We at Crowdfunding Bum thought you might enjoy reading about the managerial decision process involved in choosing a crowdfunding sites. The project creator in this scenario is contemplating on which of the many crowdfunding sites to use to fund their project. We hope it inspires you to weigh your own options since you have more choices than ever to consider. Hopefully, Crowdfunding Bum will be on your top ten list.

Crowdfunding Sites, Kickstarter or IndieGoGo?

Hello! Today we are going to talk about crowdfunding. We have very little experience in this area, nevertheless we can tell you with confidence the differences between Kickstarter and the IndieGoGo crowdfunding sites and why we chose Indiegogo to be our platform of choice to raise funds for the Atlasfera project. If you don’t have money for development there are really only two ways to get it.

The first option is to find an investor – someone with money who will believe in your project and will sponsor you in exchange for future shares in your company. I personally didn’t want to do this because I have a very specific vision for Atlasfera. I don’t want to change it. When someone is investing in your project you inevitably become dependent on them and end up changing your plans because of investor meddling.

The second option is crowdfunding which is basically publishing your idea and convincing people to support you. When I first realized that we needed to organize a crowdfunding campaign the only platform I knew was Kickstarter. I was planning to create a campaign at Kickstarter. I soon learned that only residents of the United States, Canada and certain European Union countries can start a project on Kickstarter.

Since I’m a Russian Federation resident, I needed to find some way around this dilemma. I found out that there is actually a bunch of options. For example, you can find a middle person in one of the countries approved by Kickstarter. For 5 or 10% commission of your project goal the middle person will set everything up for you. By everything, I mean legal, bank accounts and the connections between them and your Kickstarter campaign.

Traditionally, the relationship with the middle person can look like as if you were their subcontractor so technically it is the middle person who raises funds and they are obliged by contract to give that money to you. Likewise, you can also turn to relatives and friends, if you happen to have any in the mentioned countries.

Another possibility is to go to one of the approved countries and register a legal entity there. These procedures take anywhere from three to six weeks with no guarantees that Kickstarter will approve your project.

Crowdfunding Sites, the choice.

Crowdfunding sites

When we began this process, we didn’t have neither the time nor the money to do all that. Lucky we discovered Indiegogo. A crowdfunding platform where anyone can create a campaign no matter where they live. I liked the openness and the fact that it was actually global unlike Kickstarter.

Speaking about ease of use – with a Kickstarter project you need to upload your video to Kickstarter. Not with IndieGoGo, you just have to provide a YouTube link. Also significant is that Kickstarter uses primarily the American payment system of Amazon while IndieGoGo uses the International recognized PayPal payment gateway.

Kickstarter is functioning on the all or nothing funding model, which means if you place $100 as your goal, and raise $99 you don’t get anything. On IndieGoGo you can choose to have your project on an all or nothing model or the flexible funding model, which allows you to take the money even if you don’t reach your goal.

The hidden issues here is that some people are more generous when they see an all or nothing campaign. Because they know that if the campaign fails they don’t have to honor their pledge. If you choose flexible basis and don’t reach your goal you’ll pay 9% commission to IndieGoGo instead of the 35 percent standard commission. You can learn more about those numbers on the IndieGoGo website. They have a wonderful table that explains it all.

To sum up we decided on IndieGoGo for the following reasons. IndieGoGo is international. One can start an IndieGoGo campaign from anywhere in the world. Indiegogo allows flexible funding. IndieGoGo uses YouTube videos and PayPal. The Indiegogo platform solved most of our crowdfunding needs. So to update our progress, everything is going as planned. I hope you found our experience useful in your own planning.

Crowdfunding Sites, Crowdfunding Bum?

Before you go running off to Indiegogo, we hope you stick around a while to find out more about all that Crowdfunding Bum has to offer. You will find ample reasons to choose us as your funding source.

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