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If you decide that crowdfunding might be the right way to go for launching your product, the question will be which platform to launch on? For electronics, there are three choices: Kickstarter, IndieGoGo, and Crowd Supply. You might not have heard of Crowd Supply as they are much smaller than Kickstarter and IndieGoGo; however, they are purely tech oriented and when it comes to support and they offer a lot more to creators than the Big Two.
If you’re looking to make your first product and need help with the startup expenses, Crowd Supply would be my choice, as it has several exciting options for creators that the other two do not. Post-campaign management is easier through Crowd Supply, too. If you expect to be driving the majority of the traffic towards your campaign through your own marketing efforts (e.g., a niche product), then Crowd Supply would be my go-to as well.
If you’re looking to gain extra reach instead of covering the costs of getting your product to market, launching on both Kickstarter and IndieGoGo at the same time could be the optimal choice, as it enables you to make use of their traffic/existing users.
IndieGoGo and Kickstarter have had a multitude of million-dollar campaigns each. If you’re a small business or a hobbyist, however, you probably don’t want to get anywhere near this sale volume unless your product is highly priced. Hiring all the staff, leasing offices and everything else that comes with handling that many orders from nothing are going to consume far more energy and potentially be more expensive than actually building your product.
If you are in a position to handle a million dollar campaign, or even numbers approaching that, then IndieGoGo might be the better option, especially if you are planning to seek venture capital in the future. IndieGoGo is potentially an easy route to venture capital as successful campaigns can proceed on to their venture capital platform.
Kickstarter has an enormous user base and many campaigns running. This built-in community can allow you to shine with a well-presented campaign. Becoming a “Staff Pick” can pretty much instantly break your funding goal if you have a product with broad interest. The creator tools are pretty simple to use, and it’s not hard to create or run a campaign on the platform.
However, Kickstarter can let you down post-campaign. I previously mentioned the sheer effort you’ll have to put into customer service/data management post-campaign, and this is where Kickstarter starts to become challenging. Kickstarter, as well as IndieGoGo, doesn’t allow you to do something as simple as print a packing slip for every backer. You’ll need to develop tools for this or pay for a service like BackerKit to do it for you.
Upselling through Kickstarter is pretty tricky. For example, if you want to offer a branded T-shirt during the campaign for an extra $5 in addition to the product purchase, you’ll need to ask every backer who wants one to pledge an additional $5 to the campaign. Then try to figure out what this extra amount is for post-campaign. If you have multiple upsells that are all $5, you will have no way of telling what the customer is trying to buy with the additional funds. Again, you can pay for a third-party service to do this for you, or spend the time developing your own if you are a skilled web developer.
If you need to raise over $100,000 and plan to have the budget to hire people or third-party services to deal with the shortfalls of Kickstarter’s post-campaign management, then this might be the right platform for you.
IndieGoGo, like Kickstarter, has a vast user base. IndieGoGo and Kickstarter have a pretty even market share. Like Kickstarter, IndieGoGo has some great tools for creating a campaign, and sadly, just like Kickstarter, it can let creators down post-campaign.
Once again, merely creating a packing slip for shipping to a customer requires third-party websites or in-house tools. There are fewer tools available for IndieGoGo than Kickstarter; however, the data from IndieGoGo is easier to work with yourself if you’re up to the challenge of developing your own tools.
Just like Kickstarter, upselling isn’t particularly feasible, and just like Kickstarter, if someone wants two of something, they will need to back the campaign twice (and to pay for shipping twice if the products have shipping costs).
Similar to Kickstarter, this could be the right platform for you if you’re looking at making a significant amount on pre-sales due to the large built-in user base. As mentioned earlier, it could also be the right platform if you’re looking to gain venture capital after the campaign has concluded.
Crowd Supply has a much smaller volume of traffic than the big two but has an audience exclusively made up of geeks and tech-savvy individuals. If you’re creating a niche product, or not relying on the native platform traffic as part of your marketing, then Crowd Supply is an excellent option.
If you’re looking at raising millions of dollars for a project, Crowd Supply might not be the right platform for you as it is much smaller, and you’ll need to drive a very significant amount of that traffic to the platform yourself (or engage their marketing team to do so). If you’re looking to raise anywhere between $1,000 and $100,000, then this could be the right platform for you.
Unlike Kickstarter and IndieGoGo, Crowd Supply can handle all your fulfillment and marketing needs if you are willing to pay a higher percentage of your raised funds to them.
As a smaller company, Crowd Supply needs to be innovative, so they strive to provide more support and post-campaign tools than the Big Two provide. This additional support makes it very attractive to smaller businesses and those that have a niche product.