Even about a decade ago, if you’d said the word “crowdfunding” to someone, they’d probably look at you like you just swore them in Portuguese.
But today? Crowdfunding is much more mainstream – which means mentioning the term alone will provoke interesting debate, rather than confusion.
Indeed, crowdfunding is now a common way for businesses to raise some cash in order to launch a new product, fund a specific project or even just fund their growth.
The popularity of this method is only increasing. Experts estimate that the crowdfunding industry will grow to more than $300 billion by 2025.
If you’re no longer aboard the crowdfunding bandwagon, jumping on can seem a little intimidating. And the first place you need to start? Find the best platform for your own campaign.
There’s a lot of options out there, and that’s a great thing. But it also makes it difficult to get around for the best choice for you.
We’re here to help. Here are eight different crowdfunding sites worth examining.
1. Kickstarter
When you think about crowdfunding, Kickstarter is probably one of the first to come to mind. Founded in 2009, the platform is unique in that it rewards people for their contributions. Those who support a specific project get something – from a product to a unique experience – depending on their level of investment.
Who it suits: The vast majority of Kickstarter projects tend to be creative in character. It’s also worth noting, given Kickstarter’s unique approach, you need to have a specific project that people can contribute to that leads to final delivery. That means it’s not the site you want to turn to if you have a less tangible purpose, such as starting a business.
What it costs: Here’s another important warning with Kickstarter: If you don’t raise 100% of your target, you don’t get any of that cash. Your project needs to be funded 100% in order for you to collect that money. If you meet your goal? Kickstarter has a 5% commission and the payment processor will charge an additional 3-5 percent.
2. Igloo
Igloo turns every web search and online shopping into FREE donations for your cause.
According to their site, Igloo’s mission is to transform everyday web search and shopping into charitable action. Igloo is one of the simplest ways to raise money for your cause just by using the app, searching the web, and buying a product online.
Through Igloo, people and organizations have the tools they need to share their cause far and wide and harness the power of generosity by using the power of the web and the people.
You can discover the platform that gives you the freedom to create and manage your web presence to support your cause. Within minutes you can join an Igloo that supports your cause or create your own igloo for your community.
Who it suits: Generally speaking, it suits everyone. Igloo can be used either for crowdfunders, non-profits, community managers, and also individuals. There are a lot of options for everyone.
If you want to know more about Igloo platform, read it here.
2. GoFundMe
GoFundMe is another big name when it comes to crowdfunding. This tends to skew primarily toward individuals who are directed to raise funds for something in particular – whether it’s covering medical bills or paying for education.
Who it suits: GoFundMe presents the fact that it’s designed for “personal factors.” As a result, GoFundMe has a lot of people on the platform, making it great for business owners and entrepreneurs looking for money to open a new venture or even take their existing businesses to the next level.
What it costs: GoFundMe is another platform where you need to meet your recruitment goal to collect. For campaigns that started in U.S. dollars, there is no platform fee (that’s 5 percent for other countries), and payment processors will charge between 2-5 percent.
3. Indiegogo
Indiegogo is not as niche as the other platforms, meaning you’ll find a solid mix of fundraising platforms on the site. In addition, Indiegogo does not require you to meet your recruitment goal to collect. However, you’ll pay a higher fee if you don’t reach your destination.
Who it suits: Almost every branch is covered with the platform, making it suitable for almost everyone.
What it costs: Indiegogo offers fixed and flexible funding alike. Fixed funding is ideal if your campaign can only go on if it raises a certain amount of money (such as needing $10,000 to purchase equipment), while flexible is best if your campaign enjoys any kind of funding. The fee for one of them is 5%, but if you don’t reach your goal in a flexible financing campaign, you’ll pay a higher fee (which is reportedly 9%). From the payment processors.
4. Patreon
With a focus on creative projects, Patreon works with a subscription model. This means donors provide regular donations, rather than making one lump sum. Labeled “Creators, Let’s Pay,” the platform is designed to support creatives in pursuit of their passions and preparing things that others enjoy.
Who it suits: Because Patron prides itself on supporting creators (from podcasts for game creators to artists), this platform is best if you’re engaged in a creative venture.
What it costs: In the past, platform creatives will pay a 5% commission for the platform, as well as any other fees related to payment processing. But recently, Patron changed his approach in order to give his creators as much money as possible. Now, it’s the donors who pay a service charge of 2.9% + $0.35 for each personal commitment to cover payment processing.
