Crowdfunding Alternative

Granted, this particular crowdfunding alternative isn’t something most people could do easily as it requires a lot of work, and potentially a hefty budget. However, it’s possible without the hefty budget if you get enough people on board to help get it going.

Here’s the link – https://www.cnbc.com/2014/09/23/the-man-who-made-50-million-ditching-kickstarter.html.

It’s not for the faint of heart as the amount of work it took for this to get off the ground is not something most people are willing to do. On the plus side, this campaign shows what is possible. That’s not to say that a dedicated group with limited funds couldn’t pull this off.

One of the biggest issues with typical crowdfunding sites is how much you pay out in various fees. It can easily be 8 – 10%, or more between the fees charged by the crowdfunding site and the payment processing fees. Here’s a comparison of Kickstarter, GoFundMe, and Indiegogo fees: https://grasshopper.com/resources/tools/crowdfunding-platforms-kickstarter-gofundme-indiegogo/.

The above doesn’t include if you add a pledge manager, but in many cases, the additional costs for a pledge manager are frequently offset by the additional revenue generated. Also, pledge managers may charge lower fees that translate to savings over including things with a crowdfunding site. A good example is postage. Several creators opt to add shipping through the pledge manager as the fees were lower than if they included shipping as part of the crowdfunding campaign.

If you go with a crowdfunding site, check out how much you anticipate raising as you may find a wide variation between the sites. Also look at the different pledge managers as costs can vary significantly depending on the size of your campaign.

About ICT Genealogist

Originally from Gulfport, Mississippi. Live in Wichita, Kansas now. Let's collaborateDealspotr.com
This entry was posted in Crowdfunding, GoFundMe, Indiegogo, Kickstarter, Social Media and tagged , , . Bookmark the permalink.

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