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The Costs Of Crowdfunding

By Ted Hope | Hope for Film September 5, 2011 at 5:30AM

Filmmakers speak of crowdfunding as if it is free money. It isn't. In some instances it isn't even close to being so.
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Filmmakers speak of crowdfunding as if it is free money. It isn't. In some instances it isn't even close to being so.

In Indie Film, where filmmakers are routinely asked to take blood from a stone, you'd think the costs would leap from everyone's tongue.

So what platform, puts the most money into your pocket? Well, the answer ain't so easy.

As this is now the era of the six figure crowdfund raise, the answer is a combination of low fees and high user base. How many campaigns truly open up beyond the friends and family base?

The hard facts are a little easier to come by. Costs, in ascending order:

Kapipal • Currently no fee + PayPal processing fee (~2-4%), (must use PayPal, Italian)
IndieGoGo • 4% fee if you make your goal, 9% otherwise, +3% credit card processing fee
Kickstarter • 5% fee, +3-5% credit card fee (only funded if you make your goal)
Eppela • 5% fee + PayPal processing fee (~2-4%), (must use PayPal, only funded if you make your goal, Italian)
RocketHub • 4% fee if you make your goal, 8% otherwise, +3-5% credit card fee
SoKap • 5% fee, 10% fee on product sold via their marketplace, +3% credit card fee
United States Artists • 15% fee + 4% credit card fee

This article is related to: Crowdsourcing , Financing