THE REAL Cost Of Crowdfunding

We’re all acquainted with the old adage “you’ve surely got to spend cash to make money.” Unfortunately, many newbie crowdfunders seem to forget this fact, and it’s easy to comprehend why. After all, you wouldn’t be requesting others for cash if you were going swimming in it, could you? Despite the groundbreaking advantages crowdfunding provides – increased accessibility to investors, reliable viability testing, and an incredibly fast turnaround – a successful campaign does require an upfront investment.

Whether you’re choosing to self-host with a platform like IgnitionDeck Crowdfunding, or utilizing a third-party crowdfunding service in trade for a percentage of your wages, the “hidden costs” of working a good simple crowdfunding advertising campaign should be carefully considered. In this post, we’ll go over some of the real-world costs involved with creating a successful crowdfunding advertising campaign. We’ll discuss some of the things you might do yourself also, as opposed to employing out, that can save you money.

The true cost of crowdfunding. The first step in evaluating the professionals and disadvantages of hosting a advertising campaign on your own site versus signing up for pushes with a third-party company, is to judge profit sharing costs. Although it used to be that partnering with companies, such as Kickstarter, Indiegogo, and GoFundMe were your only options, nowadays there are lots of options out there for those looking to crowdfund their next task. 149) by hosting the the campaign on your own WordPress site, as opposed to begrudgingly divvying up a sizable chunk of your wages with another host.

The three crowdfunding platforms mentioned previously all have their fees arranged at 5% during writing. 1250 in fees to the website. With IgnitionDeck, you’ll get to keep every buck. But imagine if, for whatever reason, you come up short? What if you don’t make your goal? If you are using Kickstarter, your investors keep their money and you also end up empty-handed. Having a ‘fixed funding’ task Indiegogo will refund your traders and you complete with nothing or they’ll ask you for a 5% fee on every buck raised so far with ‘flexible funding’ projects.

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GoFundMe functions quite similar to Indiegogo. With IgnitionDeck, you received’t be billed anything and every money is kept by you. Obviously, as it pertains to profit-sharing costs, self-hosted crowdfunding offers the best option with “zero.” But that doesn’t indicate it’s for everyone. Keep reading to determine what’s best for you. Though you might be unfamiliar with the term, you use payment gateways all the time actually!

If you’ve ever purchased something online – a Joe-bro’s eyelash; a crazy, cat-lady action figure or something really out there, such as a Netflix membership – you have likely benefitted from a payment gateway. These e-commerce applications authorize, facilitate and protect the transfer of payment information between a payment portal (like your advertising campaign website) to what’s called “leading end processor” (eg.