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Suffice to say, this service works best if you regularly share work on your personal platform. The site allows artists to form relationships with their fans, and creators can even deliver exclusive content to their Patreon subscribers as an incentive to continue funding them. As opposed to you collecting one-off campaign donations, you have a subscription model where patrons regularly contribute a set amount of money every month or per creation. Patreon is popular among digital creatives, such as YouTubers, podcasters, and bloggers. There's a 14-day waiting period for funds if you raise enough money. The fee is 5% on top of processing payment charges (3% to 5%) per transaction. It also means that the funder's credit card won't be charged unless you meet your campaign goal. Kickstarter is an all-or-nothing platform, which means that you don't get your funds unless you complete your campaign. For each level of money raised per individual, you set a small gift or personal experience for your donor.
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FYI: before your campaign can launch, you'll have to be approved by Kickstarter. Begin by setting your goal and then a time period to complete it. It's also easy to use on the fundraising side. Potential funders can browse a number of verticals from arts and film to publishing. The company has raised over $6.2 billion with more than 211,00 (as of November 2021) projects funded since its inception in 2009.
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Kickstarter is one of the biggest names when it comes to crowdfunding, known for helping tech and creative entrepreneurs fund their projects before getting a loan or raising money for venture capital. Below, we take you through some of the Internet’s best crowdfunding sites. Many platforms will take processing fees from each contributing transaction as well as a percentage of your overall earnings, while a few sites use an all-or-nothing model, which means you only get your money if you reach your intended goal. When you’re looking for a site to fundraise, you want to check for fees as well as if it’s an all-or-nothing site. And last but not least, equity crowdfunding means you give a portion of company ownership to the people who provide you with funding. Some prefer this over a bank loan because it can be much faster. As for debt crowdfunding, you receive a loan and pay it within a specific time frame. With reward crowdfunding, you raise your funds by reaching out to supporters, who receive a small gift or product sample if they pledge a certain amount. There are typically three types of crowdfunding: reward crowdfunding, debt crowdfunding, and equity crowdfunding. Individuals or small businesses can take advantage of it to get early-stage support for their ideas. Crowdfunding simply refers to the idea of raising funds for a project or cause through a large group of people online. We may receive commissions on purchases made from our chosen links.Įven if you’ve never heard the term crowdfunding, you’ve probably come across an example of it on social media. You can learn more about our independent review process and partners in our advertiser disclosure. Our editors independently research and recommend the best products and services.