IndieGoGo will be making a bold move by expanding beyond finite crowdfunding projects to hosting ongoing crowdfunded projects with no end date.
It was reported by Techcrunch today that the company is launching an offshoot of its regular crowdfunding called “Forever Funding” which will allow campaign creators to continue to raise money indefinitely, instead of halting on the end date. This would make IndieGoGo the only well-known crowdfunder allowing this - Kickstarter, IndieGoGo’s main competitor does not currently have this option.
The “Forever Funding” option could potentially work to cover recurring maintenance costs with organisations, or buoy ones that are looking for ongoing interest.
IndieGoGo already distinguished itself from Kickstarter by allowing campaign creators the option to keep what they had raised, even if they did not reach their ‘goal’, albeit at a higher fee. If you raise your goal amount on IndieGoGo, you get charged a 4% commission fee, and if you don’t hit the target, they will charge 9%, if you have opted for the ‘Flexible Funding’ option. Kickstarter only allows you to keep the money if you hit your target, and then takes a 5% cut.
The ‘Forever Funding’ option is a risk for IndieGoGo. It’s difficult to know whether ventures would be able to sustain interest in their projects long-term, without the huge incentive of an urgent finishing date. IndieGoGo will also have to watch over campaigns to make sure they legitimate, so that their community of patrons avoid getting scammed. Either way, it is an interesting development, and IndieGoGo’s risk might just pay off.
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