Choosing the right platform is critical when launching a crowdfunding campaign. To put it another way – and we’re totally not trying to freak you potential crowdfunders out here – choosing the wrong one can be an early kiss of death… or at least a major hurdle to leap once launch day rolls around.
Pozible and Kickstarter, two big names in Australia’s burgeoning crowdfunding scene, may appear similar at first, but the differences between the two are enough to bear some serious consideration if you’ve decided to kick off a campaign of your own.
Success rates: look a little closer
In some ways, a platform’s numbers are like stats in professional sports – they’re helpful, and they can certainly tell you a lot… but they can also be quite misleading.
Take, for instance, the success rates attached to Pozible and Kickstarter.
Things change when you start looking at individual categories however, and the numbers suggest choosing a platform based on your own project’s genre may be a smart move.
Art-related projects are a good example of this: the above-linked Kickstarter stats page says 48% of projects in the category have found successful funding. By comparison, Pozible boasts a gaudier 59% success rate for art campaigns.
Apples-to-apples comparisons are unfortunately not always available between the two – Kickstarter’s published stats are far more detailed, partially due to Pozible’s looser content restrictions – but you can get a feel for each site’s strengths and weaknesses by looking at projects similar to your own.
The local angle
Though Kickstarter clearly respects its Australian client base quite a bit – Oz is one of only five countries served by the platform – Pozible obviously has the upper hand in terms of local flavor and support, being an Australian-based company.
Do you think your project has international appeal? Kickstarter may be the way to go, since potential backers from all over the world will have a chance to view it.
If, on the other hand, you think a ‘made in Australia’ angle might curry some favor, consider Pozible – though they’re open to creators and backers from anywhere, 60% of the site’s visitors come from Australia.
Funding methods and project types
Kickstarter’s payments come in a single lump sum, and then only if the campaign successfully meets its funding goals.
Pozible offers a little more flexibility: alongside the all-or-nothing approach, campaigns can solicit monthly payments, with donors agreeing to pay once a month instead of forking over a single lump sum.
The difference in attitude also reflects in the types of projects each platform allows.
A recent TechCrunch writeup says Pozible will generally accept campaigns with “clearly defined creative outcomes”, making it great for projects that don’t fall within Kickstarter’s fairly rigid list of categories.
Considering the differences in their respective approval processes – Kickstarter’s is fairly exacting and can take months to approve during busy times, while Pozible’s is fast and more permissive – it’s important to make sure your platform of choice supports your project before making the leap.
Post campaign, get money
Pozible terms: 5% standard fees, 4% for invitations from previous successful project creators, plus transaction feeds – which range from 2.4% to 2.7% plus $.30 for each pledge. Pozible also accepts Bitcoin pledges and will pay in Bitcoins via Coinjar.
Kickstarters terms: 5% fee on total payments, plus payment processing fees (3% and AU $.20 for each pledge). If funding isn’t successful, there are no fees.
Pozible looks like it will probably end up paying out more on a given amount, especially for those going through Pozible on a second process.
Whichever platform you choose, running a crowdfunding campaign (successful or otherwise) can be an exhausting, exciting and ultimately rewarding process.
Will picking the right service guarantee you a successful campaign and the adulation of the Internet at large? Absolutely not – but it’ll undoubtedly be a step in the right direction for a project you want the rest of the world to love as much as you do.
Are there other options?
IndieGoGo offer a similar service, but is not as well known. IndieGoGo is a donation-driven site where funds are disbursed immediately to the creator, with a small bonus if the goal is met before the deadline. The biggest advantage is that any amount of funds contributed will go to the creator, even if the bonus isn’t met, at a 9% fee structure. That makes it different to Kickstart and Pozible, which is why we didn’t consider them as head-to-head competitors.
Techly spoke to a creator who had used Indiegogo – who explained “The main advantage really is that you can get the money even if you don’t reach your goal. Probably the main drawback is just that their name isn’t as well-known, so saying “donate to my Indiegogo” doesn’t trigger the same recognition in people.”