IndieGoGo Fees: What You Need to Know

When you're gearing up to launch a campaign on IndieGoGo, understanding the fee structure is crucial for your financial planning. IndieGoGo charges a 5% fee on all funds raised, and this can increase to 8% if your campaign originates elsewhere. Additionally, don't overlook the transaction fees from payment processors and potential transfer fees when moving funds to your bank account. Knowing these fees ahead of time will help you set realistic funding goals and prepare for any extra costs. Want to ensure your campaign's financial success while navigating these fees? Let's break it down further.

Main Points

• IndieGoGo charges a 5% platform fee on all funds raised for campaigns.
• Each contribution incurs additional transaction fees, which vary by location, currency, and transaction type.
• Transfer fees and potential bank charges apply when funds are sent to your bank account.
• Fixed campaigns and InDemand programs also incur a 5% platform fee.
• Campaigns originating elsewhere face an 8% platform fee from IndieGoGo.

Platform Fees

Indiegogo charges a 5% platform fee on all funds raised for campaigns, regardless of meeting the goal. This fee is a necessary cost for leveraging Indiegogo's crowdfunding services, which help reach potential backers and secure funding.

Fixed campaigns, where funds are collected only if the goal is met, also incur the same 5% fee.

The InDemand program, allowing continued fundraising post-campaign, maintains the 5% platform fee. If a campaign originated elsewhere, the fee increases to 8%, reflecting the integration cost.

Consider these fees when planning campaigns. The platform fee is a crucial part of the overall cost structure, instrumental for tapping into Indiegogo's extensive network.

Understanding this fee structure aids in planning funding goals and managing raised funds effectively.

Transaction Fees

Transaction fees are a crucial consideration when planning your campaign. Each contribution incurs a fee from the payment processor, varying by location and currency. Understanding these fees helps you budget accurately. For example, credit card contributions might have extra charges, especially for international transactions, due to different rates applied by credit card networks and processors like Stripe.

Stripe's Terms of Use outline these fees in detail. Keep in mind that fees can accumulate quickly, particularly with contributions from multiple countries, allowing you to set more accurate funding goals.

Here's a breakdown of the fees:

Transaction Type	Fee Rate	Extra Fees for International Contributions
Local Credit Card	2.9% + $0.30	None
Non-local Credit Card	2.9% + $0.30	Additional 1%
International Credit Card	3.9% + $0.30	Additional 1%
Currency Conversion	Varies by Currency	Yes
Disbursements (excluding transfer fees)	Varies by Bank	Yes

Transfer Fees

Transfer fees, also known as Bank Delivery Fees, apply when funds are sent to your bank account. When you receive funds from IndieGoGo, your bank could impose additional charges like currency conversion or wire fees. These costs can accumulate quickly. Understanding these fees ensures you're not caught off guard.

Contact your bank before providing your account details to IndieGoGo. Clarify any potential charges. This step keeps you informed about any transfer fees you might face when fund disbursement occurs. IndieGoGo won't cover these fees, so it's your responsibility to be prepared.

For those who value financial control, knowing these details can save you from unexpected expenses. Whether it's a currency conversion fee or a wire fee, preparation helps you maintain financial stability. Campaigns that don't meet their funding goals don't incur fees, and backers receive refunds.

Stay informed and you'll navigate IndieGoGo's financial landscape with confidence and ease.

Currency and Fees Table

Understanding IndieGoGo fees for different currencies is key to managing your campaign finances. IndieGoGo charges a 3% fee plus $0.20 for USD transactions with a US bank account, applicable to both Fixed Funding and Flexible Funding campaigns.

For campaigns involving AUD, CAD, or EUR, IndieGoGo imposes fixed transfer fees. Higher percentage-based fees apply to transactions in HKD and JPY. PLN, SEK, and NOK have their own specific transaction fee structures on the platform.

Knowing these details helps you plan better and account for all potential costs. If your campaign reaches its funding goal, the transaction fees will vary depending on the currency.

IndieGoGo's fee structure accommodates various international currencies, making it essential for campaign owners to understand the exact fees they'll incur. Whether using Fixed Funding or Flexible Funding, fees will impact your final raised amount.

Staying informed allows you to navigate the platform better and maximize your campaign's success.

Additional Costs

Budgeting for additional costs ensures your IndieGoGo campaign's success. Crowdfunding campaigns must consider fees beyond the platform fee and processing fees. These extra expenses can greatly impact your budget and funding goals.

First, the platform fee is a constant 5% for campaigns, including those using the InDemand program. This fee applies to funds raised during the campaign and while it's in-demand. Processing fees for payments will further reduce the amount of funds received.

Second, budget for marketing to maximize your campaign's visibility. IndieGoGo offers marketing assistance and campaign promotion services, but these come with extra costs. Properly planning for these expenses enhances your campaign's reach and success.

Third, consider shipping and manufacturing costs. These can add up quickly, especially if you're offering physical rewards. Accurately estimating these expenses ensures financial stability once your campaign ends.

Frequently Asked Questions

What Fees Does Indiegogo Charge?

You'll get charged a 5% platform fee on funds raised and 5% more if you're in the InDemand program. For non-Indiegogo campaigns, it's 8%. Remember, third-party payment processing fees also apply, varying by location.

Do You Have to Pay Taxes on Indiegogo?

Only 40% of campaign creators report their earnings accurately. You're responsible for paying taxes on your IndieGoGo earnings, so consult a tax professional. IndieGoGo might send you a 1099-K if you meet specific thresholds.

Why Is Indiegogo Asking for a Tip?

Indiegogo's asking for a tip to support the platform's maintenance and improvements. It's optional, so you've got the freedom to choose. Your tip helps them keep the platform running smoothly without affecting campaign funds.

Does Indiegogo Charge Immediately?

Nope, Indiegogo doesn't hit you with fees right away. They take their cut from the funds you raise after your campaign ends. You'll get the net amount, with fees and payment processing costs already deducted.

Conclusion

Remember, when launching your IndieGoGo campaign, you need to account for platform fees (5% or 8%), transaction fees, and transfer fees. These costs can add up faster than you can say 'Beam me up, Scotty!' So, set realistic funding goals and plan for these extra expenses.

By understanding all the fees involved, you'll ensure a smoother campaign experience and avoid any nasty surprises. In short, be prepared, and you'll be on track for crowdfunding success.