It’s not uncommon for new entrepreneurs to seek financial aid in turning their creative projects into functional and sustainable. As a matter of fact, there are business incubators around the world focused on helping startups! And while incubators have been of great help, there are still those who opted for the traditional method of crowdfunding or fundraisers.
One of the most commonly used fundraising platforms is GoFundMe! Granted, it is the leading crowdfunding site of today, but despite this, there are brands who think it’s the most appropriate platform for growing businesses.
With this in mind, Creatitive has created a list of fundraising sites like GoFundMe! But before anything else, let’s first discuss the site’s advantages and disadvantages!
Pros And Cons Of GoFundMe
Being deemed as the leading fundraising platform of today, GoFundMe surely has great advantages. But at the same time, the site has significant disadvantages budding entrepreneurs should keep in mind!
One of the main reasons why the site has grown to be the leading crowdfunding platform is safety. The site secures that all the donations are secured during credit card processing. Should any incident happen during the payment process, it guarantees to refund any discrepancy!
Another feature that makes crowdfunding campaigns irresistible for most entrepreneurs is flexible withdrawal. For instance, your business needs to shell out installment payments for your storefront or other needs.
The platform allows benefactors to withdraw any amount needed even if the campaign is still running!
No Sneaky Charges
Entrepreneurs openly thank the generosity of their donors and often do their best to avoid causing any other inconveniences. Thankfully, they doesn’t charge donors any unseen fees. The platform prides itself for being transparent with every fee they charge!
There are certain platforms available today that have ultimatums for every campaign they have. If personal campaigns are not able to reach their goals, they won’t be able to claim the proceeds.
Fortunately enough for the platform’s members, their campaigns don’t have this restriction. It allows them to rest easy even if they underperform.
A commonly asked question when it comes to the platform’s campaigns is how much does Go Fund Me charge? Platform and processing fees are pretty common for fundraising platforms but GoFundMe impose other fees.
When combined, the platform charges 7.9% of proceeds alongside a $0.30 deduction per donation. This means there would be a 5% platform fee alongside a $0.30 processing fees. Keep in mind that these extra fees can certainly add up depending on the amount you raise.
Requires More Tasks
Taking a look at some of the more successful campaigns held in the platform, it can be observed that benefactors did a lot of creative framing and marketing on their part.
While it may be true that setting up campaigns on the site is relatively more user-friendly in comparison to other fundraising platforms, your business might end up doing a lot of marketing and reaching out in order to gain great proceeds.
As mentioned earlier, GoFundMe’s fundraiser campaigns don’t really have set goals. Hence, there’s a high chance businesses will have a harder time securing a lot of funding.
Great Alternatives Go Fund Me
Making note of these advantages and disadvantages before starting a campaign is a recommended step by a lot of experts. Think about the risks and should you come to the conclusion that it’s not for your business, Creatitive has a few alternatives to suggest!
If your business promises to create physical products, Kickstarter is a great option. The platform charges a flat 5 percent hosting fee and a 3 percent + $0.20 per contribution. But the platform lets you reward people who contribute with products, discounts, and even just your thanks.
You set your goal, people contribute, and if you raise the goal, you get the money. If not, contributors are refunded their contributions. It’s the most equitable among sites like GoFundMe.
If your business involves constantly producing new content, Patreon is a great option. Fundraising campaigns last as long as you want them to and you get the money as it comes in. You will be subject to a 5 percent platform fee and a 5 percent payment processing fee for contributions. But for some, the flexibility of the platform makes it worthwhile.
If you’re looking for a way to raise money for your business without having to pay a platform fee or per-contribution fee, Fundable is a great option. This platform charges all businesses a monthly fee of $179. Like Kickstarter, it’s an all-or-nothing platform, so use it with caution. If your campaign fails, you’ll still have to pay the $179 monthly fee.
Creating Your Own Crowdfunding Platform
Admittedly, the idea of creating your own platform can be pretty scary but it definitely offers great advantages that’s worth the risk!
For one, having your own system helps simplify business operations and other administrative tasks! When you’ve built a platform that carries the same workflow as you, there’s no need for you to learn about GoFundMe from the start to finish.
Second, it helps you control your spending better! While it may be true that the platform ensures they don’t charge hidden fees, they still ask for a portion of proceeds. By investing on your own platform, you no longer have to worry about what your actual proceeds will be.
Ultimately, creating a crowdfunding platform can be pretty complicated. Luckily, there are agencies like Creatitive more than willing to help businesses out! As an organization that started small, we understand how hard it is to grow something from the ground up. Hence, we’re offering cost-effective solutions for budding entrepreneurs!
Contact Us for More Information
If you’re looking to grow your business either with sites like GoFundMe, you’ll still need a good marketing strategy to make the most of the process. Contact us for a free quote today.