0

Indiegogo vs Kickstarter – An Overview

If you never backed a project on a crowdfunding platform, you might think “Are there any differences? How compares Indiegogo vs Kickstarter?”. Most of the times someone gets aware of crowdfunding campaigns through ads on Social Media channels like Facebook, Twitter, Instagram or Pinterest. Campaign creators and associated marketing companies discovered the potential of these channels to “recruit” new leads for their campaigns. If a new backer is checking then what Kickstarter or Indiegogo is all about, he or she then will discover that there are essential differences between those two biggest crowdfunding websites. Let’s have a look how the comparison Kickstarter vs Indiegogo turns out, either from backers or creator perspective.

Differences for Backers

When you are starting your crowdfunding passion, in 95% of the cases you will begin either on Kickstarter or on Indiegogo. These are the veterans in the crowdfunding scene and are both online since a decade. Therefore, you will find a lot of active crowdfunding campaigns on each of them. But before backing a project, it is important to know about the differences between Indiegogo and Kickstarter. On both platforms you will need to set up an account and payment is on both possible by Credit Card.

Without further ado – Kickstarter

Let’s have a closer look to Kickstarter. Kickstarter works on an all-or-nothing basis. That means, backers will only be charged if the campaign was successfully funded. When backing a campaign, you need to add your credit card details, but the charge will be done only after the campaign ended and the funding goal was reached. Address details are not collected when backing. They will be collected through a survey after the campaign has ended. If there are specifications of your pledge like color choices or sized, this data will be also provided in the survey.

My observation from the last months was that creators start to set really low funding goals to make sure, it appears to be successful. It always looks a bit strange if a campaign with a technical gadget is set with a funding goal of just 5.000 USD, as the development is costly and to set production, find distribution solutions is also not free of charge. Often campaigns with a low funding goal have an estimated delivery date, which is not too far in the future. If the original funding goal is over-exceeded, it often happens that the delivery of the rewards to the backers is delayed which might cause frustration.

Advantages:

  1. Credit Card will be only charged after campaign ends and successfully funded
  2. Cancellation of pledges very easy as not credit card charge while campaign active
  3. Approval system – creators have to submit project to Kickstarter and after a check Kickstarter approves or disapproves of project – this might give higher protection of fraudulent creators

Disadvantages:

  1. Often delays in delivery as low funding goals and too short estimated delivery dates to make the campaign look more tempting and successful
  2. Kickstarter is not really taking care of backers if the creator misses communicating and update the backers

Indiegogo – Not that indie anymore

Indiegogo on the other hand works a bit different from Kickstarter. Especially for backers there are significant differences in the whole backing process. When backing a project on Indiegogo you need to provided in your pledge your address details and credit card details. Indiegogo will charge your credit card directly. If a campaign was not successful, your pledge will be refunded. However, it can take some time until you will be able to see the refund back on your account. Creators can choose if they want to set a fixed funding goal or if it should be flexible. Fixed funding goal is basically the all-or-nothing solution which is Kickstarter is using. If the fixed funding goal is not reached, backers will be refunded and campaign was unsuccessful. Flexible funding goal means basically that the project is funded no matter how many backers have pledged. Here is always kind of uncertainty what happens when just a few backers are interested in the product and if production will be possible. Creators should refund backers, if they are not able to fulfill the project…pronunciation is on “should”.
If no further specification is necessary there won’t be any survey as address details are already collected.

Advantages:

  1. Flexible funding goals let creator be able to produce their product even with low amount of backers
  2. Wider range of projects as no approval process

Disadvantages:

  1. Credit Cards of backers will be charged immediately after pledge is done, funds need to be available in time of placing the pledge.
  2. Delays in refunds if the backer changes mind and canceling the pledge
  3. My observation: Creators on Indiegogo seems not as communicative as on Kickstarter, also backers are less commenting
  4. No approval check through Indiegogo which means everyone can start a crowdfunding campaign, even without having a real product or prototype

So it is really up to you, if you prefer to back a project on Kickstarter or on Indiegogo. Both platforms are legit and a lot of products came to life through a crowdfunding campaign.

Indiegogo InDemand – What is that?

Usually when a crowdfunding campaign is over, creators have not really an opportunity to collect more funds. Often they don’t have yet an own online shop and it is not really making sense to open one until the production is finished and the product really available. Here is Indiegogo InDemand a good solution for creators to keep going with marketing campaign and get more people on board. In InDemand you will find successful campaigns from both worlds…so Indiegogo and Kickstarter. The funding amount you will see here is combined from the previous campaign and also the InDemand campaign. Usually the prices at InDemand are a bit higher than you saw them in the first stage of the crowdfunding campaign but will be still much lower as the estimated retail price. Also, if backing on Indiegogo InDemand, expect to receive your reward after the regular Indiegogo or Kickstarter rewards have been shipped. When you place your order on Indiegogo InDemand, your credit card will be charged immediately, you want to take care of having available funds on the card before placing the order.

There is no better or worse

As you could read above there some differences between the two biggest crowdfunding sites. For backers the main difference is that on Indiegogo your credit card will be charged very soon after you pledge a project. At Kickstarter it is all or nothing. When you pledge, your credit card will not be charged. Just when the campaign is over, you pay. Indiegogo has a wide variety of projects as there is no approval system. Anyone can start a crowdfunding campaign. Kickstarter projects are running through an approval check. Is backing there safer? No, not really. You don’t have any guarantees that the project will be successful.

Crowdfunding is exciting and no matter on which website you start to back your first campaign, it will be an interesting journey and experience.

Thank you for reading. If you have anything to add, need a hand of any kind or just want to connect, please leave a comment below.

Keep on rocking!

Joe

 

 

 

 

Leave a Reply

Your email address will not be published. Required fields are marked *