Crowdfunding Fees for Successfully Funded Projects on Backer.org Compared with Other Popular Reward-Based Crowdsourced Funding Sites (PledgeMusic, IndieGoGo, Kickstarter)
We’ll cut to the chase and let the numbers (the ‘crowdfunding fees’) do the talking. Below are three popular crowdfunding platforms with the average associated fees that project creators will incur if the funding goal is reached:
- PledgeMusic: 15% (admin fee ‘absorbs’ card processing fees)
- IndieGoGo: 11.9% (9% admin fee + 2.9% average card processing fees)
- Kickstarter: 9% (5% admin fee + 4% average card processing fees)
Is this a fair deal for artists? We don’t think so. This is one of the main reasons why we – the Backer Team (artists ourselves) – set up Backer.org.
To make matters worse, these popular sites offer very little personal support and specific campaign advice for creators. The large volume of traffic to their homepages rarely translates into anyone other than known friends, relatives and supporters backing projects anyway… so what’s the point? In fact, often interesting artistic projects featured on overcrowded sites like IndieGoGo get overshadowed by the entrepreneurs’ ambitious funding campaigns.
Compare our crowdfunding fees for successful projects on the Backer website and its a no-brainer (we think so, at least):
Backer.org: 5% (3% admin fee + 2% average card processing fees)
N.B. If the average funding goal for creative projects is £2500 (which it roughly is), you could save up to £250 on crowdfunding fees (when compared with PledgeMusic) just by using Backer.org. If the average pledge is around £25 (which it roughly is), that’s 10 fewer pledges you need to get to reach your funding goal. Frankly, it’s much easier to reach your goal when you’re not raising money for an organisation’s administration team!
Consider this alongside the fact that Backer aims to interact with all of its project creators, helping them get set up and guiding them with relevant crowdfunding campaign advice when required, it really makes you wonder how other sites can get away with charging so much.
Making sure running costs stay as low as possible is a priority for us but Backer exists to support artists in any way we can, not just with reduced fees. Try us and you’ll see for yourself. There are never any charges for unsuccessful projects so there’s nothing to lose apart from a bit of time and effort setting up and promoting your project.
Yes, we are only interested in projects that present new and original artistic ideas. But that’s not a niche; it’s just a more exciting way to run a crowdfunding platform in our opinion. It allows us as artists to be more involved with the support and promotion of the arts more widely. At a time when, unfortunately, so much public funding has dried up, artists have to raise money in all sorts of innovative ways. We think we can help with this process, without charging creators 9-15% of their pledges!
We hope this article demonstrates why Backer.org is a great crowdfunding option for artists but, if you need more convincing, please don’t hesitate to drop us a line or speak to those who’ve used the website before. We hope Backer can help you raise money for you next creative project. Give it a shot!