Crowdfunding for the Arts – Part 2

Crowdfunding for the Arts – Part 2

Number crunching

It’s free to start a campaign on each of these platforms. There are fees attaches for each, too, however. It can get complicated at this point. At just 4%, IndieGoGo’s fees were an industry-low. That’s if you’re successful with your project. If you were unsuccessful, however, that fee climbs to 9%. This potential increase was designed to motivate you to get behind your campaign. Now it’s a flat 5% fee. There’s also a 3% + 0.30 per transaction fee its payment processor.

Kickstarter imposes a 5% fee to any project that’s been successful. However, that fee is waived should the project be unsuccessful. Their payments are processed through Amazon, which charges a 3-5% variable fee. You need to ensure that you invest sufficient time in crunching these numbers when deciding on which platform to choose and how much money you’re seeking. You may even want to include the fees as operating costs on your campaign page.

Once you’ve made your decision

Create a “pitch” or campaign that gets across to potential investors just what a fantastic and unique project you have. Then think up some rewards that will make them even more excited to get on board. You’ll also want to use email and such social media platforms as blogging, Facebook, and Twitter to reach out to those who know and love you and who will want to support you. You can use the same platforms to cast your net wider to those who might want to support your project because it strikes a chord in them.

Take what you can or the all-in approach

The idea of Kickstarter donations is that if your project is completely funded, your money goes to you and your rewards go to your donors. If your goal has been unsuccessful, however, nobody wins and no fees are taken. This can be an advantage, in a sense, as it motivates creatives to do all they can in driving traffic to their campaign page. It also removes pressure from the artist in terms of settling for an amount less than they need, and it eliminates a degree of risk, financially. Many projects have made their target in the dying seconds, with the success of these campaigns often likely down to the pressure of Kickstarter’s all-or-nothing nature.

With regards to IndieGoGo, the funding is based around a donation for reward approach, with any monies immediately going to the creative. IndieGoGo takes this approach as they understand that artists are used to working within their means and that the act of staying in contact with donors is the responsibility of the artist.

 

Conclusion

Kickstarter and IndieGoGo are undoubtedly the most known crowdfunding websites but they certainly aren’t the only ones. There are lists of other crowdfunding options available online, along with details and fees. Just try to avoid being overwhelmed. Bear the above points in mind when it comes time for you to make your decision and you’ll make the right choice for you and your project.

Good luck!