The founder of the company Abyss Lights Studio Evgeny Zhukov, launched more than 100 crowdfunding campaigns, the major differences of the two platforms. According to research by the Huffington Post, at the end of 2016, there were more than 2 thousand crowdfunding online platforms (including equity funding, charity funding, non-profit financing and other types of collective financing).
The variety of platforms is really amazing. However, purely in the field of crowdfunding (i.e. raising funds for the project directly from the end consumers of the product) of global leaders remain Kickstarter and Indiegogo. Despite the clear dominance of indicators Kickstarter over Indiegogo, the question of “Where to start. On Kickstarter or Indiegogo?” can be constantly heard from the mouths of those who are preparing for their first crowdfunding campaign.
Both platforms were founded in the US around the same time. Indiegogo in January 2008 in San Francisco, Kickstarter, in April 2009 in new York. In the first years of both platforms was approximately a foot, not much intersecting and focusing on various topics.
Indiegogo was positioned primarily as a platform for independent filmmakers, while Kickstarter has offered himself as a fundraising aggregator for makers, crafters and all techno geeks. However, in 2012, there was a precedent that dramatically changed the rules of the game. During the year several projects were able to approach and even surpass the level of one million dollars. TikTok ($942 thousand), the Elevation Dock ($1,464 million), Double Fine Adventure ($3,336 million) and Pebble ($10,226 million).
This led to a sharp rise in the popularity of crowdfunding and, therefore, to make it exotic in one of the most popular tools of the early financing of start-UPS. At the same time among the two platforms decided by the leader and there was a sharp separation from Kickstarter, Indiegogo, which persists to this day. Before you start to compare the main indicators of both platforms, I want to mention one little-known but very important fact.
In 2014, Kickstarter deliberately and quite consciously reincorporating B-Corp that the law obliges them to maximum openness and transparency in all aspects of its activities. This, as we shall see later, has benefited the platform and projects that it will run. In the end, Kickstarter regularly publishes open source statistics, while Indiegogo withholds his success from the public eye. So Indiegogo are often based on “circumstantial evidence”.
However, the order of the data to determine it is really. As can be seen from the table, the only advantage of Indiegogo in this group of parameters is larger the number of concurrent active projects per unit of time.
It is worth mentioning that among the Internet scams in recent years it has become popular to create an Indiegogo campaign-doubles successful campaigns from Kickstarter and collect in your pocket the money the unsuspecting Bekirov. That is why in two or three days after the successful launch on Kickstarter, I advise all my clients to look at Indiegogo and carefully look for double your successful running of the project. Often we find there.
And the second. The group of “currently Active” also fall projects that have successfully collected on Kickstarter and then launched InDemand campaign on Indiegogo. The platform provides the possibility of successful projects (including Kickstarter) to continue raising funds after the end of their campaign.
In appearance, this draft does not define what in fact it InDemand stage of this project. So the quantitative advantage of the “currently active” does not reflect quality. For projects launched on Kickstarter, this figure has been and remains significantly higher than the same values for projects launched on Indiegogo, and is approximately twice.
By the way, it is interesting to compare in retrospect, the success rate of both platforms. According to data published in The Verge, in 2013, in the category of Technology “only 3.6% of projects launched on Indiegogo, reached the planned level of fees, while the success rate of the projects in the same category on Kickstarter amounted to about 34%”. I want to emphasize the level of trust of the press to projects that run on each platform.
As a rule, the projects running on Kickstarter, will get a higher ranking and wider press coverage compared with the projects running on Indiegogo. Moreover, the mention of such a ratio can be found in most comparisons of the two platforms, there are even journalists specializing in the search and public lighting scams primarily from the platform Indiegogo. For Example, James Robinson.
Why do I think the advantage of a fixed financial model “All or nothing” (VIN) against the “Take all myself” (ZVS). Because it is such a financial model is the most fair and logical in the relationship between the sponsors and their backers. VIN model clearly reflects the very essence of crowdfunding. “I have an interesting idea you have — money.
Lets can help each other if you like my idea.”. According to a study published in may 2015, the campaign with the DR model as a whole less successful and bear much higher risks of default of obligations in comparison with campaigns of model WINES. The problem is that the failure of the campaign models VIN does not result in obligations to backers.
However, good luck at the DRS models is often technically the same failure model WINE, but leaving with the money, the author of the project receives a “load” of the commitments he is unable to perform. Of course, Indiegogo does not obligate the sponsors to select only the DR-model. However, for the inexperienced beginner it looks very attractive win-win option that is not a sin and to pay 9% instead of the standard 5%.
The realization comes later when the money has already been spent, and the product is still not ready. Thats what happened on my very first crowdfunding project five years ago, for which I still feel ashamed and annoyed.
It should add two more facts: 95% of campaigns on Indiegogo are run on the model of the ZVS. 80% of the campaigns on Indiegogo are unable to collect even a quarter of the goal. In the end, the DR-model (or in the original so-called Flexible funding) is one of the most serious causes of failure of many projects after the allegedly successful on Indiegogo fees.
On this subject there is a great opus. However, an interesting advantage of Indiegogo is the opportunity for non-profit charitable projects to start their campaign on the platform of a subsidiary of Generosity at a zero rate. Pure charity, Indiegogo will not charge you a penny.
However, Im not sure, how do altruism Indiegogo their billing partners. As can be seen from the above table, clearly Indiegogo provides more choices and degree of freedom the authors of the projects. The platform is open to authors from 224 countries (Kickstarter only 21).
Also on Indiegogo over a wide range of categories, compared to Kickstarter. However, it is worth mentioning that each category on Kickstarter is further subdivided into many sub-categories. In this case, the overall level of diversity categories on Kickstarter will easily pass 24 categories on Indiegogo.
Are there any restrictions in terms of the projects. If all you can offer as a reward to Becker for assistance. There is a legend that supposedly Indiegogo has no formal list of banned topics. Of course there are General guidelines in the rules of the platform about what you cannot offer as rewards, but certainly it is not as strict as the list of banned topics from Kickstarter.
For example, Indiegogo has nothing against porn or trade of living organisms, particularly GMOs. Well, political crowdfunding they also no stranger to. Overall, a great platform to raise funds for the presidential candidate from the party of genetically modified exhibitionists, where the rewards every Becker gets a kitten-mutant. No objection from the Indiegogo shouldnt be, since its not against the rules.
However, both platforms are strongly opposed to as rewards to backers would be invited, lottery tickets, shares in the business, alcohol, tobacco, weapons, ammunition or even toy replicas of weapons, although it was not always. And even so. Recently we were pleased with the backend developers from Indiegogo. Finally their child is beginning to meet its original purpose.
To allow any latent blonde to create a project and start a campaign to raise funds for life. Backend Kickstarter remains the same simple and convenient as before. From time to time in different hidden corners of the detected changes and improvements that arent even always required. For example, a strange Prototype gallery that appeared there not so long ago.
Individual should consider the situation when the money is automatically deducted from the account becherov and when the personal data of Becker fall to the authors of the projects. In the case of Kickstarter preserved a good tradition since the time of its collaboration with Amazon Payments (up to the transition to Stripe). Personal data Becker are classified information and he is not obliged to disclose them to anyone.
The withdrawal of pledge credit-Becker occurs only at the end of the campaign and only if the campaign is successful. Otherwise, the author of the project can not claim the money or the personal data of the one who dared to announce his intention to pay him a certain sum in case of success of the campaign. This is the true meaning of “pledge” — the pledge, the pledge, assurance, guarantee, promise to join the brotherhood, and the like.
In the case of Indiegogo pledge “flick of the wrist” turns into a real payment, often long before the end of crowdfunding campaign. To return even a single dollar, you will have to ask for it back and wait ten days. Undoubtedly, for the author of the project is much more convenient and safer than expecting payment at the end of the Kickstarter campaign, because in some cases the difference between plecami and actually received payments can be up to 10-15%.
However, returning to the theme of “its all yours”. To withdraw your money before the end of the successful crowdfunding campaigns in General is unethical, and often between the promised and actual is a huge gap. If traffic rules are written with the blood of victims, the rules of Kickstarter is written with the tears of disappointed and deceived Bekirov.
After the Manifesto Kickstarter Is Not a Store rules for submission of projects in most of the categories have tightened. As can be seen from the table, to launch the project on Kickstarter is not enough naked ideas. Especially if the project is a technological. The presence of a prototype and proof of his real existence is a prerequisite for obtaining permission to launch the campaign.
This decision takes the team Kickstarter based on the analysis of the materials presented in the presentation of the project on the Kickstarter page. So dont be surprised if after the project is sent for review in a few days you will receive a message that asks you to delete all renders and add photos of the actual device or even sketches of the early stages of the project to prove that your idea is truly original and is not an attempt to sell more expensive what is already commercially available on the market. However, it is not necessary to speak about complete totalitarianism on Kickstarter.
Many categories of projects (e.g., games and SOFTWARE) undergo a formal check in for three seconds and, in principle, no one on the team Kickstarter will not pay to them attention, if not complaints or criticism from becherov or authors of other projects. Unlike Kickstarter, the requirements for the project from the Indiegogo utterly minimal. Everything that is not prohibited by the rules is allowed. Moreover, on Indiegogo absent any was checking procedure of the project before the start.
This is the main reason that Indiegogo massively out fake or suspicious projects. I have the feeling that the administration Indiegogo does not see this as a big problem and even moderation is already running projects if exists then only at the request of dissatisfied or vigilant citizens. But we must pay tribute to the support Indiegogo.
In which case you can count on a fairly high level of attention to your needs and requirements. However, unclear requirements for the project and not test it before launch, I personally believe a significant disadvantage of the platform and prefer the approach of Kickstarter. Trust, but verify.
It is common knowledge that to prevent the problem clearly is better than trying to deal with its consequences. After the completion of any project often requires the author to continue the dialogue with the support of his backers. For example, to specify personal data Becker, or his order. What address to send the award to what equipment, what color and size t-shirt he prefers, and much more.
On Kickstarter for this there is an internal messenger that allows creators and backers to communicate “PM” directly. In addition, its comfortable, it allows Becker to remain anonymous, without revealing their personal data, which is a pledge that he will not become a victim of spam side involved in the project or worse. Its a sign of basic respect for personal freedom of a man who already helped you financially.
At the same time, the administration Indiegogo, apparently, does not consider this a big problem. Communication with the backers here takes place exclusively by email, which, I think, is a serious violation of personal freedom. Version of Kickstarter, everything has to end with the fulfillment of obligations to backers. As a consolation prize, Kickstarter offers to create a colorful screen saver on the top of the project and allows the author to place a link to an external resource (e.g. a project site, or online store where you can buy the result of the project, when it will be released to the market).
According to the version of Indiegogo, after receiving money from the project (and its authors) a new life begins, and the platform is quite logical wants to be involved in the fruits of success, (even if the campaign on another crowdfunding platform). Option InDemand allows absolutely any successful project to continue raising funds even after the campaign. Indiegogo is not limited to only its own clients.
To participate in the program can also InDemand projects, raised funds on Kickstarter. FlipFlic — one such case is the use of the program InDemand on Indiegogo a project that brought together first funds on Kickstarter. Both platforms have their own distribution to help projects to raise money. Kickstarter is to send a “Project We Love” (a special category of “Staff Pick”, “Project Of The Day”, etc.).
From the Indiegogo newsletter called “In The Know”. One “but”. Mailing Kickstarter “Project We Love” advertises the current outdoor campaign, and this is often quite modest projects, while Indiegogo newsletter “In The Know” is promoting projects that have already raised money and are being InDemand.
In addition, Indiegogo everywhere is promoting a Magic GoGoFactor. In actual fact it is the name of your own to determine just what the author of the project have to do with their forces in the hope that it will work. In fact, this is not a marketing tool, but only the usual set of platitudes for the beginner.
Here you can read the user manual about how to get to your favorite Kickstarter projects. And here is a similar manual for Indiegogo. Indiegogo has its own system of referral marketing, which the author of the project can offer the money and discounts on your product for assistance in disseminating information about the project. Kickstarter this system is and it is unlikely there ever will be.
The reason is simple. Discounts and money as a reward is prohibited in the rules of both platforms. However, Indiegogo, it seems, does not mind the fact that their tools are breaking their own rules of the game.
There is something clearly described in the official rules on Kickstarter and Indiegogo, but in practice is implemented on each of the platforms are diametrically opposed. We are talking about the so-called bust — a method of advancement of the project through a face-off significant sums of money by the sponsors themselves. Logic boost easy.
Active increase the amount of fees must convince potential Bekirov hurry to give their blood to allegedly successfully growing the project. Actually this is a common unethical tactic of “blowing bubble” akin to how once one famous singer intends redeemed its entire circulation records to ascend in the musical ranking and then sell even more records. Indiegogo rules is prohibited.
The Kickstarter rules is also prohibited. In practice, however, Indiegogo not only prohibits this unethical, but in private conversations their representatives are strongly advised to do this. I personally received such advice from representatives from Indiegogo in different technovista at least a dozen times. Interestingly, in a telephone conversation with customer support denied this fact.
Apparently, they still fear that someone taped the conversation and a scandal. As for Kickstarter. Even a small suspicion in bust could lead to a compulsory stop of the campaign, as well as block accounts, Bekirov suspected of complicity in this violation of the rules of the platform.
Alas, a few times I was a direct witness of such an outcome of unethical behavior of my clients, when, despite my warnings, the client continued arrogantly “Bastida”. Also I know personally of an incurable booster “success” which can be seen in this, this, this and this campaign. He is also involved in this scandal.
Coverage of the audience, the success rate fees: Kickstarter is clearly high. Indiegogo is much lower.
Transparency and consistency: Kickstarter, the maximum transparency, commitment to stated rules.
Indiegogo — double standards, unwritten practice of condoning violations. The level of popularity and trust among Bekirov and the press.
Kickstarter — high. Indiegogo — low.
Simplicity of launch and the level of project requirements. Kickstarter — more complex rules and high demands. Indiegogo — everything is easier, the level requirements below.
Assistance in promotion of the project.
Kickstarter — nothing really promise, but doing the little that is claimed. Indiegogo — a lot promised but little is actually implemented in practice. Kickstarter is “the Apple of crowdfunding”. If you have a fairly expensive, complex, intelligent, and even brilliant project, it makes sense to run his crowdfunding campaign on this platform.
Of course, the high requirements of the platform to the project and a somewhat more complicated procedure of registration and the start of the project may deter the inexperienced beginner. But all the work will pay off handsomely, especially if you believe in the success of your project will not be in vain rush to start, have a budget for marketing and are willing to work for success.
Indiegogo — a crowdfunding Huawei. Great place for a beginner who wants to play in crowdfunding with a small Amateur project with a modest goal in the range of $1.5-15 thousand, with a small pocket savings on marketing or even without any marketing budget. Low requirements to the project and to his authors to run your project from almost any country in the world. However, the flip side of the coin are equally low chances of success, a much smaller audience and suspicious attitude of the press in comparison with projects launched on Kickstarter.
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