- Model type
- Fund type
- Maximum allowed raise
Kickstarter has a donation/reward model type. Backers (donators) that support a project get an inside look at the creative process, and also get to choose from a variety of unique rewards offered by the project creator. Rewards vary from project to project, but often include a copy of what is being produced (CD, DVD, book, etc.) or an experience unique to the project, like meeting the creator or getting producer credits. Project creators keep 100% ownership of their work, and being a rewards model, Kickstarter cannot be used to offer equity, financial returns, or to solicit loans. A Rewards type means artists or creatives can retain full ownership of their project (or business).
If your project is successfully funded, KickStarter will apply a 5% fee to the total amount of funds raised and Stripe, their new payments processor, will apply credit card processing fees of 3% + $0.20 per pledge. Pledges under $10 have a discounted 'micropledge' fee of 5% + $0.05 per pledge.
Since KickStarter offers an All or Nothing funding model, there is a 0% non-completion fee. This is due to Kickstarter not charging donators anything if you do not complete your campaign. Some crowdfunding companies may charge you a fee for All or Nothing for whatever reason, but Kickstarter's 5% fee is standard in the crowdfunding industry, although it's on the higher end (typical fees are 3-5%). Not having non-complete fees lessens the financial burden for many "starving artists" trying to raise funds. (More of a burden is Stripe's deductions per transaction.)
Kickstarter offers an All-or-Nothing fund type. While that may be discouraging for some potential users, this fund type can actually be beneficial in this sort of situation. For example, say a project reaches $1,000 of its $5,000 goal. An All-or-Nothing fund type ensures that backers won't be expecting you to use $1,000 to provide rewards on a project intended to earn $5,000. It's helpful for backers, too, in that they can be sure their money is helping the creator to make actual progress on their project.
Maximum Allowed Raise
Kickstarter allows project creators to determine what their project's funding goal is. This is beneficial for those who have a large goal that would exceed the maximum funding limit of other crowdfunding sites.
At KickStarter, every project creator sets their project's deadline. This makes raising campaign funds very flexible and conducive to the best interests of the person raising money. Many crowdfunding sites have a 30, 45 or 60- day deadline, which may not be a good fit for the type of campaign that person is raising.