One of the challenges that could be really daunting in the landscape of creative entrepreneurship is that of securing financial resources for innovative projects. Whether you are an artist, designer, filmmaker, or inventor, realizing your vision often requires investment that could be very challenging to find in orthodox ways. Enter crowdfunding, a groundbreaking way that has revolutionized the way of accessing capital, effectively democratizing the space and making it possible for the creative mind to fund their project directly from the support of everyday backers.
With the rise of countless crowdfunding services, one should very specifically assess which one to employ in order to fund a creative project. In this blog, we will try to find out the most important factors one should consider while choosing a proper crowdfunding platform for one’s project.
Understanding the Crowdfunding Landscape
What began as merely an alternative funding vehicle to traditional means—loans, grants, and investors—has grown into a multibillion-dollar industry. Kickstarter, Indiegogo, and GoFundMe clearly are the more popular platforms, each with different strengths and areas of focus. Some specialize in creative projects, while others remain fairly general and open to a broad range of industries.
First and foremost, in choosing the ideal platform for your project, you must understand what makes each one different. Major differences in funding models, audience demographics, platform fees, and promotional tools may change everything for your campaign. Let’s dive into the core considerations when it comes to evaluating crowdfunding platforms.
Aligning Your Project with the Coolest Crowdfunding Platform
Choosing the right platform makes all the difference. Each one has its strengths and sweet spots. Once you match your project’s goals and audience with the strengths of the platform you’ll be using, you can likely achieve your funding goal. Here’s how to tell which one is most appropriate for your creative venture:
- Emphasis of the Platform and Audience: One of the first considerations is the kinds of projects each platform generally lends itself towards. Some, like Kickstarter, are strongly oriented towards creative projects—particularly in art, design, film, and music. Their user base reflects that: it’s mostly backers looking for cool new ideas and artistic endeavors. If your project fits into one of these categories, then Kickstarter’s established community can give you a running start. For more insights, you can check out a detailed Kickstarter overview. Indiegogo is more flexible: it goes from tech gadgets to social causes, so it really is a big gamble of several projects. If your project doesn’t fit cleanly into a niche that is considered “creative” in the traditional sense, then you might find better use with the broader focus of Indiegogo.
- Funding Models and Flexibility:Different funding models come with each of the platforms, and they largely affect your strategy for campaign planning. The all-or-nothing model of Kickstarter is great if you’re looking to drive some urgency and really be able to back hitting a target, where funds are only received on the condition that your goal will be met. This might be motivation for both you and your backers, but there is the possibility of walking away with nothing in case a miss actually occurs. In contrast, Indiegogo gives you the flexible model of funding: you retain the raised money even if you do not reach your goal. This really gives more possibilities, especially if you want to go ahead without full funding and/or relax more.
- Community Engagement: Where your community falls within an engagement matrix can be a factor of visibility for your campaign. Kickstarter has a huge number of backers who are pretty well known for searching out new and innovative projects, and then there’s Indiegogo, a bit broader in appeal and with a wider array of entry points to various interests. It basically depends on choosing the right platform for where your target audience is most active and engaged.
- The decision on which crowdfunding platform to use will rest on making a best match between special needs identified with some alternative strengths and opportunities provided by each platform. That way, you get to better position your campaign for success.
Assessing Platform Fees and Funding Models
Every crowdfunding site charges fees, which, though, can differ greatly depending on the respective platform and funding model in use. Most of them take a percentage of the total funds raised, along with payment processing fees. Factor these in as you set your funding goal, so that you have enough money left over to complete your project after the platform has taken its cut.
For example, Kickstarter takes 5% of funds raised, in addition to payment processing fees that are roughly around 3-5%. Indiegogo’s are comparable, but the only added benefit is flexibility in choosing between fixed or flexible funding options. GoFundMe, known for personal and charity fundraising, doesn’t charge a platform fee for most campaigns, though payment processing fees would still apply.
Another way in which your decision can be influenced is through the funding model. If you are pretty sure you will hit your funding goal, then Kickstarter’s all-or-nothing model is going to help you create urgency and drive contributions. On the other hand, if flexibility is what your project calls for, then Indiegogo might be a better choice since it allows for funds raised, even if they don’t raise their full target. This all depends on the models’ trade-offs and choosing one that best suits your needs and financial strategy for your project.
Exploring Marketing and Promotion Tools
Promotion is probably among the most important keys to success for crowdfunding. Indeed, crowdfunding sites are designed with many marketing and promotional tools to help spread the word out there. Some of them have built-in analytics, email marketing options, and social sharing, which empowers maximum campaign exposure.
For example, Kickstarter has something called “Projects We Love,” a category which puts a few campaigns in the spotlight to give them additional exposure to backers. Indiegogo does much the same promotional boost through its InDemand feature, which campaigns use to raise funds past an initial deadline.
While vetting platforms, consider how they can help raise your voice. Engaged community of people who are backers—does it have? Are there features or tools to help you engage with those potential supporters? In a case like this, the platform with the strong promotional features is able to make all the difference in your campaign, especially if you’re new to crowdfunding.
Evaluating the Platform’s Reputation and Track Record
It might further make a difference to your campaign by the reputation of the platform you go with. If a platform has had a really excellent record for funding projects successfully, more serious backers are likely to be attracted. Also, on the platforms that have built a well-established reputation, it gives a level of trust and credibility needed to make a potential backer feel safe in supporting your project.
Research the success rates of similar campaigns on different platforms. For example, Kickstarter is very effective at funding creative projects but not as successful funding other types of projects. Knowing what types of projects do well on the different platforms will give you an idea if your venture will resonate with that platform’s user base.
Conclusion
Finding the right crowdfunding platform may prove to be just what you need to bring your creative venture to life. If you look carefully at things like funding models, platform fees, audience alignment, and promotional tools, then you really can set yourself up for success. The future of creative entrepreneurship is already bright, and with the right platform, you can turn your ideas into life while engaging a global community of backers who share your passion. As you begin crowdfunding, just remember: the key to riding the constantly changing creative funding landscape is deep research backed by strategic planning.