06 Nov Can Indiegogo Be Trusted? How Trust Affects Campaigns & Backer Confidence
Can Indiegogo be trusted? I was once asked this question by an eager entrepreneur who wanted to launch his campaign on Indiegogo.
I was pleasantly surprised he was concerned with the trust factor because founders usually think much of it. It’s the backers who are mostly concerned (rightfully so) and so it prompted me to give up an answer that I’ll share with you today.
Why Trust is an Issue with Indiegogo
Unlike Kickstarter, Indiegogo does not have a rigorous approval process. This means it’s an open platform where anyone can start a project and there is no manual review process.
Indiegogo is more of a crowdfunding marketplace. And when there’s a marketplace, there are all types of people coming in.
Backers are generally warier of Indiegogo than they are of Kickstarter, however, that does not mean Indiegogo does not make an effective crowdfunding platform.
In fact, it is often preferred by campaigners who want an easy entry and do not want to go through an approval process for whatever reason.
The only caveat though is you got to put in the extra work to earn customer trust. There have been many scams on the platform so unless you have strong evidence (in the form of verifiable reviews, prototypes, reports or influencer backup), you’ll have a hard time gaining backers trust.
What are Indiegogo’s Trust Policies?
Simply put, evaluating the feasibility of a project is on backers. While the team does not manually review every project, it does investigate feedback and concerns from community and partners.
Indiegogo also keeps it realistic by stating, ‘With crowdfunding, there are always risks, so Indiegogo does not guarantee that contributions will be used as promised, that campaign owners will deliver perks, or that campaigns will achieve their goals…. To that end, Indiegogo does not resolve disputes, nor do we offer refunds once the funds have been disbursed.’
While Indiegogo should have a review mechanism to fight off spam, it’s not a sustainable model for a platform that aims to be an open marketplace.
So for entrepreneurs as well as for backers, you will need to work extra hard to be successful on Indiegogo.
The point is, should you?
Is it worth it to spend so much time and effort on Indiegogo?
Why Choose Indiegogo for Your Crowdfunding?
For some people, Indiegogo’s model has a few benefits that do make it worth it.
Some of those are:
- Flexible Funding: Unlike Kickstarter, Indiegogo does not operate under an All or Nothing model. This means even if you don’t fulfill your funding goal, you can still withdraw the funding you’ve received.
- A Chance to Stand Out of the Crowd: Because most campaigns on Indiegogo are incomplete or poorly executed, those with a strong execution plan can find plenty of success. The only condition? You need to convince the audience that you’re legitimate & will deliver on your promise.
- Other Additional Benefits: Indiegogo allows you to continue to raise money even after you’ve done a successful fundraiser. With the Indiegogo InDemand option, you’ll be able to continue to raise money from website visitors. Most Kickstarter campaigns transition over to Indiegogo after their successful fund.
- A True Marketplace: Almost anyone can launch an Indiegogo campaign for any purpose. Charity, business, tech, films, innovative projects, personal projects, creative projects – it’s like a shopping place for those interested in cool stuff. The chances of succeeding in a marketplace is far more than in a controlled platform.
Check out this video to know more about Kickstarter vs Indiegogo.
How Can Campaign Founders Build Trust on Indiegogo
There are three simple things you can do.
- Give them Accurate Information: Don’t hold back on information. Let them know how your product works. Share research reports. Share beta user feedback. Share testimonials. Share videos of your teams at work. Share insights. Share prototypes. The more information you give, the higher the legitimacy of your project.
- Engage with the audience: Communicate. Communicate. I can’t stress this enough. Answer questions. Share updates. Tell them what you’re working on. Show that you’re actively involved in your project. Engaging with the audience and keeping their interest will help your post-campaign too, especially if you’re planning to continue fundraising.
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- Build a community: Whether you’re crowdfunding on Indiegogo or Kickstarter, you need the power of a community to succeed with your funding goal. It takes building a strong community and email list for your campaign to see success. Without a community, your campaign will not come off as trustworthy.
To Conclude – You Can Trust Indiegogo But You Got to Do the Work
Entrepreneurs must put in the work to earn trust. Backers are rightfully wary of Indiegogo, but they know the nature of the platform and are also able to detect campaigns that are not trustworthy. Once you earn the audience’s trust, it’s easier to succeed on Indiegogo even after a successful fund-raiser.
Get in touch and see how we can help you succeed on Indiegogo.