Crowdfunding: Kickstarter vs. IndieGoGo

If you're going to start a crowdfunding campaign you will inevitably come to the point where you will need to decide what platform to use. For my first project for my book series, I ended up raising over $35,000 on my own, without either Kickstarter or IndieGogo. For my second campaign called Jim For Life, I purposely choose to go with IndieGogo over Kickstarter. Here's why.

Note: There are plenty of other platforms out there you can use besides these two. These just seem to be the most talked about.

#1 Reason I Went With IndieGogo Instead of Kickstarter

Kickstarter doesn't take all projects. Read their terms. They ask you to submit your project first, and if you pass their gatekeeper requirements you get in. I hate gatekeepers. Sure, I get why they do this, and they have every right to do it, I just don't like it.

#2 Reason I Went With IndieGogo Instead of Kickstarter

Kickstarter forces you to use the Amazon payment system. Ugh. First off, the set up of verification of your bank account is excessive and takes up to 5-days or more. And frankly, forcing people to pay this way is just ridiculous. IndieGogo takes all major credit cards and Paypal.

#3 Reason I Went With IndieGogo Instead of Kickstarter

Fees. From Lockergnome's Chris Pirrillo, Indiegogo offers users the ability to accept funding even when their goals are not met. This comes at a higher percentage (9% underfunded versus 4% for fully-funded projects) but it can help you avoid falling just a hair shy of your goal and losing any chance of funding as a result.

The current fees for projects funded on Kickstarter is 5%. Indiegogo's fees start at 4% and raise to 9% if you fail to reach your funding goal. That makes Indiegogo a better deal for folks with fully-funded projects and the only option for folks willing to self-fund to make up the difference should they miss their goal amount.

#4 Reason I Went With IndieGogo Instead of Kickstarter

Did I mention I hate gatekeepers? If you're going to offer a service, make it open to everyone. Picking and choosing who can use it pisses me off.

Want to see IndieGogo in action? Stop over and drop a buck and get with the Jim For Life project where you can get all of my books for the next year for only $1.00.

 

 

 

Follow Jim Kukral on Twitter: www.twitter.com/jimkukral

Comments

[Rupert Cameron Sully]

08:10 PM on 10/17/2012

Crowd source funding needs to open and specialize. Check out VenTribe.com (crowd sourced funding for gifts. Ironically, or very fittingly I am here trying to work out which platform to run a project on to take VenTribe to the next level. I think its going to be Indiegogo due to the restrictions listed above.

[Eon Puzzle]

12:49 PM on 10/05/2012

Kickstarter, IndieGoGo, and other crowd funding sites offer a convenient venue to folks who want others to help bring an idea to the marketplace. However, as is the case with most marketing services, using these sites yields no guarantee that lots of people will see and take note of the idea being presented. It is for this reason, together with the associated site fees, that Eon Puzzle is attempting the presentation task apart from established crowd funding venues. Will the attempt be successful?

[pietrorea]

10:08 PM on 09/04/2012

But if you're project is good, why does it matter if there are gatekeepers?

[W Michael Cunningham]

03:13 PM on 09/04/2012

Great article. The differences between the sites are accurately portrayed. I discuss this in my new book: The JOBS Act: Crowdfunding for Small Businesses and Startups
http://www.amazon.com/The-JOBS-Act-Crowdfunding-Businesses/dp/143024755X

Also see my group on LinkedIn: Crowdfunding for Minorities and Women. http://www.linkedin.com/groups?home=&gid=4590197&trk=anet_ug_hm

I also discuss these differnces in my crowdfunding webinar: http://jobsact.eventbrite.com

[KELLYGREENblog]

11:04 PM on 09/03/2012

great post, jim. it's clear and concise and very helpful.