So, you're looking to embark on a crowdfunding journey, but you're unsure which platform to choose – Indiegogo or Kickstarter? Well, you're in luck! In this article, we'll compare the fees associated with both platforms, giving you a clear understanding of the key differences between Indiegogo and Kickstarter. By the end, you'll have all the information you need to make an informed decision and kickstart your project with confidence. Let's jump right in!
Key differences between Indiegogo and Kickstarter fees
When it comes to crowdfunding platforms, Indiegogo and Kickstarter are two of the most popular choices for creators looking to bring their ideas to life. While both platforms share the goal of helping individuals and businesses raise funds, there are some key differences to consider, especially when it comes to the fees associated with launching a campaign.
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Overview of Indiegogo fees
Indiegogo offers a straightforward fee structure for campaign creators. They charge a 5% fee on the total funds raised if you reach your funding goal, and a 9% fee if you do not meet your goal. This means that if your campaign is successful, you will face a lower fee compared to Kickstarter.
Campaign fees on Indiegogo
Indiegogo's campaign fee structure is solely based on the outcome of your campaign. If you reach your funding goal, you will be charged a 5% fee on the total amount raised by your campaign. This fee covers the services provided by Indiegogo in hosting and promoting your campaign, as well as providing customer support throughout the process.
If your campaign does not reach its funding goal, Indiegogo will charge a higher fee of 9% on the total amount raised. This fee structure encourages creators to set realistic goals and provides an incentive to reach the intended funding target.
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Payment processing fees on Indiegogo
In addition to the campaign fees, Indiegogo also applies payment processing fees to every transaction. These fees are charged by the payment gateway used to handle the transfer of funds. For campaigns based in the United States, the payment processing fee is 2.9% plus a $0.30 transaction fee per contribution. For campaigns based outside the United States, the fee varies depending on the country and currency.
Additional fees on Indiegogo
Indiegogo offers additional services and features that creators can choose to incorporate into their campaigns for an extra cost. These may include things like email marketing tools, analytics reports, and enhanced customer support options. The fees for these additional services vary depending on the specific features chosen by the creator.
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Overview of Kickstarter fees
Kickstarter, like Indiegogo, charges fees to campaign creators. However, their fee structure differs from that of Indiegogo. Kickstarter applies a 5% fee on the total funds raised if the campaign reaches its funding goal.
Campaign fees on Kickstarter
Kickstarter's campaign fee is the same as Indiegogo's when the funding goal is achieved. If your campaign is successful, Kickstarter will charge a 5% fee on the total amount raised. However, if your campaign does not meet its funding goal, Kickstarter does not charge any fee.
This means that while Kickstarter does not penalize you with a higher fee for failing to reach your goal, it also does not offer the same level of support and incentive for success as Indiegogo does.
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Payment processing fees on Kickstarter
Similar to Indiegogo, Kickstarter also applies payment processing fees to every transaction. For campaigns based in the United States, the payment processing fee is 2.9% plus a $0.30 transaction fee per pledge. For campaigns based outside the United States, the fees vary based on the country and currency.
Refund fees on Kickstarter
If a backer requests a refund on Kickstarter, the platform does not charge any additional fees. However, it's important to note that the payment processing fees are non-refundable, as they are charged by the payment gateway and not by Kickstarter itself.
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Additional fees on Kickstarter
Kickstarter does not offer as many additional services and features as Indiegogo does. The platform focuses primarily on the core crowdfunding experience, with fewer options for creators to add on extra features for an additional cost.
Comparison of campaign fees
When comparing the campaign fees of Indiegogo and Kickstarter, there is a clear difference in how they incentivize creators to reach their funding goals. Indiegogo's higher fee for campaigns that fall short encourages creators to set realistic goals and strive for success. In contrast, Kickstarter does not charge any additional fees for failing to reach the goal, which may make it less appealing for those seeking extra support and motivation.
Comparison of payment processing fees
Both Indiegogo and Kickstarter have similar payment processing fees, with a 2.9% charge for campaigns based in the United States. The additional $0.30 transaction fee per pledge adds a small cost to each contribution. For campaigns based outside the United States, the fees may vary depending on the country and currency, but the difference between the two platforms remains relatively minor in this aspect.
Comparison of refund fees
In terms of refund fees, both Indiegogo and Kickstarter do not charge any additional fees when a backer requests a refund. However, it's worth noting that the payment processing fees are non-refundable, as they are charged separately by the payment gateway.
Comparison of additional fees
When it comes to additional fees for extra services and features, Indiegogo offers a greater variety of options compared to Kickstarter. Creators on Indiegogo can choose to enhance their campaign with various tools and benefits, but these come at additional costs. Kickstarter, on the other hand, focuses more on the core crowdfunding experience and provides fewer options for creators to add on extra features.
Summary of fee differences
In summary, Indiegogo and Kickstarter differ in their fee structures and the incentives they offer to campaign creators. Indiegogo charges a lower fee for successful campaigns but imposes a higher fee for campaigns that fall short. They also provide a wider range of additional services and features at an extra cost. Kickstarter, on the other hand, does not charge any additional fees for failing to reach the funding goal, but offers fewer options for creators to enhance their campaigns.
Ultimately, the choice between Indiegogo and Kickstarter depends on the preferences and goals of the campaign creator. Consider the fee structures, additional services, and overall support offered by each platform when deciding which one is the best fit for your crowdfunding campaign.
