the beginning.
Today, crowdfunding is mostly synonymous with Kickstarter. It is the largest crowdfunding platform out there. It also has plenty of metrics that are happy to sing its praises: Kickstarter campaigns have already raised more than $2 billion. It has hosted 95,000 successful projects, has a total of 9.7 million backers, of which a third support various campaigns. Over 100 (132 actually) have passed the $1 million mark. Another 2,355 campaigns have raised over US$100k. Do I need to continue?
This crowdfunding Goliath has 15 campaign categories. The Film & Video, Music, and Publishing categories are the most popular (you’ll find most campaigns registered in one of them), but it’s the Gaming, Technology, and Design categories that really excite backers. These last three are the most funded groups on the site (as a side note, Wednesday afternoon is the time when most backers put their hands in their pockets).
Impressed yet? Well, you might be a little less so when you know that all those impressive statistics only represent 36.69% of Kickstarter backers. The rest (more than 60%) do not achieve their objectives.
But don’t be discouraged, Kickstarter still has a few tricks up its sleeve. With a reputation for launching wacky, innovative, and wonderful ideas, Kickstarter receives a fair amount of coverage from the media and bloggers. A well-placed article could earn you a spot in that top 37%.
indiegogo
Initially focused exclusively on independent films (hence the name), Indiegogo began accepting projects from any category within a year of its launch. Established to provide more opportunities for backers than Kickstarter, Indiegogo is generally perceived as a less strict platform. It is available in more than 200 countries and offers more categories (24 vs. 15 on Kickstarter). It also gives backers control over whether they want fixed (all or nothing) or flexible (creator gets how much they collect) models.
It may not win on the PR bets, but Indiegogo certainly has more campaigns than Kickstarter. At any given time, it has around 10,000 campaigns live (Kickstarter has 6,000) and hosts an average of 260 new campaigns every day. It’s not that complicated with metrics, either (you’ll be hard-pressed to find the kind of statistical data that Kickstarter is happy to put out), but you’ll be in for an odd estimate or three.
If Kickstarter estimates that around 37% of its campaigners are successful, then the digital world puts Indiegogo’s success rate at 8-9%. It sounds terrible, but it has a few other things going for it. Their flexible funding scheme allows you to get funding without necessarily hitting your goals, plus our successful Indiegogo campaigners also tell us that the customer support is second to none (not something Kickstarter campaigners tend to agree with). Add to that the fact that contributions are non-refundable, so the creator knows exactly how much they’ve raised (Kickstarter campaigns tend to lose 5-7% of backers – more on that later), and Indiegogo is starting to look like an attractive option.
It’s also worth noting that the culture of different crowdfunding platforms varies quite a bit, so it’s important to clearly understand your audience. If they are more likely to opt for one platform over another, then you should take that into account. Familiarity builds trust and makes visitors more open to promises.
So how do you know which platform is likely to be a better fit for your audience? Generally speaking, you’ll tend to find more artists, musicians, filmmakers, geeks, and tech gadget creators on Kickstarter. You’ll see more small businesses, hot ideas, NGOs, and mass manufacturing on Indiegogo.
The demographics between the platforms also vary. Indiegogo has a more female-friendly audience and gets more traffic from Facebook than Kickstarter.
Therefore, before deciding which platform to choose, take a close look at your project category, marketing strategy, costs, appropriate financing schemes, and goals.
important to know
Remember that the platform will not do the job on its own and you have to work hard if you want to be successful. Explore our Blog to find out how.