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by slg 4685 days ago
It is also worth noting that Indigogo has the option for projects to keep the money raised even if it falls below the goal (for a higher cut of the money IIRC). Not only would that alter revenue numbers, but I think it would also influence how projects set their initial goals. Wouldn't you be a little more conservative on your Kickstarter goal since it is an all or nothing situation?
1 comments

Not necessarily. IndieGoGo offers two types of funding: flexible and fixed. Fixed is exactly like KS where you only get the money when you reach your goal. With flexible, you get whatever you raise but are charged different percentages based on whether you reached your goal or not. If you did, you're charged 4% but if you did not, you're charged 9%. Thus you're incentivized to be more conservative on IGG as well.
You basically rephrased exactly what OP said. He's arguing that the % spread isn't as strong an incentive to be conservative in the funding amount.
Hmm. I must have missed the part where he mentioned the higher cut when I first read his comment (or it has been edited since). I assumed he wasn't aware of the higher percentage.