4 Best Alternatives to Kickstarter for Crowdfunding
Kickstarter is considered by many to be the king of crowdfunding. It is currently on its way to funding $6 billion in life goals. And when you consider that Kickstarter is barely 10 years old, that’s a pretty impressive achievement. After all, the money that backs Kickstarter’s various projects comes from people like you. Different entities can get involved, too, as long as they stay within Kickstarter’s strict guidelines. Which brings us to today’s topic. There are plenty of people who disagree with Kickstarter’s business model, rules, restrictions, and pricing and would rather take their crowdfunding needs elsewhere. If you find yourself in that camp or just want to see what else is out there, you’re going to want to stick around. Our resident Seek Capital crowdfunding fanatics have compiled the ultimate resource for Kickstarter alternatives. If you’re trying to get your big idea funded, we might have the perfect solution to your needs. If you’re still unhappy with the rates and guidelines of these alternatives, be sure to stick around till the end to find out what else you can do to bring your project to life.
Best Kickstarter Alternatives
FundRazr
Whereas Kickstarter works off an all-or-nothing business model, FundRazr lets you keep whatever money you raise under its Keep It All campaign option. There is an All or Nothing campaign option available, as well, if you prefer to go that route. As its name suggests, the Keep It All option works by letting you keep whatever money is raised. The idea is that you’ll be able to raise the rest of your funding needs elsewhere, thereby giving your supporters their money’s worth. If you aren’t confident that you’ll be able to raise the money needed to see your vision through, you’re better off sticking to the All or Nothing model. If you don’t meet your goal by the deadline, your supporters aren’t out any money, and you don’t get to keep anything. As such, you have an option to back out if funds aren’t met, thereby releasing you of any commitment to your supporters. Price-wise, FundRazr charges you a 5% platform fee, 2.9% payment processing fee, and $0.30 per transaction. This seems to be the going rate among much of the competition, although it can quickly add up depending on your campaign. There is a free version of FundRazr available that passes on the typical 5% platform fee to your supporters. Otherwise, you’ll want to sign up for the Standard plan, where you’ll be responsible for paying the 5% platform fee. The same 2.9% + $0.30 transaction processing fee from the Free version applies. A Pro version is also available, including the same fees from the Free and Standard plans. The difference here is that you can choose to have your supporters cover part of the 5% platform fee. Regardless of which plan you ultimately decide on, FundRazr has a commendable following and stands to get you the funding you need to be successful.
Patreon
Patreon is a relatively new crowdfunding platform that was founded in 2013. If you’re into creative endeavors, this may very well be your best bet at raising money for your projects. Patreon began its life as a solution for musicians who were having trouble sustaining their music careers. More specifically, it was created by YouTube music sensation Jack Conte. Although he amassed millions of views on the streaming platform, he found it challenging to make enough money to support his music career. So he started Patreon to see if he could get financial support from his followers. To say that the platform has been a hit would be an understatement. Patreon has been so successful since its inception that it has helped raise a staggering $2 billion in just eight years. If you’re a struggling artist who needs to raise money to jumpstart your career, Patreon is well worth your time. Pricing is a bit more complicated than other crowdfunding options, but don’t let that deter you from having a look. Like FundRazr, you’ll be charged a 5% platform fee. The difference here, though, is that the fee can increase all the way to 12%. The usual 2.9% + $0.30 per transaction fee is also here. However, you’re only charged this when you receive financial contributions over $3. Aside from the crowdfunding service, Patreon also provides its users with a wealth of resources for successfully running projects. Customer support is equally great, ensuring that you always have a helping hand to see your dreams to completion. Patreon also makes it incredibly easy to stay in touch with your supporters, and you can even download a mobile app that simplifies tracking your funds and progress.
Indiegogo
Indiegogo is an excellent Kickstarter alternative for a few reasons. First of all, it’s unique in that it gives you a whole suite of useful tools that you can benefit from. Whereas other crowdfunding platforms are strictly limited to helping you raise money (which is no small thing), Indiegogo goes above and beyond and offers to help you get your vision off the ground. Thanks to Indiegogo’s business model, you can get help to begin prototyping your product or service, which can prove to be extremely beneficial to creators. What’s more, Indiegogo will even help you with marketing your project. This is a big deal in itself, as Indiegogo will connect you with potential investors to take your vision to the next level. There’s also help available if you need assistance with product fulfillment and distribution. You’ll be hard-pressed to find these services elsewhere in a convenient all-in-one package like the one Indiegogo offers. At present, Indiegogo is responsible for helping raise more than $1 billion, placing it alongside powerhouse crowdfunding platforms like Kickstarter. Indiegogo follows suit and charges the same fees as many of its competitors (5% platform fee, 2.9% payment processing fee, and $0.30 per transaction). You have the option to keep whatever money you raise, as opposed to losing it all if you don’t meet your goal. One potential downside to Indiegogo, however, is that you must raise at least $500. That means you can’t crowdfund any projects that don’t need at least $500. The good news is that you can run your crowdfunding campaign for 60 days. If you meet your required funding goal, Indiegogo will get you paid within 15 business days. Bottom line; if you’d like help with marketing, prototyping, and distribution, Indiegogo is likely to be your best bet.
GoFundMe
When it comes to most money raised, no one can touch GoFundMe. Since being founded in 2010, this crowdfunding platform has raised more than $9 billion, putting it at the top of the money-raising food chain. What separates GoFundMe from the competition is that you don’t have to be a creator trying to start a business or create a product. While there are restrictions, you can ask for donations for just about anything (within reason). You can’t do that with any of the alternatives listed above. What’s more, GoFundMe doesn’t place deadlines on when you need to raise money. However, all is not perfect with this platform, as there are some things that might make potential donors think twice before supporting you. For one, your supporters will be asked to leave a tip to GoFundMe. This is for a good reason, though, as it allows GoFundMe to charge lower fees than most of the competition. Whereas other services charge the standard 2.9% + $0.30 fee, GoFundMe charges just 1.9% + $0.30. Even better, there isn’t a platform fee like you’ll find among other crowdfunding services, making GoFundMe a viable option for people needing a helping hand. So, what can you raise money for using GoFundMe? Some people have raised vet bills for their pets. Others have asked for donations to buy a new video game system. Money has been given to help pay funeral expenses, medical procedures, vacations, and much more. You don’t have to reach any set goals, either. Whatever money you raise, you get to keep for yourself (plus the fees to GoFundMe as outlined above). Whereas the other Kickstarter alternatives are better suited for creators and entrepreneurs, GoFundMe is available for everyone else.
Summary
You have several viable candidates to consider. But if you’re not happy with the thought of restrictions or other guidelines, you might be better off getting a personal loan or small business loan. At present, we have secured over $400 million in loans and will be happy to assist you. Give us a shout to discuss your options . You may find that we can get you a far better deal than what crowdfunding offers. In the meantime, we encourage you to check out our blogs . We’ve put together a ton of information to help you make the best financial decisions for your future. Sources https://fundrazr.com/pages/pricing-fees https://www.indiegogo.com/about/what-we-do https://www.gofundme.com/c/how-it-works