Choosing Your Crowdfunding Platform: GoFundMe vs. Kickstarter vs. Indiegogo
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There are many advantages and disadvantages to the major crowdfunding platforms. This article will help you decide what platform is right for your project.
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Crowdfunding can be a valuable resource for acquiring startup capital for your small business, funding the recording of your new album, or even paying for an expensive medical procedure which you otherwise could not afford. Crowdfunding is growing bigger and better all the time, with more and more platforms becoming available. When setting out to procure funding for your project, it is important to consider the benefits of each platform and decide which one will work best for you.
In this article, we will focus on three of the largest crowdfunding platforms: GoFundMe, Kickstarter, and Indiegogo. We will look at various aspects of these platforms, including the platform’s main focus, community, funding policies, and associated fees.
One major differentiation between crowdfunding platforms is the principal focus. For example, the focus of GoFundMe is on individuals and personal causes. The goal of campaigns is typically to fund a medical treatment, application fees, educational costs, travel costs, weddings, funerals, and other life events and personal expenses.
Due to the personal nature of these campaigns, many of the funds donated to GoFundMe campaigns are given by people who know the campaigner personally. Because of this, GoFundMe campaigns are highly shareable and are easy to post on Facebook, Instagram, Twitter, and other social media sites.
Compared to platforms like Kickstarter, GoFundMe does not have a prominent community donors, but does not really need one due to its interactivity with social media. One downside of this is that if your friends and family do not have the means to offer assistance, you may not have much luck meeting your funding goals.
GoFundMe allows you to keep whatever funds you raise regardless of whether your fundraising goal is met. This means that you have the possibility of at least partially funding your campaign and have the possibility of raising the rest of your funds elsewhere.
GoFundMe’s percentage fees are the same whether your goal is fully funded or not, which may not be ideal if your campaign underperforms. There is no charge to create and share a campaign, but GoFundMe takes a 5% fee for each donation plus an additional 3% processing fee. With an 8% overall charge, GoFundMe’s fees are fairly comparable to other platforms.
YouCaring vs. GoFundMe
Prior to 2018, YouCaring was another option that could be used for crowdfunding. In 2018, the company and its platform were acuired by GoFundMe. In 2018, there are no differences between the two platforms, since they are now the same.
GoFundMe is most likely your best option if your cause is personal in nature. Because GoFundMe does not have a prominent community, campaigns are highly shareable on social media and your main donors will most likely be your friends and family members, which can be good or bad depending on how much money they have.
All in all, GoFundMe can be a great option depending on the nature of your cause and how much money you’re hoping to raise.
The main focus of Kickstarter is on creative projects such as music, art, video games, film, comics, technology, and so on. In other words, all the cool projects are on Kickstarter.
Kickstarter has a strong independent community of people who love to fund new and exciting creative projects. About 65% of projects based on Kickstarter reach their goals. Though far from a sure thing, this means that you have a fairly good chance of being funded if you are creating a product that will get people excited.
Kickstarter has an “all or nothing” policy on funding, meaning that you must reach your fundraising goal within the designated time period in order to keep any of the raised donations. This is an advantage of the platform in most cases, as many donors will expect your project to be fully realized even if you do not receive your full funding. This “all or nothing” policy helps protect the campaign organizer from the unrealistic expectations of donors.
For unsuccessful campaigns, Kickstarter collects no fees and donors have their funds returned to them. For projects that are fully funded, Kickstarter takes a 5% overall fee from the total funds, as well as a 3 to 5% processing fee for each pledge, making the overall fee roughly equivalent to GoFundMe or slightly higher.
Kickstarter is the definitive platform for creative projects. If your campaign fails to reach its goal, you’ll be no worse off than when you started. And if your product is good enough to get people excited, they will practically be throwing their money at you.
Unlike GoFundMe and Kickstarter, Indiegogo does not have a specific focus on a particular type of campaign. Rather, Indiegogo accepts all nature of fundraising campaigns and is known for hosting a wide diversity of projects across many industries. For this reason, Indiegogo might be a good choice if your project does not necessarily fall within the scope of the personal campaigns or artistic endeavors that GoFundMe and Kickstarter cater to, respectively.
Indiegogo’s diverse community might be a benefit to your campaign, but it might also give your project has a lot of competition for funding. Overall, Indiegogo has lower traffic than the other options that we have discussed and smaller contributions from donors overall. However, it can still be a viable option if your fundraising goal is relatively low.
Indiegogo allows the campaign organizer to choose whether to adopt a fixed “all or nothing” funding option (such as Kickstarter) or a flexible option where you keep whatever you make (such as GoFundMe). This puts the choice in your hand, and gives you the power to choose what is best for your particular project.
An important thing to consider when deciding on your funding policy is that if you choose to keep whatever you make you will have to pay fees regardless of whether you meet your goal or not. With an “all or nothing” plan, you will only need to pay fees if your project is 100% funded. There are no starting fees to create your campaign, but there is a 5% overall platform fees for projects that are funded (either fully or partially) as well as a 3% plus 30 cent fee per credit card transaction and 3-5% for PayPal transactions. All in all, this means that the associated fees are fairly comparable to Kickstarter.
Indiegogo is a good crowdfunding option if you have relatively low fundraising goals, as well as if your project does not fit within the niches catered to by GoFundMe or Kickstarter. Otherwise, you are probably better off going with the other options discussed.
Overall, all three of these platforms have their own merits, and any one of them could be perfectly suited to your project. There are many smaller platforms out there which are worth looking into as well. The important thing to consider when choosing your platform is the nature of your project and what goals you are hoping to achieve. With the increasing popularity of crowdfunding and the growing number of sites, the right platform is out there somewhere just waiting for you.
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Why do these exist? Like, seriously...
Don't have the money to take your children to Disney? Do you need a new kitchen and think your friends should pay for it? Or do you just want a new car?
If you don't have the money to do these things, it's fine. You can start a crowdfunder because fuck getting money yourself. Am I right?
If you have gone through life making poor choices, not educating yourself or spending all your days playing minecraft it's fine. You still deserve the same things as everyone else and websites like Indiegogo, kickstarter and gofundme help make it possible.
This might be one of the worst crowdfunding attempts we have seen. I hope you enjoy, and don't get too angry. This guy is genuinely just a sad human.
COREY NEEDS MONEY TO SUUUUURRRVIIIIIIVEEEEE
Corey is a 45 year old man who has not worked since his 20's. Due to decades of alcoholism and lazyness Corey is unable to work. He has been on social security for over 20 years, which his mother collects for him claiming he has a bad back.
Corey lives in a trailer park, his mother controls his money. Every 4 days he has to depend on her for groceries and whatever else he needs to survive. He needs a car, a new house, some clothes and he expects you to pay for it, he's only asking for $100,000.
What is he going to do with money raised you ask? Well he needs to hire a SEO company. Why does an out of work alcoholic need to hire a SEO company? I don't know...
Another unusual fact about this corey actually paid $400 to get radio adverts published promoting his Go Fund Me. You can listen to them here.
Why would a man with such little money take out radio adverts on a shitty compaign like this or prioritise SEO agencies over things like getting medical attention so he can get a job? We do not know.
Corey, at 45 years old owns 4 items of clothing. 2 pairs of shorts and 2 shirts. He has to walk to the store... in zero degree weather and carry everything back to his trailer, which is located in a trailer park. His existance is so sad...
Amazingly, this gofundme has been shared over 150 times and has raised $5 which is just incredible. Corey might be the biggest loser on Go Fund Me
"THAT DOG IS GETTING RAPED" - Terry A. Davis
Sir, I can do you a nice SEO.
Sir, I can do you a nice SEO.
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