Key Concepts:
- Indiegogo Funding Types: Keep What You Raise (Flexible Funding) and All or Nothing (Fixed Funding)
- Indiegogo Platform Fee: Percentage of funds raised charged by Indiegogo.
- Payment Processing Fee: Fee to cover credit card and transaction expenses.
- Indiegogo In Demand: Post-crowdfunding phase for extending sales.
- Marketing (Time-Based & Budget-Based): Strategies and expenses for promoting the campaign.
- Fulfillment & Shipping: Costs associated with delivering rewards to backers.
Indiegogo Funding Types and Associated Fees
- Keep What You Raise (Flexible Funding):
- Allows creators to keep the funds raised even if the goal isn't met.
- Fees are assessed regardless of whether the goal is reached.
- All or Nothing (Fixed Funding):
- Similar to Kickstarter; funds are only released if the goal is met or exceeded.
- No fees are charged if the goal isn't met; funds are returned to backers after about five business days.
- Platform Fee:
- 5% of the funds raised (at the time of recording).
- Payment Processing Fee:
- Varies based on location; in the United States, it's approximately 3% plus 20 cents per transaction.
- Creators should consult the Indiegogo website for specific rates based on their location.
Indiegogo In Demand Fees
- Originating from Indiegogo:
- 5% fee on transactions during the In Demand phase.
- Originating from Other Platforms (e.g., Kickstarter):
- 8% fee on transactions during the In Demand phase.
- Traffic from Indiegogo Channels:
- An additional 15% fee is charged on funds driven through Indiegogo's platform channels.
- This 15% is a total platform fee, not an additional fee on top of the 5% or 8%.
Additional Costs to Consider
- Campaign Video:
- While not mandatory, a video can significantly improve understanding and engagement.
- Costs vary depending on production quality.
- Campaign Page Design:
- Professional design can enhance the user experience (UX) and user interface (UI).
- Costs depend on whether the creator designs it themselves or hires a professional.
- Marketing:
- Can be time-based (e.g., building an audience on social media) or budget-based (e.g., paid advertising).
- The scale of the campaign (e.g., $10,000 vs. six or seven figures) will determine the marketing budget.
- Positioning, branding, and marketing are crucial for a product's success.
- Fulfillment and Shipping:
- Costs associated with delivering rewards to backers.
- Using a third-party logistics (3PL) provider may be necessary for campaigns with a large number of backers.
Salvador Brrigman's Resources and Advice
- The Kickstarter Launch Formula:
- Book with a dedicated chapter on Indiegogo, providing a blueprint for successful crowdfunding.
- Available for free on Audible or as a paperback on Amazon.
- Free Kickstarter Course:
- Covers tools, tricks, strategies, and tactics applicable to both Kickstarter and Indiegogo.
- Available at crowdcrux.com/kickstarter.
- One-on-One Coaching:
- Individual coaching calls are available for personalized guidance.
- Bookable at crowdcrux.com/coaching.
Notable Quotes
- "My name is Salvador Brrigman and I have been in the industry since 2012."
- "A great product is only really as good as its positioning its branding and it's marketing."
Conclusion
Understanding Indiegogo's fees and potential costs is crucial for a successful crowdfunding campaign. Creators should be aware of the different funding types, platform fees, payment processing fees, and In Demand fees. Additional costs such as video production, campaign page design, marketing, and fulfillment should also be considered. Salvador Brrigman offers resources like his book, free course, and one-on-one coaching to help creators navigate the crowdfunding landscape.
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