If you are thinking for starting a crowdfunding campaign, then you must be well aware of all types of funding options available across the different White Label Crowdfunding Platforms so that you can decide which type of crowdfunding campaign you want to start as you may have come across the two terms “Fixed Funding (All Or Nothing)” and “Flexible Funding (Keep It All)”.
Recently, Indiegogo has established their position in the crowdfunding market by introducing the splendid masterstroke of flexible funding campaigns. It has been noticed lately that a dominant part of campaigns launched on Indiegogo are campaigns with the flexible funding option. However, this does not as a matter of course imply that it is simpler to succeed using a flexible funding campaign. Both the options possess great perks, but the key question for each campaign would be which option should it go with?
Let’s have a thorough understanding of both fixed and flexible funding options:
- Fixed Funding: With fundraising for Fixed Funding/ All Or Nothing crowdfunding campaign, you will only receive the amount that you raised if your fundraising goal in achieved before the predetermined time. If your campaign could not achieve the goal, then the entire funded amount is reimbursed to the backers. For instance, if your fundraising goal is $20,000 and you have raised only $18,000 by the end of the fixed time, you will not receive any funds and your backers will not have their credit cards charged.
- Flexible Funding: With Flexible Funding/ Keep It All crowdfunding campaigns, whether you meet the goal or not, you can receive all the amount that you have achieved throughout the duration of campaign. For instance, if your fundraising goal is $10,000 and you have raised $8,000 in the predetermined time period, then you are allowed to keep the $8,000 and the credit cards of your backers would be charged. In short, Flexible funding means you can keep all that is contributed regardless of whether or not the goal is met.
Advantages and Disadvantages of Fixed and Flexible Funding:
- Flexible funding is perfectly suited for certain types of campaigns especially true to campaigns meant to support a charitable cause.
- It is recommended that large non-scalable projects are more likely to be funded through the Fixed/All Or Nothing scheme.
- Flexible funding scheme represents less risk and less return for the entrepreneur.
- Fixed funding can be intimidating, if you do get funded, you actually have the resources you need to fulfill your idea the way you planned.
- When you choose flexible funding, it shows a lack of confidence to meet your goal, Backers will be more hesitate to support you, not knowing whether you will have the capital overall to produced the perk you chose.
At Fundraisingscript.com, we offer fully customized white label crowdfunding platform with fixed and flexible funding options. It is possible that you have a great idea in mind and it would be really successful with the help of our Crowdfunding Script.