So, you've got a fantastic idea and you're ready to bring it to life through crowdfunding. But now you find yourself faced with a crucial decision: Indiegogo or Kickstarter? Before you make your choice, it's essential to understand the differences in fees between these two popular crowdfunding platforms. In this article, we'll provide you with an overview of the key differences in fees between Indiegogo and Kickstarter, allowing you to make an informed decision that will maximize your crowdfunding success. Let's dive in!

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Indiegogo Fees

Platform Fee

Indiegogo charges a platform fee for hosting your crowdfunding campaign on their website. This fee covers the cost of using their platform, including access to their campaign management tools, customer support, and the ability to reach a wide audience of potential backers. The platform fee on Indiegogo is determined based on the type of campaign you choose: fixed or flexible.

Payment Processing Fee

In addition to the platform fee, Indiegogo also charges a payment processing fee for each transaction made on your campaign. This fee is collected to cover the costs associated with processing payments, including credit card fees and other transaction fees. The payment processing fee on Indiegogo is typically a percentage of the total funds raised.

Additional Fees

Indiegogo may also charge additional fees for certain features or services that you choose to add to your campaign. For example, if you decide to participate in their InDemand program, which allows you to continue raising funds even after your initial campaign has ended, there may be an additional fee associated with the program. It is important to carefully review the terms and conditions of Indiegogo's services to fully understand any potential additional fees.

Kickstarter Fees

Platform Fee

Just like Indiegogo, Kickstarter charges a platform fee for hosting your crowdfunding campaign on their website. This fee covers the cost of using their platform and accessing their campaign management tools. The platform fee on Kickstarter is also determined based on the type of campaign you choose: all-or-nothing.

Payment Processing Fee

Kickstarter, like Indiegogo, also charges a payment processing fee for every transaction made on your campaign. This fee is collected to cover the costs associated with processing payments, including credit card fees and transaction fees. Kickstarter utilizes Stripe and BackerKit for their payment processing, providing a secure and reliable way to handle funds.

Additional Fees

Kickstarter may have additional fees if you choose to enhance the aesthetics and design of your campaign page. While these enhancements can help make your campaign more visually appealing and engaging, they do come at an additional cost. It is important to consider these fees in your budgeting process to ensure they are accounted for.

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Platform Fee: Indiegogo: Fixed vs Flexible Campaigns

Indiegogo offers two types of campaigns: fixed and flexible. With a fixed campaign, you set a specific funding goal, and if you don't reach it by the end of your campaign, all the funds are returned to the backers. For a fixed campaign on Indiegogo, the platform fee is generally lower compared to a flexible campaign.

On the other hand, with a flexible campaign on Indiegogo, you can choose to keep the funds you raise, whether or not you reach your funding goal. However, the platform fee for a flexible campaign is typically higher. It's important to weigh the pros and cons of each campaign type and consider your project's specific needs before deciding which option is best for you.

Platform Fee: Kickstarter: All-or-Nothing Campaign

Kickstarter exclusively offers all-or-nothing campaigns, meaning you must reach your funding goal within the specified campaign period in order to receive any funds at all. If your campaign falls short of the goal, no funds are collected from the backers. Kickstarter's platform fee is typically higher compared to Indiegogo, but it is important to consider the benefits of an all-or-nothing model in terms of project planning and budgeting.

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Payment Processing Fee: Indiegogo: Stripe Integration

Indiegogo utilizes Stripe as their primary payment processor. This integration allows for seamless handling of transactions and ensures a secure and efficient payment experience for both project creators and backers. The payment processing fee on Indiegogo, which covers the costs associated with Stripe integration, is usually a percentage of the total funds raised.

Payment Processing Fee: Kickstarter: Stripe and BackerKit

Kickstarter also uses Stripe as their payment processor, providing a reliable and secure way to handle funds. In addition, Kickstarter offers integration with BackerKit, a crowdfunding fulfillment and survey tool. This integration streamlines the process of managing pledges and fulfilling rewards. Any associated fees with these payment processing services should be included in your budget planning.

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Additional Fees: Indiegogo: InDemand Program Fee

Indiegogo's InDemand program allows you to continue raising funds even after your initial campaign has ended. While it provides an opportunity to extend the duration of your campaign and attract additional support, there is typically a fee associated with participating in the InDemand program. It is important to consider this fee as part of your overall campaign budget.

Additional Fees: Kickstarter: Aesthetic and Design Upgrades

If you wish to enhance the aesthetics and design of your Kickstarter campaign page beyond the standard templates, Kickstarter offers additional customization options at an added cost. These options can help make your campaign page more visually appealing and engaging, but it is important to take into account the associated fees when planning your budget.

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Refunding Fees: Indiegogo: Refunds and Chargebacks

In the event that you need to issue a refund to one of your backers or if a chargeback occurs, Indiegogo provides guidelines and support for handling these situations. However, it is important to note that there may be associated fees for processing refunds or chargebacks. Carefully review Indiegogo's refund policy and terms of service to fully understand any potential fees.

Refunding Fees: Kickstarter: Handling Failed Projects

If your Kickstarter project fails to meet its funding goal, Kickstarter does not collect any funds from your backers, as it is an all-or-nothing platform. While there may not be specific refund fees associated with failed projects on Kickstarter, it is important to communicate and handle any pledges or rewards in a timely and transparent manner, in alignment with Kickstarter's guidelines.

Processing and Distribution: Indiegogo: Flexible Funding

Indiegogo's flexible funding model allows you to keep the funds you raise, even if you don't reach your funding goal. This can be advantageous for projects that require partial funding to proceed. However, with flexible funding, you should be prepared to manage the logistics of processing and distributing funds, even if you fall short of your goal.

Processing and Distribution: Kickstarter: All-or-Nothing Funding

Kickstarter's all-or-nothing funding model means that you must reach your funding goal within the specified campaign period in order to collect any funds. This can be beneficial for projects that require full funding to be successfully executed. With all-or-nothing funding, you can minimize the logistical challenges of managing funds if your campaign falls short.

Project Approval Process: Indiegogo: No Approval Required

Indiegogo generally does not require project creators to go through an approval process before launching their campaigns. This allows for greater flexibility and ease of starting a campaign. However, it is still important to ensure that your project complies with Indiegogo's terms and conditions and any legal requirements.

Project Approval Process: Kickstarter: Project Review Process

Kickstarter has a project review process in place before campaigns can be launched. This includes reviewing the project's content, rewards, and campaign details to ensure they meet Kickstarter's guidelines. While this process provides an added layer of quality control, it may take some time to get your campaign approved and launched on Kickstarter.

International Campaigns: Indiegogo: Availability in Multiple Countries

Indiegogo offers support for campaigns in multiple countries, allowing creators to reach a global audience. This international availability can be advantageous for projects that aim to attract backers from around the world. However, it is important to consider any additional fees or legal requirements when running an international campaign on Indiegogo.

International Campaigns: Kickstarter: Limited Country Support

Kickstarter has limited country support compared to Indiegogo, which means that not all countries are eligible to create or back projects on the platform. While Kickstarter has expanded its reach over time, it is essential to check the list of supported countries to ensure that your project can reach its intended audience.

Crowdfunding Success Rates: Indiegogo: Higher Success Rates

Indiegogo boasts higher success rates compared to Kickstarter. This may be attributed to several factors, including the flexible funding model and the international reach of the platform. However, it is important to note that success rates can vary depending on the nature of the project and the level of effort put into marketing and promotion.

Crowdfunding Success Rates: Kickstarter: Greater Publicity Opportunities

Kickstarter offers greater publicity opportunities compared to Indiegogo. The platform has a larger user base and a more established reputation in the crowdfunding community. This increased visibility can potentially attract more backers and help projects gain wider exposure. However, it is important to plan and implement a comprehensive marketing strategy to make the most of these opportunities.

In conclusion, while both Indiegogo and Kickstarter provide valuable platforms for crowdfunding, there are distinct differences in their fee structures, campaign models, payment processing options, and additional features. By carefully considering these factors and aligning them with your project goals and budget, you can make an informed decision about which platform will best suit your needs.