Kickstarter vs Indiegogo

Key Concepts

• Crowdfunding platforms: Kickstarter and Indiegogo
• Funding types: All or nothing (fixed) and Keep what you raise (flexible)
• Campaign duration and flexibility
• Approval process and project stage requirements
• Community differences and target audience
• Platform fees and associated costs
• Functionality and marketing tools
• Post-campaign marketplace and e-commerce integration

Kickstarter vs. Indiegogo: Demystifying Crowdfunding Platforms

1. Funding Types: All or Nothing vs. Keep What You Raise

• Kickstarter: Specializes in "all or nothing" funding. If the funding goal is not met (e.g., $10,000), the creators don't receive any of the pledged funds. Backers' credit cards are only charged upon successful campaign conclusion.
• Indiegogo: Offers both "fixed" (all or nothing) and "flexible" funding. With flexible funding, creators can keep the funds raised even if the goal isn't fully met (e.g., raising $8,000 of a $10,000 goal). Indiegogo is presented as a more flexible platform overall.

2. Campaign Duration and Flexibility

• Kickstarter: More rigid rules regarding campaign duration, typically 30-60 days, with limited options to extend the campaign once launched.
• Indiegogo: Offers greater flexibility, allowing campaign extensions for up to 60 days. For example, a 20-day campaign can be extended.

3. Approval Process and Project Stage

• Kickstarter: Strict approval process. Projects must fit within a major category, adhere to guidelines, and avoid prohibited rewards. Prototypes are generally required; ideas alone are not sufficient. The platform focuses on funding new inventions and creative projects, discouraging pre-selling elsewhere.

• Indiegogo: More lenient, accommodating a wider range of projects and project stages, including the "concept stage" for raising funds for ideas without a prototype. A "shipping now" stage is available for products already being shipped, mainly using the platform for marketing.

  • Example: A client's Kickstarter campaign faced scrutiny when backers believed the product was being sold elsewhere. Kickstarter required proof of patents and original prototyping to avoid shutting down the six-figure campaign.

4. Community and Target Audience

• Kickstarter: Attracts a cosmopolitan community interested in indie works like comic books, films, music, and novels. Strong in creative and design categories, with an emphasis on minimalism and storytelling.
• Indiegogo: Known for hardware and technology projects, with a growing presence in other categories. Kickstarter's marketplace ecosystem is estimated to be 2-3 times larger than Indiegogo's.

5. Platform Fees and Costs

• All or Nothing Funding (Both Platforms): Typically, a 5% platform fee plus credit card processing fees (variable based on location). Fees are only charged if the campaign is successful.
• Flexible Funding (Indiegogo): Fees are assessed even if the goal is not met.
• Indiegogo's Tipping System: Indiegogo prompts backers to add a tip to support the platform, which is not a fee but an additional cost to consider.
• Indiegogo in Demand: If transitioning from Kickstarter to Indiegogo in Demand, the platform fee is 8%. Funding driven by Indiegogo's marketplace incurs a 15% fee.

6. Functionality and Marketing Tools

• Similarities: Both platforms allow image uploads for rewards, text and images within the story, and pitch videos. Google Analytics and Meta Pixel can be installed on both platforms.
• Differences:
  • Project Presentation: Indiegogo highlights pricing and discounts on its homepage, while Kickstarter emphasizes funding meters.
  • Video Analytics: Kickstarter has a built-in video tool for tracking video completion rates and watch duration. Indiegogo relies on YouTube embedding, with analytics tracked on YouTube.
  • Referral Contests: Indiegogo's dashboard facilitates referral contests more easily, while Kickstarter integrates with tools like Kick Booster.
  • Post-Campaign Marketplace: Indiegogo features an "indie shop" for e-commerce, while Kickstarter has "Kickstarter late pledges."

7. Reward Tactics and Pre-Launch Mechanisms

• Similarities: Both platforms support customized reward images, limited early bird offers, and pre-launch mechanisms. Kickstarter uses "notify me when going live," and Indiegogo has a similar feature.
• Differences: Indiegogo offers "secret perks," volume discounts (discounts based on order quantity), and a "pay later" function. Kickstarter focuses on limited quantity and duration perks. Indiegogo promotes gifting perks around holidays.
• Indiegogo Trust Proven Program: Verifies creators who have a track record of successful delivery, enhancing backer trust.

8. Platform Staff Interaction

• Kickstarter: Historically more closed off, with less direct contact with staff. Improvement is noted, but it still lags behind Indiegogo.
• Indiegogo: More willing to work with creators, offer advice, and potentially barter deals. Provides a more personalized touch.

9. Recommendation

• Salvador Brigman's Perspective: Recommends utilizing both platforms strategically.
• Indiegogo: Suitable for concept-stage projects, creators seeking a more personalized experience, and those already shipping products (using the "shipping now" stage).
• Kickstarter: Ideal for established prototypes, brand building, and tapping into a larger market, particularly in categories like tabletop games.

10. Conclusion

Choosing between Kickstarter and Indiegogo depends on the project stage, category, target audience, and desired level of platform interaction. Kickstarter is better for larger markets and established projects, while Indiegogo offers flexibility, personalized support, and options for early-stage or already-shipping products. Strategically using both platforms can maximize reach and funding potential.