How Does Funding Work On Indiegogo?



Welcome to the world of crowdfunding! If you have ever had a brilliant idea for a project or product but lacked the financial resources to bring it to life, Indiegogo may just be the platform for you. Indiegogo is a popular crowdfunding website that allows individuals and organizations to raise funds for their creative and innovative endeavors.

With Indiegogo, you have the opportunity to reach a wide audience of potential backers who believe in your vision and are willing to contribute financially to make it a reality. Whether you’re a budding entrepreneur, an artist, or a social activist, Indiegogo offers a platform for you to showcase your ideas and gain support from like-minded individuals.

With its user-friendly interface and robust features, Indiegogo has helped countless individuals and organizations achieve their funding goals and bring their projects to life. But how exactly does funding work on Indiegogo? In this article, we will explore the process of funding on Indiegogo, the different types of campaigns, the fees involved, and how you can set up a successful crowdfunding campaign on the platform.

Whether you’re looking to launch a new tech gadget, produce a film, or fund a charitable cause, understanding the ins and outs of funding on Indiegogo is vital to maximizing your chances of success. So, let’s dive in and explore how you can turn your dreams into reality with Indiegogo!


What is Indiegogo?

Indiegogo is a leading crowdfunding platform that allows individuals and organizations to raise funds for their projects, ideas, and businesses. Founded in 2008, it has become a go-to platform for creative entrepreneurs, artists, inventors, and activists to bring their visions to life.

Unlike traditional funding methods, such as loans or venture capital, crowdfunding through Indiegogo involves reaching out to a large number of people, known as backers, who contribute small or large amounts to your project. The Indiegogo platform acts as a facilitator, connecting project creators with potential funders from all around the world.

One of the key features that sets Indiegogo apart from other crowdfunding platforms is its flexibility. While some platforms operate on an all-or-nothing basis, meaning projects must reach their funding goals within a specific timeframe or receive no funds at all, Indiegogo offers both flexible and fixed funding options to cater to the needs of different campaigns.

Indiegogo also provides a range of tools and resources to help project creators promote their campaigns, engage with backers, and manage their fundraising efforts. From customizable campaign pages to social media sharing tools, Indiegogo equips creators with the necessary tools to maximize their campaign’s visibility and attract backers.

Beyond raising funds, Indiegogo serves as a platform for community-building and networking. It allows creators and backers to connect and collaborate on projects, fostering a sense of collective support and shared vision.

Whether you’re an entrepreneur looking to launch a new product, an artist seeking funding for a creative endeavor, or a social activist hoping to make a difference, Indiegogo provides a platform for you to pitch your idea, raise funds, and ultimately turn your dreams into reality.


How does funding work on Indiegogo?

When it comes to funding on Indiegogo, the process is straightforward yet dynamic. Here’s a step-by-step breakdown of how funding works on the platform:

  1. Create a campaign: The first step is to create a campaign on Indiegogo. This involves providing details about your project, setting a funding goal, and showcasing your vision through text, images, and videos.
  2. Promote your campaign: Once your campaign is live, it’s crucial to promote it to reach a wider audience. Indiegogo provides built-in social sharing tools, allowing you to spread the word through your social networks, email contacts, and other channels.
  3. Attract backers: Backers are individuals who contribute financially to your campaign. They can choose to back your project by making a contribution in exchange for rewards or simply by supporting your cause without expecting anything in return.
  4. Raising funds: As backers contribute to your campaign, the funds will start to accumulate in your Indiegogo account. You can track the progress of your funding in real-time, which helps in analyzing your campaign’s performance and adjusting your strategies if needed.
  5. Flexible vs. Fixed funding: Indiegogo offers two funding options: flexible and fixed. In flexible funding, you keep the funds you’ve raised, even if you don’t reach your funding goal. With fixed funding, you must reach your goal within the specified timeframe; otherwise, the funds are returned to the backers.
  6. Receiving funds: When your campaign ends, and you’ve successfully reached your funding goal, Indiegogo will process the funds. Depending on your campaign settings, you can choose to receive the funds immediately or at a later date.
  7. Delivering rewards: If you have offered rewards to your backers, it’s essential to fulfill your commitments. Indiegogo provides tools to manage and communicate with your backers, ensuring a seamless process of delivering rewards and maintaining good relationships.
  8. Maintaining transparency: Throughout the funding process, it is crucial to keep your backers informed and engaged. Regular updates, sharing progress, and addressing any issues or concerns help build trust and credibility with your backers.

Now that you have a better understanding of how funding works on Indiegogo, you can dive into creating your own crowdfunding campaign with confidence and embark on a journey to turn your ideas into reality.


Types of campaigns on Indiegogo

Indiegogo hosts a diverse range of campaigns that cater to various interests and causes. Here are some of the common types of campaigns you can find on the platform:

  1. Product-based campaigns: One of the most popular types of campaigns on Indiegogo is product-based campaigns. These campaigns focus on raising funds for the development, production, or launch of new and innovative products. From cutting-edge tech gadgets to eco-friendly inventions, product-based campaigns offer backers the opportunity to be early adopters and get their hands on exciting new products.
  2. Creative projects: Indiegogo is a platform that celebrates creativity in all its forms. Artists, musicians, filmmakers, and writers often create campaigns to fund their creative projects. Whether it’s producing a film, recording an album, publishing a book, or organizing an art exhibition, creative campaigns on Indiegogo allow artists to gather support and resources to bring their visions to life.
  3. Social causes: Indiegogo is not just limited to commercial ventures. It also serves as a platform for campaigns that aim to create positive social impact. Whether it’s funding a humanitarian project, supporting a charity, or raising awareness for a social issue, campaigns for social causes on Indiegogo help individuals, organizations, and communities come together to make a difference.
  4. Community projects: Indiegogo is a place where communities can rally behind common goals and aspirations. Community projects can include campaigns for building a playground, renovating a community center, organizing a local event, or any other initiative that brings people together within a specific locality or interest group.
  5. Health and wellness campaigns: The Indiegogo platform is also a hub for campaigns related to health and wellness. These campaigns can range from medical treatments and research projects to fitness programs, alternative therapies, and the development of health-related products. Backers can contribute to these campaigns to support personal health journeys or to advance scientific understanding and research in the field of healthcare.

These are just a few examples of the different types of campaigns you can find on Indiegogo. As you explore the platform, you’ll come across an array of unique and inspiring campaigns that align with your interests and values.

Indiegogo truly captures the essence of crowdfunding by providing a platform where passionate creators, entrepreneurs, and visionaries can bring their ideas to the world and receive the necessary support to turn their dreams into reality.


How to create a campaign on Indiegogo

Creating a campaign on Indiegogo is a relatively simple process that allows you to showcase your project and attract backers. Here’s a step-by-step guide on how to create a campaign on Indiegogo:

  1. Sign up and log in: Visit the Indiegogo website and sign up for an account. If you already have an account, log in to your existing account to get started.
  2. Create a new campaign: Once you are logged in, click on the “Start a Campaign” button to begin the process of creating your campaign.
  3. Choose campaign type: Select the type of campaign that best aligns with your project. Indiegogo offers options such as “Fixed Funding” or “Flexible Funding,” so you can choose the funding model that suits your needs.
  4. Provide campaign details: Fill in the required campaign details such as the title, category, campaign duration, funding goal, and a captivating campaign description. Be sure to include engaging visuals, such as images and videos, to enhance your campaign page and grab the attention of potential backers.
  5. Create enticing perks: Offer rewards or perks to incentivize backers to support your campaign. These can range from exclusive early bird discounts, limited-edition merchandise, or personalized experiences related to your project. Make sure to clearly define the perks and set realistic delivery timelines.
  6. Set up payment and funding details: Indiegogo provides options for accepting payments from backers, including credit card payments and PayPal. Configure the payment settings and decide whether you want to offer refunds if your project cannot be fulfilled.
  7. Customize your campaign page: Indiegogo offers customization options to make your campaign page unique and visually appealing. Add visually appealing banners, project updates, and customize the layout to make your campaign more engaging.
  8. Publish your campaign: Review all the information you provided, make necessary edits, and when you are satisfied, hit the “Publish” button to launch your campaign to the public.
  9. Promote your campaign: Once your campaign is live, it’s crucial to promote it to reach a wider audience. Share your campaign on social media, reach out to friends, family, and colleagues, and leverage your personal and professional networks to spread the word about your campaign.
  10. Engage with backers: As your campaign progresses, interact with your backers by responding to their questions, sharing updates, and expressing gratitude for their support. Building strong relationships with your backers is key to maintaining their trust and ensuring a positive crowdfunding experience.

By following these steps and investing time and effort into creating a compelling campaign, you can increase your chances of attracting backers and reaching your funding goals on Indiegogo. Remember to continually monitor and optimize your campaign based on the feedback and engagement you receive, and adapt your strategies accordingly.


Setting up your funding goal

One of the critical decisions you’ll make when creating a campaign on Indiegogo is setting your funding goal. Your funding goal determines the amount of money you aim to raise to bring your project to life. Here are some tips for setting up your funding goal:

Research and planning: Before you set your funding goal, conduct thorough research to understand the costs involved in your project. Evaluate all aspects, including production, marketing, shipping, and any other expenses related to your campaign. Consider factors such as manufacturing costs, materials, labor, packaging, and shipping fees. This research will give you a realistic idea of the funding you’ll need to make your project successful.

Be realistic: It’s crucial to set a funding goal that is achievable. While it’s tempting to aim high, it’s important to be realistic about your project’s potential and the size of your current audience. Evaluate the demand for your project or product, your existing network, and your marketing capabilities. Setting a funding goal that is too high may discourage potential backers, while setting it too low could leave you unable to fulfill your commitments.

Consider stretch goals: If you believe that your project has the potential to surpass your initial funding goal, consider setting stretch goals. Stretch goals are additional funding milestones that unlock new features, upgrades, or rewards for your backers. These goals can help generate excitement and encourage backers to contribute more towards your campaign.

Add a buffer: It’s always wise to include a buffer in your funding goal to account for unexpected expenses or fluctuations in manufacturing or shipping costs. Adding a contingency percentage will help ensure you have the necessary funds to cover any unforeseen circumstances that may arise during the course of your project.

Communicate transparency: When setting your funding goal, be transparent with your backers about how the funds will be used. Clearly communicate the breakdown of costs and expenses, and provide detailed information on how their contributions will directly support your project. This transparency builds trust and reassures backers that their funds will be utilized responsibly.

Value proposition: Frame your funding goal in a way that clearly communicates the value proposition to your backers. Articulate the benefits of supporting your project and how their contributions will make a tangible impact. Show them how their support will help bring your vision to life and the potential rewards they will receive for their backing.

By carefully considering these factors and setting a thoughtfully determined funding goal, you increase your chances of attracting backers who are willing to support your project and help you achieve your crowdfunding objectives on Indiegogo.


Flexible vs Fixed Funding

When creating a campaign on Indiegogo, you have the option to choose between two funding models: flexible funding and fixed funding. Understanding the differences between these models is crucial for determining the most suitable option for your project. Here’s a breakdown of flexible and fixed funding:

Flexible Funding:

Flexible funding allows you to keep the funds you raise, regardless of whether you reach your initial funding goal or not. This means that even if you fall short of your target, you can still access and utilize the funds contributed by your backers.

This funding model works well for projects with lower financial requirements or those that have various stages of development. It gives you the flexibility to proceed with your project even if you don’t achieve your entire funding goal.

However, it’s important to note that flexible funding does come with its own considerations. If you don’t reach your goal, you may need to adapt your plans and budget accordingly, as the funds raised may not be sufficient to fully realize your original vision.

Fixed Funding:

Fixed funding is a model where you must reach your full funding goal within a specific timeframe for the campaign to be successful. If you don’t reach the target, the funds are returned to the backers, and you don’t have access to any of the funds raised.

This model is suitable for projects that require a specific amount of funding to be viable. It provides a clear threshold that must be achieved to move forward with your project. Fixed funding also helps instill confidence in your backers, knowing that their contributions will only be utilized if the full funding goal is reached.

If you choose fixed funding, it’s crucial to set a realistic goal based on your project’s needs and audience potential. Ensure you have a solid plan and marketing strategy in place to maximize your chances of meeting the funding goal within the campaign period.

Ultimately, the choice between flexible and fixed funding depends on the nature of your project, its financial requirements, and your overall strategy. Consider your project’s scope, your ability to adapt if funding falls short, and the expectations and preferences of your target audience when deciding between the two funding models on Indiegogo.


Campaign Fees on Indiegogo

When launching a campaign on Indiegogo, it’s important to understand the fees associated with using the platform. Indiegogo charges various fees to cover the costs of maintaining the platform and providing support to campaign creators. Here’s an overview of the campaign fees on Indiegogo:

Platform fee:

Indiegogo charges a platform fee for using their crowdfunding services. The platform fee is typically a percentage of the total funds you raise during your campaign. This fee goes towards covering the operational and administrative costs of running the Indiegogo platform and providing support to campaign creators. The exact percentage of the platform fee may vary based on factors such as campaign type and the region you’re operating in.

Payment processing fees:

In addition to the platform fee, there are payment processing fees associated with accepting contributions through Indiegogo. These fees cover the costs incurred by Indiegogo for processing credit card transactions and other forms of payment. The payment processing fees are generally a percentage of each contribution, and may also include a fixed fee per transaction.

Additional fees:

Depending on the services or features you choose to utilize for your campaign, there may be additional fees applicable. For example, if you opt to use Indiegogo’s InDemand service, which allows you to continue accepting contributions even after your initial campaign has ended, there may be fees associated with this service. It’s important to carefully review the terms and conditions of any additional services or features you decide to use and understand any associated fees.

Keep in mind that campaign fees on Indiegogo can vary based on several factors, such as campaign type, location, and the specific services you choose. It’s always a good idea to review the current fee structure on the Indiegogo website or consult with their support team for the most up-to-date information.

Calculating and factoring in these fees into your budget planning is essential to ensure you have a clear understanding of the financial implications of your campaign and how much funds you will ultimately receive for your project. It’s important to consider these fees when setting your funding goal and determining the total amount you need to raise on Indiegogo.

By being aware of the campaign fees on Indiegogo and incorporating them into your financial strategy, you can effectively plan your fundraising efforts and ensure transparency with your backers regarding how those funds will be utilized for your project’s success.


Managing Funds and Payments

As a campaign creator on Indiegogo, managing funds and payments is a crucial aspect of running a successful crowdfunding campaign. Here are some key considerations for effectively managing funds and payments on Indiegogo:

Fund disbursement:

Once your campaign ends and you’ve reached your funding goal, Indiegogo will facilitate the disbursement of funds to you. The funds are typically transferred directly to the bank account you have linked to your Indiegogo account. It’s important to ensure that your banking information is accurate and up to date to avoid any delays in receiving your funds.

Payment processing:

Indiegogo handles the payment processing for your campaign, collecting contributions from backers and processing credit card transactions or other forms of payment. Indiegogo deducts the appropriate payment processing fees from each contribution before transferring the funds to your account. It’s important to familiarize yourself with the payment processing fees and ensure they are factored into your financial planning.

Budget management:

Once you receive the funds from your campaign, it’s crucial to manage your budget effectively to ensure the smooth execution of your project. Create a clear budget plan that outlines your expected expenses, including production costs, manufacturing, marketing, shipping, and any other relevant expenses. Regularly monitor your spending to stay within budget and make adjustments if necessary.

Communication with backers:

Transparency is key when it comes to communicating with your backers regarding the management of funds. Provide regular updates on your progress, including how the funds are being utilized, any challenges you are facing, and milestones you have achieved. Establish trust and maintain open lines of communication to keep your backers engaged and informed throughout the process.

Reward fulfillment:

If you have offered rewards to your backers, it’s important to fulfill them in a timely manner. Clearly define the delivery timeline for each reward and keep your backers informed about the progress. Regularly update your backers on the status of reward fulfillment and address any issues or delays that may arise. It’s crucial to maintain good communication with your backers to ensure a positive crowdfunding experience for everyone involved.

Financial reporting and accountability:

Keep detailed records of your campaign’s financial transactions and expenditures. This will help you track your funds, maintain transparency, and ensure accountability. Use financial management tools to help streamline this process and easily generate reports or summaries for your own reference or for any potential audits or financial inquiries.

By effectively managing your funds and payments on Indiegogo, you can ensure a smooth and transparent financial operation for your crowdfunding campaign. This will not only help you successfully execute your project but also build trust among your backers and maintain a positive reputation as a campaign creator.


Rewards for Backers

One of the key elements of a successful crowdfunding campaign on Indiegogo is offering attractive rewards to entice and thank your backers for their support. Rewards not only serve as a token of appreciation but also act as incentives to encourage more people to back your campaign. Here are some important considerations when creating rewards for your backers:

Tiered reward structure:

Offering rewards at different contribution levels allows you to cater to a wider range of backers. Create a tiered structure with varying reward options, starting from lower-cost rewards for smaller contributions and escalating to more exclusive or high-value rewards for larger contributions. This gives backers the opportunity to choose a reward that aligns with their interests and budget.

Unique and personalized rewards:

Create rewards that are unique and relevant to your campaign. Consider offering limited-edition or one-of-a-kind items, exclusive experiences, or customized versions of your product. Personalized rewards make backers feel special and provide a sense of exclusivity, motivating them to contribute and be a part of your journey.

Early bird specials:

Include early bird rewards for the first backers who support your campaign. Early bird specials can be offered at a discounted price or include additional perks not available to later backers. This creates a sense of urgency and encourages early engagement and support for your campaign.

Milestone rewards:

Consider setting milestones for your campaign and offer additional rewards when specific funding targets are reached. Milestone rewards can include upgrades, stretch goals, or exclusive bonuses that are unlocked as your campaign progresses. This not only generates excitement but also keeps backers engaged and motivated to share your campaign with others.

Regular updates:

Throughout your campaign, provide regular updates to keep your backers informed about the progress of your project. Share behind-the-scenes images, videos, or production updates that give your backers an inside look at how their support is making an impact. Keeping backers engaged with timely and valuable updates helps maintain their enthusiasm and trust in your project.

Clear delivery timelines:

When offering rewards, be transparent and provide clear delivery timelines. Clearly communicate when backers can expect to receive their rewards and any potential factors that may impact the timing, such as production or shipping delays. Consistently update your backers on any changes to the delivery schedule to manage their expectations effectively.

Gratitude and appreciation:

Finally, express your gratitude and appreciation for your backers on Indiegogo. Thank them publicly through campaign updates, social media shoutouts, or personalized messages. Regularly engage with your backers, respond to their comments and messages, and make them feel like valued members of your campaign community.

By offering enticing and thoughtful rewards, communicating effectively, and expressing gratitude, you can create a positive and rewarding experience for your backers. This not only helps you secure their support but also establishes a loyal community around your project on Indiegogo.


Tips for a Successful Crowdfunding Campaign on Indiegogo

Launching a successful crowdfunding campaign on Indiegogo requires careful planning, effective execution, and continuous engagement with your audience. Here are some essential tips to help you maximize your chances of success:

1. Plan your campaign strategy:

Before launching your campaign, create a detailed plan that outlines your funding goal, target audience, marketing strategy, and timeline. Set clear objectives and establish a strategy for reaching and engaging with potential backers.

2. Build an engaged community:

Prioritize building an engaged community around your project before launching your campaign. Leverage social media, newsletters, and other channels to gather interested followers who are likely to support your campaign.

3. Create a compelling campaign page:

Your campaign page is your opportunity to captivate potential backers. Utilize high-quality images, videos, and engaging content to clearly communicate your project’s value and highlight the rewards backers will receive.

4. Generate buzz before launch:

Don’t wait until your campaign is live to start promoting it. Generate excitement and anticipation by teasing your campaign on social media, hosting a pre-launch event, or reaching out to influencers and media outlets for coverage.

5. Set an attainable funding goal:

Set a funding goal that is realistic and considerate of the size of your target audience. Aiming too high may discourage potential backers, while setting a goal too low may signal lack of confidence in your project. Research and analyze similar campaigns to gauge appropriate funding targets.

6. Offer compelling rewards:

Create enticing rewards that align with your project and provide value to your backers. Consider unique or personalized offerings to make your campaign stand out and motivate backers to support your project.

7. Engage with your backers:

Engage with your backers throughout your campaign. Respond to comments, answer questions, and provide regular updates to keep them informed about your progress. Encouraging a two-way conversation builds trust and strengthens your campaign community.

8. Leverage social media and networks:

Utilize social media platforms to promote your campaign and reach a wider audience. Leverage your personal and professional networks to spread the word and encourage others to share your campaign with their connections.

9. Collaborate with influencers:

Partner with influencers or relevant experts in your industry to amplify your campaign’s reach. Their support and endorsement can help boost your credibility and attract a larger audience.

10. Offer early bird specials and limited-edition perks:

Create a sense of urgency and exclusivity by offering early bird specials and limited-edition perks to encourage immediate support. Providing extra incentives for early backers can increase the momentum of your campaign.

11. Keep the momentum going:

Don’t let your campaign lose steam. Continuously promote and market your campaign, even after the initial excitement fades. Maintain regular communication and updates to keep your backers engaged and attract new supporters throughout the duration of your campaign.

12. Express gratitude and stay transparent:

Regularly express your gratitude to your backers and show appreciation for their support. Be transparent about the progress of your campaign, any challenges you face, and how their contributions are impacting your project. Building trust and fostering a positive relationship with your backers is key.

By implementing these tips, you can increase the chances of running a successful crowdfunding campaign on Indiegogo. Remember, dedication, effective communication, and genuine engagement with your audience are key factors in achieving your funding goals and turning your project into a reality.



Indiegogo offers an incredible opportunity for creators, entrepreneurs, and innovators to turn their dreams into reality through the power of crowdfunding. With its user-friendly platform, flexible funding options, and a supportive community, Indiegogo has become a go-to platform for individuals and organizations seeking financial support for their projects.

In this article, we have explored the various aspects of running a successful crowdfunding campaign on Indiegogo. From understanding the platform and its different campaign types to setting up your funding goal and managing funds and payments, each step is crucial in maximizing your chances of success.

We discussed the importance of creating a compelling campaign page, engaging with your audience, and offering enticing rewards to attract and retain backers. Moreover, we provided valuable tips on planning your campaign strategy, generating buzz before launch, and leveraging social media and networks to amplify your reach.

Throughout your Indiegogo campaign, continuous communication, transparency, and gratitude towards your backers are essential. By building a community around your project and expressing your appreciation, you can foster a loyal following that not only supports your current campaign but may also become advocates for your future endeavors.

Remember, running a successful crowdfunding campaign on Indiegogo requires perseverance, adaptability, and a genuine passion for your project. With careful planning, effective execution, and ongoing engagement with your audience, you can transform your ideas into reality, secure the necessary funds, and bring your vision to the world.

So, seize the opportunity, harness the power of crowdfunding on Indiegogo, and embark on your journey towards success. Your dreams are waiting to be realized, and Indiegogo is here to help you every step of the way.

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