How do I choose a crowdfunding platform?

What should I take into consideration when choosing the right platform to use?

Question asked on 12/10/18 @ 2:24pm, edited on 01/05/19 @ 3:42pm

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There are two types of rewards and donation crowdfunding platforms:

1) Keep-it-all: you get to keep however much you raise, even if it doesn’t even come close to your financing goal. Examples of popular keep-it-all platforms platforms include: RocketHub, Fundable, CrowdRise.

2) All-or-nothing: you have to meet the goal you set at the beginning of the campaign — in which case you get all of the money raised — or go home with nothing. An example of an all-or-nothing platforms is: Kickstarter.

Some examples of platforms with both are: IndieGoGo, GoFundMe, Fundly.

There are a few other things to consider when you’re choosing which platform will work best for your project.

  • Do they support your type of project? Every platform has rules about what types of projects can raise funds with them. For example, Kickstarter is really clear about the fact that you can’t raise money for any kind of charity or cause, whereas GoFundMe is totally down with charities. So before you even get started, just make sure that the site will let you on in the first place.

Check out this infographic from our friends at Wrike for a breakdown of which types of businesses and organizations different platforms serve.

  • Look at what fees each platform charges. It’s usually a pretty low number, ranging from none at all to around 7% of the total raised, but some sites do take a hefty, hefty set fee. It’s worth it to know beforehand just to make sure you’re not slammed with a massive fee at the end of your campaign.

  • Make sure that the platform resonates with you. It’s a good idea to spend a little time exploring the site and seeing if you could picture your project there. Do you like the types of projects you’re seeing? Do you enjoy interacting with it? You’re going to be spending a lot of time on whatever platform you choose, so make sure it’s a place that you actually want to be hanging out.

Response posted on 12/10/18 @ 4:08pm
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