If you’re a large business looking to fund a project, you have many, many options available to you. If you’re a small business, until recently, your options were somewhat more limited. However, in the last few years, crowdfunding sites have exploded in popularity, giving small businesses a great new tool to fund their projects. Now, there are so many crowdfunding sites that it can be tough to choose the right site for your campaign. Today we’re taking a look at five of the most popular crowdfunding sites and their relative pros and cons in comparison to one another.
Fees: 4% if Project reaches Goal, 9% if it doesn’t. Also, a 3% credit card processing fee.
Indiegogo’s biggest virtue is that it will let you a broad range of projects, unlike many of its competitors. Also, you get all of your funds regardless of whether or not you reach your goal. On the downside, Indiegogo’s fees are higher than many other sites.
Fees: 5% fee, plus fees from Amazon Payments for processing.
Kickstarter is the gold-standard of crowdfunding sites. Many people have started using the phrase “kickstarted” to refer to all crowdfunding projects. Kickstarter specifically focuses on creative projects. It has the most visibility of any crowdfunding site. On the downside, to receive your funds on Kickstarter, you HAVE to reach your goal, a requirement that most other sites do not have.
Fees: 7.9% + $0.30 per donation
gofundme’s category parameters are even broader than Indiegogo’s. With gofundme, you can fund basically anything you want to, even if it’s something silly. You also don’t have to offer rewards for backers, which is required by both Indiegogo and Kickstarter. On the downside, gofundme’s fees are high, and your project may end up amongst non-serious projects like funding a high school party.
Fees: 4% commission fee if project reaches its goal. 8% if it doesn’t, plus 4% credit card handling fee
RocketHub allows users to post fundraising campaigns that integrate with social media platforms. While all of the sites listed here include social integration, Rockethub allows direct fan interaction and outreach. Of the services listed, RocketHub has the least visibility, and also features relatively high fees.
Overall, you need to choose a service based on your campaign goals. If you’re looking to buy new equipment for your office, Kickstarter might not be the best choice for your project. If you have a great idea for a creative project, that might be the perfect service for you. Pick a goal then pick the best platform for you.
Once you have a goal, and a service selected, check out our tips to use social media to bolster your campaign.