Thanks Cristina
Thanks for the post!
If anyone is interested in delving into a little longer explanation, keep reading:
Most, if not all crowdfunding platforms charge some kind of fee, generally deducting fees after a campaign is successful. Kickstarter is an all or nothing platform (meaning if you don't get your set goal within a certain amount of time you get nothing at all) and is a prime example of this:
Kickstarter Fees- 5% of total funds raised
Payment Processing Fees- 3% + $0.20 per pledge
While this is how Kickstarter operates, other platforms charge differently. For example, Indiegogo is alot more complicated. They actually have 2 different funding methods to choose from before you launch your campaign; flexible funding or fixed funding.
Fixed funding in a way is similar to Kickstarter. If you do not achieve your goal within a set amount of time, you get nothing at all. Its fees are as follows; 5% if you reach your goal and 0% if you don't.
Indiegogos flexible funding option means that you get your money even if you don't quite make your goal in time. Its fees are; 5% if you reach your goal and 5% if you don't.
There are also payment processing fees involved of 3-5% for PayPal, 3% + 30 cents for credit card processing, and $25 for bank wire. NOTE: These fees are per transaction.
Some platforms are easy while others are more complicated to understand. It is important to know what you are getting into before just doing it as fees and charges will need to be included in any financial planning that may occur. If anyone has any questions at all, please send me a PM
Thanks all!
Best Regards,
Jakob.
