- Crowd Funding -
How it Works?
Since Crowd-funding is a new industry, all the processes are on the track. There are a few funding websites, such as Kickstarter, IndieGoGo, Pozible, Cinefile, 33 needs, Crowdrise and so on.
From the statistics from Complete.com, which is the world's top marketing analysis website, Kickstarter.com received almost 510,000 unique visitors from the US in March 2011, while its estimate for IndieGoGo.com in the same period was a bit above 111,000. These two are the most two popular crowd-funding platforms in the world. I will focus these to analyze.(Complete, 2011)
Kickstarter is a platform founded in 2009, which is for funding creative ideas and ambitious endeavours. It is funded by an all-or-nothing funding method where projects must be fully-funded or no money changes hands. Projects include films, music, albums, and consumer products. 10 IndieGoGo is an online social marketplace connecting filmmakers and fans to make independent film happen. 11 Anyone can create a campaign on these platforms, where you tell your story, set a funding goal, and offer perks to contributors. People can create the campaign, share it with your network(Twitter, Facebook, Linkedln and different other specialized blogs), engage fans, track information about contributors, and collect money. They all provide excellent customer service for creating campaigns and collecting money. They also promote campaigns through social media and press outreach, as well as on each crowd-funding website homepage, newsletters. (Kickstarter & IndieGoGo, 2011)
In the aspect of fund rising days, in Kickstarter, every project has a funding goal (a dollar amount) and a time limit (from 1 - 90 days) set by the project creator, but the time limit for funding in IndieGoGo is at most 120 days. To justify whether a project is successful, it depends on whether the project has achieved or surpassed its funding goal before deadline. (Kickstarter & IndieGoGo, 2011)
To talk about how to get funding, Kickstarter and IndieGoGo are distinct. If your Kickstarter campaign doesn’t reach its funding goal by the deadline you’ve set, you don’t collect any of the money pledged. IndieGoGo, however, doesn’t have this restriction, so you will collect money even if you don’t make your goal. (Kickstarter & IndieGoGo, 2011)
In terms of contribution funding, different crowd-funding platforms have their own methods. Kickstarter uses Amazon Payments. IndiGoGo allows PayPal and credit card and check, and they will be deposited directly into your campaign's PayPal account and are available immediately. (Kickstarter & IndieGoGo, 2011)
In terms of service fees, all crowd-funding platforms will just apply for the successfully funded projects. Kickstarter will apply a 5% fee to the funds raised. Indiegogo, There is a 4% fee on the money you raise when you meet your funding goal. (Kickstarter & IndieGoGo, 2011)
Furthermore, the rewards are also necessary. It depends on the project promoter what they want to give to the donators.
From the statistics from Complete.com, which is the world's top marketing analysis website, Kickstarter.com received almost 510,000 unique visitors from the US in March 2011, while its estimate for IndieGoGo.com in the same period was a bit above 111,000. These two are the most two popular crowd-funding platforms in the world. I will focus these to analyze.(Complete, 2011)
Kickstarter is a platform founded in 2009, which is for funding creative ideas and ambitious endeavours. It is funded by an all-or-nothing funding method where projects must be fully-funded or no money changes hands. Projects include films, music, albums, and consumer products. 10 IndieGoGo is an online social marketplace connecting filmmakers and fans to make independent film happen. 11 Anyone can create a campaign on these platforms, where you tell your story, set a funding goal, and offer perks to contributors. People can create the campaign, share it with your network(Twitter, Facebook, Linkedln and different other specialized blogs), engage fans, track information about contributors, and collect money. They all provide excellent customer service for creating campaigns and collecting money. They also promote campaigns through social media and press outreach, as well as on each crowd-funding website homepage, newsletters. (Kickstarter & IndieGoGo, 2011)
In the aspect of fund rising days, in Kickstarter, every project has a funding goal (a dollar amount) and a time limit (from 1 - 90 days) set by the project creator, but the time limit for funding in IndieGoGo is at most 120 days. To justify whether a project is successful, it depends on whether the project has achieved or surpassed its funding goal before deadline. (Kickstarter & IndieGoGo, 2011)
To talk about how to get funding, Kickstarter and IndieGoGo are distinct. If your Kickstarter campaign doesn’t reach its funding goal by the deadline you’ve set, you don’t collect any of the money pledged. IndieGoGo, however, doesn’t have this restriction, so you will collect money even if you don’t make your goal. (Kickstarter & IndieGoGo, 2011)
In terms of contribution funding, different crowd-funding platforms have their own methods. Kickstarter uses Amazon Payments. IndiGoGo allows PayPal and credit card and check, and they will be deposited directly into your campaign's PayPal account and are available immediately. (Kickstarter & IndieGoGo, 2011)
In terms of service fees, all crowd-funding platforms will just apply for the successfully funded projects. Kickstarter will apply a 5% fee to the funds raised. Indiegogo, There is a 4% fee on the money you raise when you meet your funding goal. (Kickstarter & IndieGoGo, 2011)
Furthermore, the rewards are also necessary. It depends on the project promoter what they want to give to the donators.