Kickstarter vs Indiegogo for projects in 2020 – The Beginner’s Guide for Success

There are quite a few crowdfunding platforms that exist on the Internet at the moment but undoubtedly the biggest platforms are Kickstarter and Indiegogo. Both platforms are very similar to being marketplaces for crowdfunding and take 5% of every campaigns’ earnings. However, there are actually quite a few differences between them.

 

In this article, we will look at the main differences like:

• Platform size
• Success rate
• Audience size and differences
• International availability
• Fixed vs. Flexible funding
• Fees
• Brand
• Video hosting
• Payment options for backers
• Analytics
• Post-Crowdfunding Campaign Options

 

Platform size

 

While neither Kickstarter nor Indiegogo reveals traffic numbers, it has been estimated that Kickstarter amasses between 25 to 27 million unique monthly visitors while Indiegogo has about 9 million. Kickstarter also raised about $2.7 billion from 11.8 million backers since the start of the company in 2009, which Indiegogo raised significantly less. When considering which platform to launch on, it is important to consider what stage your product is in, what categories are available for each, and the type of data you can collect on both.

 

However, the takeaway is that while Kickstarter may be the bigger platform, people should definitely not dismiss Indiegogo because it definitely has other strengths.

 

Success rate

 

Kickstarter has a higher success rate due to its quality control and more selective process, which Indiegogo is a more open platform where companies that are new and inexperienced to go and may not be as successful which lowers the platform’s overall success rate.  Kickstarter also makes it easier to look at success rate stats, which Indiegogo does not divulge any data about it campaigns and earnings.

 

Kickstarter has a success rate of about 35% while Indiegogo’s is around 17%. However, Indiegogo is more open to a variety of different projects and Kickstarter definitely does not to vet projects before they go live, while Indiegogo is more relaxed.

 

Audience size and differences

 

The types of “crowdfunding campaigns” vary between Kickstarter and Indiegogo.  Indiegogo was created as a place for independent filmmakers to find funding for their films and eventually evolved to include every type of market. Kickstarter also features different projects and products, but their most popular categories are gaming and technology.  So, people need to take into account the differences in audiences on both platforms when they decide to launch their campaign.

 

International availability

 

Kickstarter may be the larger platform but it is only available in 18 countries while Indiegogo is available in over 200 countries.

 

Fixed vs. Flexible funding

 

Kickstarter only offers fixed funding while Indiegogo offers both fixed and flexible funding. Fixed “funding“ means that companies only receive money if the campaign has been successfully funded. If they fail to reach their funding goals, all money pledged will go back to its backers. Flexible funding however is where campaigns will receive money from backers regardless of whether or not the campaigns reached its goal. It lets companies get their campaign off the ground faster without having to wait a month for the campaign to wrap up.

 

However, the risk with flexible funding is that companies might find themselves in a position where they did not raise enough capital to get the project up and running. If that is the case, companies have a moral obligation to refund the money to their backers and paying out of pocket for the payment fees. It is very important to always have a backup plan.

 

Fees

 

Both Kickstarter and Indiegogo charge a flat rate of 5%, whether or not the campaign gets funded. Fees can change depending on where the company is located. Companies also need to factor in credit card and PayPal fees.

 

Brand

 

Because of its size and the company’s vetting of projects, Kickstarter is covered more in the press. When you are planning your “marketing strategy” for your campaign, paid advertisements should be part of your overall marketing budget, but the power of word-of-mouth should not be underestimated. Kickstarter’s more stringent vetting helps cut out ill-prepared campaigns, which makes it easier for the press to find compelling products and stories to share.

 

Video hosting

 

Video is an important part of convincing backers that the product is a good one. With Kickstarter, video hosting is provided which means that there is no worry about where to upload the video and what audience to tailor it for. Kickstarter handles everything with easily shareable and embeddable videos.

 

Indiegogo doe not provide video hosting, but it does support YouTube and Vimeo. Both Vimeo and YouTube support comments that can show up on the Indiegogo campaign page, but it is also important to know where the prospective buyers will congregate.

 

Payment Options for backers

 

At the moment, Kickstarter only uses Stripe as their payment option, it lets users use their credit card numbers to pay for a pledge, but there is no support for easy mobile payments like Android Pay or Apple Pay.

 

Indiegogo supports a variety of payment option for backers, including credit cards, PayPal, and Apple Pay. By offering more payment options, there was a 28% increase in contributions. It makes it easier for backers to commit to a project without jumping through so many obstacles just to contribute.

 

Analytics

 

It is important to obtain as much data through analytics in order to run a successful crowdfunding campaign. Kickstarter offers Google Analytics to help companies see information about funding, top referrers, reward breakdown, and a continuous feed of all project activity quickly. They do have a limitation in Google Analytics where traffic and pledges from its mobile app aren’t distinguished from other traffic, which makes it impossible to monitor exactly where traffic and conversation are coming from.

 

Indiegogo provides a bit more data for campaigns with the ability to track Facebook and Google ads. It also gives companies access to their backer’s list immediately so that they are able to tailor their email marketing campaigns effectively while Kickstarter does not until the campaign ends.

 

Post-Crowdfunding Campaign Options

 

With Indiegogo, campaign owners can choose to employ InDemand, which is a platform that is an extension of a regular crowdfunding campaign that makes it easier to creators to keep raising funds after their campaign ends. It also lets creators continue to grow their community, reach new audiences and receive ongoing exposure on the Indiegogo platform. They are only eligible for InDemand if they meet their goal by the deadline and are in good standing with Indiegogo.

 

Kickstarter users can also transition to InDemand, but they must contact the Indiegogo team and they will help them transition their campaign over to Indiegogo. Once their campaign is set up, they have the ability to edit their story, perks, payment details, etc.

 

Conclusion

 

While both are crowdfunding platforms, it ultimately depends on the product or project you are creating. If you have a creative project that fits the rules of Kickstarter, it would probably be the best choice due to its sheer size and audience reach. However, if your campaign is charitable in nature, in the “concept” stage, or is eligible for Indiegogo, that might be the best platform.

 

Sometimes it can be difficult to run everything and stay on it constantly, so employing companies like Pressfarm can help with public relations and creating everything needed to build a successful crowdfunding campaign.