INDIEGOGO EXPLAINED

We thought it would be helpful for anyone who is new to the idea of Indiegogo, for us to explain what it is and how it works and hopefully ease any confusion.


Indiegogo is a crowdfunding platform, in essence this means that rather than seeking venture capital and giving away a percentage of the business, start-ups can get funding from a large group of "backers" who pre-order the product. This process has a few benefits, first of all, it provides the start-up with the funds needed to start production without them having to give up control of the company. Secondly, it allows backers to get the product at a heavily reduced price and before it is available to anyone else. Finally, it allows companies to gauge demand for their product and thus reduce waste manufacturing.


Indiegogo Campaign Basics:


The goal - The campaign goal is set by the creator and is the amount of money that needs to be raised through pre-orders for production to go ahead. For us, this is £50,000 and is the amount needed to do a production run without us making a loss.


The Perk - This is Indiegogo's term for item you will receive in return for backing a campaign.


When you are charged - Backers are only charged once the campaign has come to a close and only if it reached it's target. There is no scenario where you are charged and the company is left not having the funds to go ahead with production.


For official answers to your questions, Indiegogo themselves offer some very useful insights here.


If you're curious as to why we are using Indiegog to sell our poles it might be worth while reading one of our early articles "Why we're using Indiegogo".

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