13 Oct How Does Indiegogo Work?
Indiegogo is a crowdfunding platform like Kickstarter that lets founders, entrepreneurs, creative artists and businesses to raise money for their products/services/creative ventures. Although it functions the same way as Kickstarter, Indiegogo is a more open, more flexible platform than Kickstarter.
So how does Indiegogo work?
Let’s dive in.
Getting Started on Indiegogo
Indiegogo is quite simple to get started on. Unlike Kickstarter, you don’t have to submit applications or wait for a review of your project.
You can just simply start a campaign by visiting the website and signing up for your Indiegogo platform.
Being an open platform, Indiegogo does not limit its intake of projects; moreover, if you’re a non-profit, you can benefit from the platform’s Go Fund Me feature that caters specifically to non-profit funding.
Once you sign up, you can begin inserting details of your campaign, which will remain as a draft until you publish it.
Choose Your Funding Type
Indiegogo has two main funding options – fixed and flexible. For both options, you are not required to achieve your main funding goal in order to withdraw money.
Indiegogo does not have an ‘All or Nothing,’ policy like Kickstarter, so you don’t have to worry about losing your money even if you have not reached your goal.
If you choose the fixed funding option, you can easily withdraw your money after your campaign ends regardless of whether you’ve achieved the goal.
In the Flexible option, you can withdraw money as you go. It is the most popular form of funding on Indiegogo as it’s easy for project creators to use the money they need to continue their work.
Regardless of fixed or flexible, the minimal funding goal on Indiegogo is 500 (USD/CAD/GBR/EUR/AUD)
For most project creators, waiting for months to receive the cash is counter-productive. It beats the purpose of crowdfunding if you have to wait for money when you’re in need of it.
Preparing Your Campaign
Although Indiegogo is an easy platform to start your campaign, it comes with its set of challenges.
For one, the lack of an internal review means anyone can submit projects and this leads to trust and credibility issues. Some backers are aware of this and so they may be reluctant to crowdfund a project that does not have all the right elements ticked off.
So be sure that you prepare your campaign well and include all the necessary elements that make for a great crowdfunding campaign.
Some things to prepare are:
> An amazing video narrating your story or journey
> If you’re funding a product, then 3D renders of the product and preferably a prototype too to show the functionality and features
> Transparent milestones and timeline for your project. Backers LOVE those who adhere to deadlines and show results on said deadlines
> Perks for your backers. Crowdfunding is a rewards-based system which means you need to give your audience some perks or rewards for backing your project. This could be a limited edition of your products, gift packs or anything of value as a token of appreciation for people backing your project
> Your first 100 backers. For any campaign to be successful, you need to have at least 100 backers to fund your project on the platform. So bring in your friends, family, and friends of friends if you want to create some noise for your campaign!
Assess the Cost of Running a Campaign on Indiegogo
Indiegogo has a 5% platform fee and a 3 – 5% payment transaction fee that varies according to different regions of the world.
Transfer fees, or Bank Delivery Fees, are also applied each time Indiegogo sends funds to your bank account.
Apart from the platform fee, you also have to take into account other costs such as marketing, PR, photography, videography and lots more.
With every withdrawal that you make you’ll be charged the platform fee, bank fee as well as the transaction fee so make sure you keep all this in mind before you withdraw the money.
For a crowdfunding campaign to be successful on Indiegogo, it is imperative that the campaign has transparent details, has quality backers, has great PR and marketing & has a goal that is achievable.
Want to know if your project can be successful with crowdfunding? Drop us a note below and we’ll get back to you with the necessary information to kickstart your crowdfunding project!