Indiegogo Vs. Kickstarter

Indiegogo Vs. KickstarterJust about everyone has a million-dollar idea come to them at some point during their life. What separates millionaires from the rest of us is that they took the initiative to bring their projects to life. Part of this process may include raising the funding required to get it off the ground.

Unfortunately, the folks with a lot of money are generally only offering it to people that don’t need it. Game producers hold all the keys, keeping projects by independent developers from lifting off the ground unless that developer is either well connected or very lucky.

Inventors have to deal with the costs of developing a prototype and bringing their invention to market. Often, the middle men required to make this happen take more than a fair share of their cut in the process. Why give someone a cut of your creation when you can handle everything on your own?

Enter Indiegogo and Kickstarter, two of the most popular crowd funding sites currently connecting project creators with the funding they need to make their dreams come true. In exchange for a generous reward, investors willingly give up their cold hard cash to see your dream become a reality.

The question facing project creators? Which service should you go with to get the funding you need?

What They Have in Common

Both Kickstarter and Indiegogo allow you to set various reward tiers that allow you to offer rewards for donations made at various levels. For example, a $5 donation might earn a contributor a mention on your website or a letter from the folks behind the project. A $50 contribution may get the contributor (called a backer on Kickstarter) a commemorative t-shirt or even a copy of whatever it is the project is helping come to life might be the offered reward.

Both of these sites offer an all-or-nothing project type. That means that if you don’t raise the funds you need to move forward, none of the pledges are collected and you receive nothing. The benefit of this is that you’re not placed on the hook for rewards you might not have the ability to produce when you’re short on funding.

Both sites host projects in a variety of areas from film to gadgets. While each has its own set of community guidelines, there is a good chance that whatever project you’re undertaking can find the funding it needs on either Indiegogo or Kickstarter.

How They Differ

Indiegogo offers users the ability to accept funding even when their goals are not met. This comes at a higher percentage (9% underfunded versus 4% for fully-funded projects) but it can help you avoid falling just a hair shy of your goal and losing any chance of funding as a result.

Kickstarter is currently the big man on campus as far as crowdsourced funding sites go. This doesn’t mean that it is better than Indiegogo, but it happens to be the brand people use to describe crowdsourced project funding. It’s almost like how making a copy of something is referred to as a Xerox. This may mean more brand recognition and inherent trust from the masses as they gravitate to your project page. That said, Indiegogo is known for its greater sense of community. A slightly more lax list of restrictions on projects helps, too.

If you had to choose between the two, the biggest difference for contributors is how you make your payments. Indiegogo accepts payments from virtually all major credit cards as well as PayPal. Kickstarter processes payments through Amazon so you have a similar range of payment options, though the project creator will incur a fee from Amazon once collection takes place.

The current fees for projects funded on Kickstarter is 5%. Indiegogo’s fees start at 4% and raise to 9% if you fail to reach your funding goal. That makes Indiegogo a better deal for folks with fully-funded projects and the only option for folks willing to self-fund to make up the difference should they miss their goal amount.

What do you think? Have you used either Kickstarter or Indiegogo in either a campaign creator or contributor capacity? Let us know about your experiences in the comment section below.

Article Written by

Ryan Matthew Pierson has worked as a broadcaster, writer, and producer for media outlets ranging from local radio stations to internationally syndicated programs. His experience includes every aspect of media production. He has over a decade of experience in terrestrial radio, Internet multimedia, and commercial video production.

  • http://www.facebook.com/steven.topich Steven Topich

    I use Indiegogo for projects I want to try to fund. I have not used Kickstarter yet, but know people who have and had it work for them, getting more than their goal.

  • http://www.admining.net/ Joshua Pitts

    Indiegogo seems to be more popular among artists like “Cody Weber”. I browse indiegogo from time to time to look for good things to fund. Haven’t ever visited or funded something on kickstarter..nothing against it but I only seem to fund people I have already been reading/watching and it’s usually through indiegogo.

  • http://www.facebook.com/jrdnv Jordan Vasquez

    To be honest this is the first time I even heard of Indiegogo. But speaking for Kickstarter, I find that a lot of great and worthwhile projects are being started there! And it seems to have only picked up a lot of steam as of late. ESPECIALLY with the OUYA that project rocked! Well for both of them, I can only see further adoption really! :)

  • Ryan White

    I tend to favor funding gadgets which until recent changes were predominantly on Kickstarter… I am still waiting for my Pebble watch.

  • Curtis Coburn

    I haven’t had too much experience with kickstarter. I have been watching Unbox Therapy on youtube, and he is doing a project with indiegogo to raise $5,000 for a PC build that he will be giving away. So far he has raise more than $6,000 for the PC.
    This is the first time I have heard about kickstarter. Though I really haven’t the need to start a project that needs to be funded, but now, if I do have an idea in mind. Maybe someday wanna build a PC and give it away like Lew (Unbox) I know some good ways to fun the project.

  • http://www.facebook.com/dan.czarnecki1 Dan Czarnecki

    I would have to say that Kickstarter is more known. I haven’t use Kickstarter personally, but I remember going to it one time or another after it being mentioned in a video.

  • http://twitter.com/uthmanbaksh Uthman Baksh

    Can I use these sites to fund my new book? I don’t wanna reveal too much about it here but overall, it’s about how one community turned the Neighborhood of Bed Stuy in Brooklyn from the most dangerous to one of the best neighborhoods in the city as well as connect that to the rising crime of today. Crap, I gave away too much. No one else wite that book or I’m suing!

    • Sunny

      sure, try it:)

  • http://twitter.com/Mr_Karmostaji Salman Karmostaji

    Cool

  • Richard Green

    I have an Internet buddy in Canada that had to use Indiegogo since Kickstarter didn’t support projects from outside the US (or at least at the time, I’m not sure of current level of international support for either site).

  • http://www.facebook.com/profile.php?id=100003595445085 Bram Derksen

    I prefer kickstarter

  • http://twitter.com/qwertysucks Zain Siddiqui

    Personally, I think Kickstarter is more known to people than Indiegogo. What I mean by that is whenever i hear the term “Kickstarter” used in a sentence, I know that someone is trying to raise money for a project of sorts. I didn’t have to research it to find out what that site does. On the other hand, I had to ask what was Indiegogo the first time I heard about it since the name doesn’t reveal too much information on the site.

  • scallawagon

    i had heard of kickstarter, but having lived in indianapolis, i initially thought that indiegogo was an internet service provider. true story.

  • Ria Mama

    I knew about kickstarter on TV and indieggo when the story of the abusing schoolbus grandma was on the news. Honesty I prefer indiegogo b’se they have many payment options. I have already funded couple of projects there but when I tried to do that on Kickstarter I was sent to open Amazon payment account. I don’t have that and none of the friends I know have Amazon payment. Many moms have paypal….and my paypal is disconnected from our bank accounts but I do sell craft stuffs online and all the money in my paypal account is for things like that ….Kickstater as you said is a big name but they are loosing many people…

  • anonymous

    You should also had that indiegogo is international where kickstarter is Us(and Uk now)-only

  • Brad Papworth

    Kickstarter takes 5% and then Amazon or the UK version take another 3-5%. To me thst’s closer to10% than IgieGoGo’s 4%. IndieGoGo has a 3% credit card fee plus $25 wire fee for non-US campaigns and a currency exchange fees may also apply. Not sure what the Paypal fee is.