Indiegogo Vs. Kickstarter: Which Crowdfunding Platform is Right for You

Are you an entrepreneur with a groundbreaking product idea? Are you unsure whether to choose Indiegogo or Kickstarter? Learn how to choose the best platform for your crowdfunding campaign and maximize your business success.

Whether you are launching a new product, expanding your business, or bringing an innovative idea to life, platforms like Indiegogo and Kickstarter offer powerful tools to connect with supporters and get funding. But with both platforms offering unique benefits, how do you decide which one is right for your business?

What is Indiegogo?

Indiegogo is one of the leading crowdfunding platforms, known for its flexibility and diverse projects. Indiegogo offers a variety of funding models, including flexible funding, fixed funding, and rewards-based crowdfunding. This flexibility makes it a popular choice for a variety of projects. The fixed funding model (funding only if the goal is reached) is similar to Kickstarter, while the flexible funding model allows projects to keep the funds raised even if the goal is not reached. Founded in 2008, Indiegogo allows entrepreneurs, artists, and inventors to raise funds for their projects through donations from backers around the world.

Indiegogo is particularly popular among tech startups, innovative product creators, and social causes. The flexibility makes Indiegogo an attractive option for projects that need to receive funding regardless of whether the initial goal is reached.

In addition to crowdfunding, Indiegogo also offers an InDemand feature that allows campaigners to continue to raise funds and sell products after the initial campaign ends. This is particularly useful for businesses that want to maintain momentum and continue to engage with their audience.

What is Kickstarter?

Kickstarter is another big player in the crowdfunding space, known for its focus on creative projects. Kickstarter uses an "all or nothing" model, meaning that if a project fails to reach a predetermined fundraising goal, the funds will be fully returned to the backers, meaning that a project must reach its funding goal to receive any funds. This model encourages active participation from backers. Since its founding in 2009, Kickstarter has helped bring thousands of ideas to life, from innovative gadgets and games to music albums and movies.

Unlike Indiegogo, Kickstarter uses an all-or-nothing funding model, meaning that funds are raised only if the campaign reaches its funding goal. This approach creates a sense of urgency and motivation in backers, as they understand that the project will not move forward until the goal is reached.

Kickstarter also emphasizes community and transparency. Campaign creators are required to provide detailed updates and engage with backers throughout the campaign, which can foster a strong connection between creators and backers. The platform is often favored by creators who want to build a passionate community around their project and are confident in their ability to reach their funding goals.

How long do Kickstarter and Indiegogo campaigns last?

The duration of a crowdfunding campaign is a key factor in its success. Both Indiegogo and Kickstarter have guidelines and best practices regarding campaign length.

Kickstarter crowdfunding campaigns typically last between 30 and 60 days, with 30 days being the most common. The platform encourages shorter campaigns because it creates a sense of urgency while keeping the project fresh and interesting and keeping backers engaged. Campaigns that last longer can lose momentum and may have trouble maintaining the interest of potential backers.

On the other hand, Indiegogo offers greater flexibility in campaign duration. While the standard campaign duration is also about 30 to 60 days, Indiegogo allows campaigners to extend the campaign duration up to 120 days in some cases. This extended timeline is beneficial for projects that need more time to build awareness or projects that want to take a more measured approach to fundraising.

It is worth noting that both platforms require careful planning and a well-thought-out strategy to maintain momentum and engagement throughout the campaign, regardless of the length of the campaign.

What are the benefits of crowdfunding for businesses?

Fundraising

First of all, the most direct benefit of crowdfunding is to raise the funds needed for the business. For start-ups or projects with tight funds, raising funds from the general public through crowdfunding platforms can effectively alleviate financial pressure and promote projects from concept to reality.

Market validation

Crowdfunding provides an opportunity to test your product or idea in the market before full production. A successful crowdfunding campaign shows that there is strong market interest, thereby reducing the risk of new product launches.

Through crowdfunding, companies can test the market's acceptance of products or services, understand the needs and preferences of potential users, and make more informed decisions.

Early customer base

Crowdfunding supporters often become your first customers and brand advocates. They can provide valuable feedback to help improve your products and promote your business.

Brand awareness

Crowdfunding is not only a process of raising funds, but also a great opportunity for market promotion. A successful crowdfunding campaign can significantly increase brand awareness. As the crowdfunding campaign progresses, it can attract media attention and create a sensation, leading to more sales and partnerships.

Showing projects and products on crowdfunding platforms can attract the attention of a large number of potential users, increase brand awareness and exposure. At the same time, user feedback during the crowdfunding process is also an important reference for companies to understand market demand and optimize products.

Financing without equity

Unlike traditional investment methods, crowdfunding allows you to raise funds without giving up equity in your company. This means that you can have full control over your business while still getting the funds you need.

Community Building

Crowdfunding platforms like Kickstarter and Indiegogo are community-driven, meaning they are built on the idea that creators and backers work together to bring a project to life. Through channels like social media and forums, project owners can gather user opinions, answer questions, and build close connections with users.

This can form a loyal customer base and provide ongoing support for future efforts. This interaction not only helps improve the user experience, but also promotes the formation of a community, laying a solid foundation for the long-term development of the project.

Feedback Loop

Crowdfunding provides a direct communication channel for creators and backers. This feedback loop can provide key insights to help improve your product, messaging, or overall business strategy.

Crowdfunding is a powerful tool for businesses, not only as a source of funding, but also as a way to build a loyal customer base, validate products, and grow your brand. Whether you choose Indiegogo or Kickstarter, planning and execution are key. Take the time to develop a compelling campaign, engage with your audience, and keep them informed throughout the process.

Indiegogo vs. Kickstarter: Which One Should You Choose?

Choosing between Indiegogo and Kickstarter ultimately comes down to the needs of your project, your funding goals, and your target audience. Here’s a quick comparison to help you decide:

Funding Model: If you need flexible funding options and want to keep your money even if you don’t reach your goal, then Indiegogo is the better choice. If you prefer an all-or-nothing approach to create a sense of urgency and ensure you have enough money to deliver, then Kickstarter may be your best choice.

Project Type: Kickstarter is great for creative projects, such as film, music, games, and art. Indiegogo is more flexible and can accommodate a wider range of projects, including technology, product innovation, and social causes.

Campaign Length: Indiegogo offers more flexibility in campaign length, which is helpful if you anticipate it will take more time to reach your goal. Kickstarter encourages shorter campaigns to maintain momentum and a sense of urgency.

Post-campaign Opportunities: Indiegogo’s InDemand feature lets you continue to raise funds and sell products after your campaign ends, providing a longer revenue stream. Kickstarter does not offer a similar feature, so once your campaign ends, your fundraising on the platform ends as well.

Platform audience: Kickstarter is community-focused and has a large number of backers who are keen to support creative and innovative projects. Indiegogo also has a strong community, but its broader focus attracts a more diverse audience, including people interested in technology and social innovation.

In the world of crowdfunding, Indiegogo and Kickstarter are undoubtedly the two most resounding names. For businesses and e-commerce sellers, choosing which platform often means the difference between success and challenges. Indiegogo and Kickstarter each have unique advantages, and your decision should be in line with your business goals, funding needs, and project type. By understanding the advantages of each platform and how they meet the needs of different types of projects, you can make an informed decision and maximize your chances of success.

No matter which platform you choose, ChinaDivision will be your strong backing in your crowdfunding journey, providing you with professional and efficient logistics services to ensure that your project can proceed smoothly and achieve your business goals. Contact us now and let us start a successful crowdfunding journey together.

Frequently Asked Questions about Crowdfunding Platforms

Can I extend my Kickstarter campaign if I need more time?

No, Kickstarter campaigns are fixed in duration and cannot be extended. However, Indiegogo offers more flexibility in campaign length and can be extended if needed.

What happens if I don't reach my funding goal on Indiegogo?

If you choose the flexible funding option, you get to keep the money you raised even if you don't reach your goal. If you choose fixed funding, the funds will be returned to backers.

Can I continue to raise funds after my campaign ends?

On Indiegogo, you can use the InDemand feature to continue raising funds and selling products after your campaign ends. Kickstarter does not offer this feature.

How important is community involvement in a crowdfunding campaign?

Community involvement is crucial. Regular updates, answering backers' questions, and keeping them involved in your journey can increase your chances of success and build a loyal customer base.

How can ChinaDivision help my crowdfunding campaign?

ChinaDivision provides one-stop services from order management to final delivery, helping customers save costs, improve efficiency, and ensure that products can be delivered safely and on time to supporters around the world.