Do you or somebody you know seek to fund your project on Kickstarter or other popular online crowdfunding platform? If so, there are some rules you should be aware of before you get started. Nothing is worse than sticker shock or being introduced to rules you weren’t aware of before working on your awesome project. Plus, you should also be aware of some Kickstarter alternatives after all, the biggest name isn’t always the best option.
Kickstarter (& Other Platforms) By the Numbers
Kickstarter has raised a total of 3 billion dollars, the only platform that succeeds it is GoFundMe with 5 billion dollars raised. Kickstarter charges users a 5% platform fee, and payment fees of 3% plus $.20 of each and every donation
This platform really only specializes in creative projects like card games, video games, or other art and literature forms. Occasionally you can find some cool toys or inventions, too.
There is also limited customer support and you must gain approval from Kickstarter to launch your campaign. And not only do you have to get their approval, you have to be the one to write up the product description and hope to the heavens you make it interesting enough for people to click on. Then you have to get some backers to make a pledge.
Some alternatives like Crowdfunding Bum can assist with such a tall order, as it is a lot of work for busy entrepreneurs to put it all together.
Explain Platform Fees, Please
Understanding the fees, you will be responsible for paying is critical to your success on Kickstarter, GoFundMe, Indiegogo or any crowdfunding alternatives.
A platform fee is something that most companies charge in order to cover costs that are associated with building and running their fundraising operation. The fees vary in their percentages, ranging anywhere from 0% to 20% (that’s pretty high), but most companies will not go above 5% when it comes to these fees.
Why are companies like Kickstarter given these fees? They have to cover the basic parts of website care, like running the servers and keeping their internet on. You would hate to have the site go down when everybody’s trying to put money together to help a friend or family member. They also have to pay customer service agents to help out organizers and their donors with any concerns or questions they have. Do keep in mind that many of the crowdfunding companies are for profit operations and of course compete with one another to take the most business.
Some companies like Crowdfunding Bum do not charge a platform fee, and you are likely curious how they work. Before we get too into that let’s make sure you know about Kickstarter Payment Processing fees.
Kickstarter Payment Processing Fees
Fundraising platforms like Kickstarter use a Payment Processor to move donations along and complete withdrawals. PayPal is a popular example. You might know of some others too, like Adyen or WePay. These fees cover the costs incurred with credit card processing, fraud, or other fees associated with payment related services. Most companies like Kickstarter charge 2.9% plus .30 per donation.
Okay, but How Do Free Platforms Work?
Companies like Crowdfunding Bum is free because they are currently on the scaling stage of their startup and want to incentivize campaigners to create campaign on their platform. GoFundMe do not charge a platform fee for completely other reason. This is very true, but they will still charge a payment processing fee. Instead of charging donors outright for a platform fee, they may ask them for a tip during the flow of donations. Donors will have to work around to opt out of the tip, which can get pricey as they are sometimes set as high as 15%.
Therefore, be smart about how you crowdfund and think of the money you can save using a platform that has a zero percent platform fee. With any platform, it will behoove you to read the fine print and ask any questions you might have.
Making Great Kickstarter Content
So, there are a few steps you should take when you’re putting together your Kickstarter project together to ensure that you get those backers with no trouble. Here are some suggested steps to follow to make it pop.
-Grab the Reader. Make your first line entice the reader. Give them reason to keep reading.
-Set the Stage. Let the people reading in on your background and why you’re doing this. Keep it brief.
-Bring Them Up to Speed. Bring the audience into the current minute. Explain how your situation makes you feel. Tell the readers why this is important to you.
-Have Hope. Nobody liked a downtrodden person, and Kickstarter campaigns are usually very positive. Focus on a great future and make the donors the star-they can help make your world a better place.
-Feelings Get into the emotions of your readers. Tell them the facts but write the story in such a way that tugs at the heart or makes it soar with possibility. The more you move them, the more they donate.
-Make sure you are creative with how you format and set up your page. Use the rich text options offered by most platforms to make your page appealing. Add video and photos to make it real.
Seem like a lot of work? It is. Thankfully, we did find that Crowdfunding Bum is here to the rescue. They will write your pitch for free, with their experts’ help, and definitely make it stand out. Busy entrepreneurs simply do not have the time to write all day.
How to Get Kickstarter Backers
Getting backers is a matter of hooking your readers’ interest.
On Facebook or other social media, you might say, “Want to Know What A Hero Looks Like? Click here” or “She beat the odds…Help her Beat Them Again!” You get the idea.
Next, you have to get your friends and family into the loop. Get them to share your campaign or donate. You can get more backers this way.
Afterward, you have to share your fundraiser on many different platforms so that way you can reach a wide audience. If you need some more help, Crowdfunding Bum includes built in backers, taking some of the worry away.
Our Bottom Line
Kickstarter is fine, but there are some good alternatives, too. Make sure you know about all of them so you can do what’s best for your cause.
Before you go running off to Kickstarter, 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.
Fresh out of excuses? Click the link below.
or see our frequently asked questions page
Bernardo Pereira instinctively knew that funding a Crowdfunding campaign shouldn’t be so difficult. This Crowdfunding Bum founder and sole owner is a visionary thinker who wanted to place the power of generosity in the hands of all those who choose to embrace it. Strategically, he developed the world’s first built-in backer mechanism within the platform to auto-fund campaigns. This website is a manifestation of his vision.