Kickstarter vs Indiegogo: Key Differences

1. Platform Focus and Target Audience

• Kickstarter focuses predominantly on creative projects such as technology, design, and art. The platform’s emphasis is on fully funded projects—you must meet your funding goal to receive any funds. Backers can only pledge money if the project succeeds in reaching its target amount.
• Indiegogo, on the other hand, offers more flexibility. It supports a broad range of projects, from tech innovationsto charitable campaigns. Indiegogo gives creators the choice between two types of funding models:
  • Fixed Goal: Similar to Kickstarter, funds are only disbursed if the funding goal is reached.
  • Flexible Goal: This allows creators to receive funds even if their campaign doesn’t meet the target amount, providing a more accessible option for project creators.

2. Funding Models and Success Metrics

• On Kickstarter, projects must meet their funding goal for the funds to be released. If you fall short, no money is collected.
• Indiegogo's flexible goal system enables creators to continue receiving funds as long as there's financial backing. This option can be particularly beneficial for creators looking for partial funding or ongoing funding after a project is launched.

3. Platform Fees and Cost Structure

• Both platforms charge fees, but the structures vary:
  • Kickstarter charges a 5% fee on all successful projects.
  • Indiegogo also takes a 5% fee, but it offers additional options like the flexible goal model which could be appealing to a broader range of projects.

4. Global Reach and Market Penetration

• Kickstarter is most popular in North America and Europe, with a growing following in Asia and other global markets. The platform’s focus is mainly on large-scale, high-profile projects.
• Indiegogo has a more global presence and actively engages with entrepreneurs in emerging markets, offering more flexibility for international projects and backers.

Managing Payments on Indiegogo and Kickstarter: Why PhotonPay Makes a Difference

1. Simple and Fast Online Account Setup

• PhotonPay simplifies the process of setting up a payment account online. Compared to the time-consuming and sometimes complex bank account setup, PhotonPay offers a completely digital process. Creators can open their account, collect payments, and get their campaigns up and running quickly.

2. Local Currency Collection and Fast Transfers

• PhotonPay supports a range of local currencies in markets such as the U.S., the EU, the UK, Hong Kong, Japan, Mexico, and others. With direct currency collection, there are no hidden bank fees or intermediary charges. This ensures funds flow to creators quickly, improving cash flow management.
• Whether your project is funded through Kickstarter or Indiegogo, PhotonPay allows international backers to send their contributions in their local currency while ensuring quick deposits and low fees.

3. Flexible Payment Solutions with PhotonPay Card

• When it comes to funding project advertisements or dealing with other marketing expenses, PhotonPay offers the PhotonPay Card—a practical solution for managing payments directly from the available campaign funds. Through the PhotonPay Card, creators can pay for promotional costs on Kickstarter and Indiegogo, optimizing cost-efficiency and boosting the project's visibility globally.

4. Efficient Global Fund Management

• With projects often having backers spread across the globe, managing funds in multiple currencies and countries can become complex. PhotonPay’s solution enables easy conversion between various currencies and smooth transfers, ensuring global projects have better access to funds, without the need for multiple intermediaries.
• PhotonPay’s low-cost processing gives creators a distinct advantage by reducing transaction fees, ensuring more of the funds raised go directly toward the project.

Conclusion