Getting the financial support to start your unstoppable
idea can be the only thing standing in between you and the successes of your
dream. Unless you are sitting on a mound
of cash, you will need some type of funding resource to meet the needs of
getting things rolling in the right direction.
Crowdfunding, as its name suggests, is a funding method
where common people like you and me (the crowd)
fund your personal or business project with their own money.
There’s a term that we commonly use to describe this money-giving action; it’s
called a donation.
Different crowdfunding site could have different a purpose or approach, but overall the concept is simple – you post your project to a large group of site users, or "potential investors", and they will fund your project with money if they are interested in the project. You can start a crowdfunding exercise for free as you will only be charged when your project has raised the full amount. There’s nothing to lose and this is great for publicity.
Kickstarter charges 5% fee for every successful project. As Amazon Payment is used to receive the fund, Amazon will apply credit card processing fees, which are 3-5% of your raised project fund. You have to be a permanent U.S. resident with a Social Security number to receive funds for a project.
Indiegogo will get 4% from every raised fund, and 3% will be charged for credit card processing, plus $25 wire fee for non-U.S. campaigns. If you’ve applied for the Flexible Funding plan and your campaign failed to reach the goal, Indiegogo will charge 9% of the fund, but you still get to take the remaining funds away.
GoFundMe takes 5% from each donation (the total donation) you receive. Depending on your preference, you could either use WePay or PayPal to process your payment; they both charge fees ranging from 2.9+% to 3.5%.
Razoo charges a very low rate, just 2.9% of your total fund. Bear in mind that this an all-in flat rate as other crowdfunding site often charge higher than 4% not including credit card fees.
This is pretty complicated. Generally, there’s a flat 4.95% charge for the profit fundraising event, but there’s a blurry transaction fee involved in extra charges. For non-profit organizations, you could choose from a range of account types from free, to one with a $199 monthly fee.
Generally Appbackr takes a certain amount out of your fund to run their crowdfunding business, but there is no fixed percentage here. The amount will depend on your app price, and it could even vary based on several factors. It’s recommended that you read the FAQ and contact them for clarification. This may sound complicated at first, but once you master it, Appbackr could be your goldmine for future app development projects.
So you’ve browsed through a list of quality crowdfunding sites, but in the end you still prefer to let an Angel Investor fund your company. If you need help getting their attention, Crowdfunder can help. Crowdfunder allows U.S. startup and small businesses to raise funds by selling equity, debt and revenue-based securities, while attracting Angel Investors and Venture Capital to your company.
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