Comparing Crowdfunding; Why Kickstarter Isn't Your Best Option
posted in: Country • Features • Latin • Pop • Rock • Urban
The concept of the struggling artist is nothing new and in fact, it’s more prominent today than ever before. Playing frequent shows, selling merch and making quality music aren’t always enough to pay the bills these days. Often times, you may find yourself aching to create a new album, some new music videos, or invest in better equipment. But without the cash, what’s a struggling band to do?
Enter: crowdfunding. Most are familiar with the crowd-funding platform Kickstarter. However, Kickstarter isn’t your only option and in fact, not always your best.
Did you know that Kickstarter only accepts 60% of applications and only has a 44% success rate? Read on after the jump for our comparison of three of the top crowd funding sites: Kickstarter, IndieGoGo and Crowdtilt.
Kickstarter has been at the forefront of crowd-funding platforms for a while now, and primarily focuses on creative projects, making it perfect for bands. But with a low approval and success rate, it may not be for everyone.
Success Rate: 43.83%
Approval rate: 60%
Fee: 5% fee from Kickstarter and 3-5% for payment processing from Amazon.
Countries: Must live in US to create and donate.
Comments: In order to receive funding, you must reach your full asking price in donations. Think of it as the internet version of Shark Tank, minus Mr. Wonderful. In addition, there is a holding time for funds.
IndieGoGo is the best of both worlds. While their success rate is similar to Kickstarter, they approve everyone, take on a myriad of projects and their processing fee isn’t as large. They are also international, so anyone can create and donate. The best part? If you don’t meet your full goal, you still have the choice to keep what you’ve earned, with a slightly higher fee.
Success Rate: 40%
Approval Rate: 100%
Fee: 4% for IndieGoGo, 2.9% for third party payment processing.
Countries: Any
Comments: You do not need to raise your full requested amount. However, if you do not reach your goal, you have the option of refunding contributors money, or keeping it and paying a 9% fee.
Crowdtilt is relatively new to the scene, and although it originally started out funding charities, it has expanded to anything from house parties to album creation. It holds the same all-or-nothing payment plan as Kickstarter, but with its social media integration, it boasts not only a 100% acceptance rate, but also a whopping 91% success rate.
Success Rate: 91%
Approval Rate: 100%
Fee: Flat 2.5%
Country: Must be in US to start campaign however, you can accept donations from all over the world.
Comments: If you start a Crowdtilt this November, and use the code movember (yes, with an ‘m’) Crowdtilt will give you $20 towards your cause. Thinking of using the site for Hurricane Sandy relief? Use promo code sandyrecovery here and all fees will be waived.
You must meet your goal in order to receive donations. Primarily relies on social networks, and requires a Facebook account to sign up. Because this is such a social platform, it’s perfect for musician’s reaching out to fans, family and friends.