A Comprehensive Guide of the Top 20 Crowdfunding Sites
Before answering that question, there are a few things to consider—including site features, community, and fee structures. Before we dive into the best crowdfunding sites, we list five key considerations to keep in mind as you do your research. Our list of crowdfunding sites will no doubt give you confidence when deciding which platform to use.
Compare crowdfunding sites: 5 key services to look for
If you’re wondering “How does crowdfunding work?” the concept is fairly simple: Someone starts an online fundraiser to meet a financial need, and then their network of friends and family members donate to their cause. From there, the organizer withdraws the donations and they are sent to their bank account. Below, we list the most important services to watch for in any online fundraising site.
Customer support
Does the site offer email support, live chat, or a phone helpline? Remember that your friends and family members will be donating money, and they might need help, too. It’s important for the people behind the site to be honest, responsible, available, and to work towards the highest level of customer satisfaction.
Crowdfunding fees comparison
A platform fee is when a crowdfunding site takes a percentage of all the money you raise through your fundraiser. Typically, crowdfunding platform fees range from 5% to 12%. Look out for punitive fee structures. Some platforms increase fees if you don’t meet your goal. Others have an all-or-nothing model, meaning you only receive the money based on whether or not you meet or exceed your goal.
Brand recognition and trust
Another important thing to look for in crowdfunding websites is a known name. When a person is familiar with a company, they’re more likely to use their product in the future. This also ties into brand trust. If people have confidence in a company, that means the audience has good experiences with the product or service. It also means that the company is associated with positive traits and characteristics such as honesty.