CrowdMall vs. Kickstarter: A Matchup Review for Creators and Innovators
- The core USPs for these platforms are different: Kickstarter enables project funding; CrowdMall qualifies idea validation
- CrowdMall attracts early adopters to pre-order cool, innovative products whereas Kickstarter attracts generic contributors to back creative projects
- Project creators on CrowdMall get access to demographic data to identify core customer personas whereas project owners on Kickstarter get access to contributors contact information
Crowdfunding has revolutionized the way creators bring their ideas to life, providing a platform for innovators to connect with like-minded individuals and secure funding for their projects. Two key players in this ideas space are CrowdMall and Kickstarter.
While both platforms share a common goal of helping creators launch new products and ideas, their approach and offerings differ in several ways. This blog post provides a comprehensive comparison of CrowdMall and Kickstarter, highlighting their unique features and benefits to help you make an informed decision about which platform is best suited to your current needs.
Core focus: idea validation vs. project funding
CrowdMall is designed for early adopters, innovators, and creators looking to validate their product ideas and achieve market-fit by pre-selling limited edition runs of their products. The platform focuses on helping creators gather valuable data and marketing insights about their target audience and product-market fit before investing significant resources into manufacturing.
Kickstarter, on the other hand, is a crowdfunding platform that allows creators to raise funds for their projects by offering rewards to backers in exchange for financial support. Kickstarter's primary focus is to help creators secure the necessary funding to bring their projects to life, rather than specifically targeting the idea validation process.
A creator with a new, innovative smartwatch concept may choose CrowdMall to pre-sell a limited number of devices to early adopters and gather feedback to refine the product before mass production. Alternatively, the same creator might opt for Kickstarter to raise funds for manufacturing, marketing, and other expenses associated with launching the product.
Target audience: early adopters vs. general backers
CrowdMall caters specifically to early adopters, individuals who are eager to be among the first to get their hands on the latest innovations and limited edition products. This focus on early adopters allows creators to tap into a niche audience that is more likely to provide valuable feedback and help validate their product ideas.
Kickstarter, while also attracting early adopters, has a broader target audience that includes individuals who are interested in supporting creative projects and receiving unique rewards. The backers on Kickstarter may not necessarily be focused on providing feedback or helping creators validate their ideas but are more interested in the rewards they receive for their financial support.
A creator launching a high-tech, cutting-edge drone may find CrowdMall's early adopter audience more valuable for gathering feedback and validating their product idea. In contrast, a creator launching a board game might find Kickstarter's diverse backer community more suitable for raising funds and generating interest in their project.
Creator support and resources
CrowdMall offers a suite of resources and support for creators, including access to a network of experienced mentors and experts in various fields such as product development, marketing, and e-commerce. This support system helps creators navigate the challenges of launching a new product and ensures they have the necessary tools and guidance to achieve success.
Kickstarter also provides resources and support for creators, including educational materials, webinars, and a dedicated support team. However, the platform does not offer the same level of mentorship and expert guidance as CrowdMall.
A creator with limited experience in marketing and product development may benefit from CrowdMall's mentorship program and expert network, receiving tailored advice and guidance on their product launch journey. In contrast, a creator with prior experience in launching projects might find Kickstarter's resources and support sufficient for their needs.
Business model: pre-orders vs. all-or-nothing funding
CrowdMall operates on a pre-order model, where creators can offer limited edition runs of their products to early adopters. The revenue generated from these pre-orders can be used to fund further manufacturing runs. This model allows creators to gauge market interest and validate their product ideas without the pressure of meeting a specific funding goal.
Kickstarter employs an all-or-nothing funding model, where creators set a funding goal that must be met within a specified timeframe for the project to receive any funds. If the funding goal is not reached, the project is considered unsuccessful, and backers are not charged. This model can create a sense of urgency for both creators and backers, but it also comes with the risk of receiving no funds if the goal is not met.
A creator with a groundbreaking kitchen gadget might prefer CrowdMall's pre-order model to test the waters and validate their product without the pressure of meeting a funding goal. On the other hand, a creator looking to launch a large-scale production of a documentary film may opt for Kickstarter's all-or-nothing model to ensure they have the necessary funds to complete the project.
Fees and payment processing
Both CrowdMall and Kickstarter charge fees for their services, but the fee structures differ between the platforms.
CrowdMall charges a flat fee for listing a product on the platform, as well as a percentage of the revenue generated from pre-orders. This fee structure ensures creators receive a majority of the funds generated from their pre-orders, with CrowdMall taking a portion to support the platform's operations.
Kickstarter charges a percentage fee based on the total funds raised for a successful project. Additionally, payment processing fees apply to each transaction. This fee structure means that creators only pay fees if their project is successful in reaching its funding goal.
A creator launching a product with a high manufacturing cost may find CrowdMall's fee structure more appealing, as it allows them to retain a larger portion of the pre-order revenue. Conversely, a creator launching a low-cost project with a modest funding goal might find Kickstarter's fee structure more attractive, as they only pay fees if the project is successful.
International availability and reach
CrowdMall, while primarily focused on the United States market (at launch), allows creators from around the world to sell their products to customers based in America. This global reach provides creators with the opportunity to tap into the lucrative US market and validate their product ideas with a diverse audience.
Kickstarter is available in multiple countries around the world, allowing creators to launch projects and reach backers in various regions. This international availability provides creators with the flexibility to choose the most suitable market for their project and access a global network of backers.
A creator based in Europe looking to test their product's appeal in the US market may find CrowdMall's focus on the US audience advantageous. In contrast, a creator based in Asia looking to reach backers in multiple countries might prefer Kickstarter's broader international availability.
CrowdMall and Kickstarter both offer unique benefits and opportunities for creators looking to launch new products and ideas. While CrowdMall focuses on idea validation and targeting early adopters, Kickstarter emphasizes project funding and has a broader backer community.
The choice between the two platforms will ultimately depend on the creator's specific goals, target audience, and the level of support and resources they require.
By understanding the key differences between CrowdMall and Kickstarter, creators can make an informed decision about which platform is best suited to their needs, maximizing their chances of success and achieving their product launch goals.