Indiegogo is an online crowdfunding platform that lets users raise funds for projects, products and causes. Contributors contribute to campaign owners in return for perks that are decided by the campaign owner.
Indiegogo is an open marketplace where anyone can create and launch a campaign. It allows for a flexible funding model where campaign owners can withdraw the funding amount even if they do not meet their funding goals.
Indiegogo charges a five percent (5%) platform fee from all funds campaign. Fees are calculated and deducted from the goals you set. For complete information on fees & pricing, check this page here.
Indiegogo perks are rewards that campaign owners give to contributors against a pledge amount.
Indiegogo does not have a project verification process in place. Because it is an open marketplace, anyone can sign up and use the platform’s Campaign Editor to create and launch their project.
Indiegogo allows for both a fixed and flexible funding model. In the fixed model, if your campaign does not meet its goal by its deadline, all your backers will be refunded. In the flexible model, even if you fail to meet funding goals, you can still receive your money.
It usually takes 15 business days after the deadline to receive all your money.
Indiegogo automatically sets the maximum campaign duration of 60 days. Indiegogo holds the right to offer an extension at their sole discretion. Users are allowed to ask for one extension during the campaign provided the campaign is set to run for less than 60 days.
Crowdfunding money raised is generally considered as income. However, it is advisable to talk to your tax consultant to identify the tax bracket you need to pay over a certain funding amount. Some crowdfunding funds can also be shown as non-taxable gifts.
You can always relaunch a new campaign. Depending on the pricing model you choose, you would either receive the funding amount even though the campaign failed or nothing at all. Do note that the flexible funding model will mean that you have to deliver what you promised customers, or you could be considered as spam.
Yes, Indiegogo is safe for campaign owners, however, campaign backers may be a tad bit hesitant to fund a project on Indiegogo because of its open marketplace platform. It is on the campaign creators to prove their legitimacy and win the trust of their contributors.
Yes, you can start a project without a prototype, but that won’t be useful to you if customers don’t believe in the legitimacy of your product. The prototype is one of the most important features of your project that will help win the trust of contributors.
Campaigns that have met fundraising goals can continue to raise funds even after their campaign ends. Indiegogo has a special service called In-Demand that allows campaigns even from Kickstarter and other platforms to continue funding in Indiegogo. The only condition? Your campaign must have met its goal by the deadline.
Visit Indiegogo’s Support Center here to know more.