Who Needs Kickstarter And IndieGoGo? Crowdfund Yourself

After a crowdfunding site made big promises to filmmaker Stuart Acher, then reneged on those promises, he was left with two days until his film #Stuck would launch with no crowdfunding in sight. So, he and his partners at FilmBreak built one from scratch.

FilmBreak believes that it is simply too expensive to use existing platforms and the there’s not enough value exchange. Most platforms charge a 7 to 12% fee to host a crowdfunding campaign but offer little to no marketing help or discoverability. While it is arguable that these platforms do not help you enough, FilmBreak is aiming to reduce costs and increase marketing and distribution help, at least for filmmakers.

Crowdfunding, as many Forbes articles point out, is a wildly successful and perhaps world-changing phenomenon. Here are a few stats from CrowdSourcing.org 2013 report as well as the fees from the big players directly.

  • There were 452 active crowdfunding platforms globally (as of April 2012)
  • An estimated 1 million campaign were funded in 2012
  • Platforms raised $2.7B in 2012, an 81% increase from 2011
  • Industry expected to grow to $5.1B in 2013

Kickstarter clone fee for successful projects is 5%, Amazon fee is 3-5% on top of that. IndieGoGo gives you two options: Flexible funding is 9% if goal is not reached, 4% if goal is reached, then 3% for credit card processing. Or, you can choose Fixed funding where you, as the creator set the goal. You will only get funds if the goal is reached: 4% if goal is reached, 3% for credit card. FundAnything: offers the same deal as IndieGoGo. CrowdTilt has a 2.5% fee if the goal is reached plus 2.5$ for credit card processing.

Read more : http://www.forbes.com/sites/tjmccue/2013/12/23/who-needs-kickstarter-and-indiegogo-crowdfund-yourself