The use of crowdfunding to finance initiatives and endeavors by business owners, creatives, and people is growing in popularity. The most well-known crowdfunding websites are GoFundMe and Kickstarter. Although both platforms let people generate money, there are some significant variations between them.
A platform called Kickstarter was created exclusively for creative endeavors including product creation, music and film production, and art installations. However, GoFundMe is a website that may be utilized for a larger range of fundraising requirements, such as private situations, charitable causes, and medical costs.
The funding models used by Kickstarter and GoFundMe are one of their largest contrasts. According to the all-or-nothing business model used by Kickstarter, campaigns are only funded if they raise the required amount of money. In contrast, GoFundMe lets creators keep every dollar raised, whether or not they meet their goal.
The fees that each platform levies are another significant distinction. In addition to the 3-5% fee for payment processing, Kickstarter levies a 5% fee on all cash raised. GoFundMe has no platform fees, but it does charge roughly 2.9% + $0.30 for processing each gift.
Both sites are free to use to launch a campaign. Creators must, however, adhere to certain guidelines, such as being above 18 and having a bank account. Additionally, GoFundMe enables creators to launch their campaigns right away, whereas Kickstarter needs creators to submit their projects for approval prior to launching.
While platforms like Kickstarter and GoFundMe might be useful for raising money, it’s vital to realize that success is not always assured. Campaign creators must exert a lot of work to publicize their initiatives and draw supporters. Furthermore, it’s critical to have a well-articulated objective and a detailed plan for how the funds will be used.
Campaigns on both platforms have the potential to be beneficial in terms of profitability. But a lot of that depends on the product and the work done to promote it. It’s also critical to remember that crowdfunding is not a replacement for a sound financial plan or business strategy.
Since it depends on the project and its requirements, there is no defined limit on how much money can be borrowed from Kickstarter. However, Kickstarter advises choosing a financing target that is reasonable given the project’s resources and requirements.
Last but not least, Launch Boom is a business that specializes in assisting business owners in starting successful Kickstarter crowdfunding campaigns. To help creators increase their chances of success, they provide services including product design, video creation, and marketing strategy.
In conclusion, despite the fact that both Kickstarter and GoFundMe are well-known platforms for crowdsourcing, they have different financing processes, costs, and specifications. Before starting a campaign, creators should be aware of these distinctions and have a solid plan in place. Crowdfunding may be a successful technique to generate money and realize creative initiatives with work and smart planning.
The fact that there is no assurance the project or campaign will be successful and backers might not see a return on their investment or contribution is one drawback of crowdfunding. Furthermore, there have been instances of deceptive campaigns where the creators accept the money but fail to deliver on their promises.