RocketHub

Author: Kaitlyn Short

The team at RocketHub wants users to have a successful crowdfunding experience. They see themselves as partners for each user, which is why they design everything to help individuals achieve their goals. The site, systems, and support are all developed to offer the most assistance for users. Thousands of artists, scientists, entrepreneurs, and social leaders have raised millions of dollars among the RocketHub community.

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The Good

• Model type
• Fund type
• Maximum allowed raise
• Deadlines

Model Type

RocketHub offers a Reward (or Goods) crowdfunding model. This feature makes them stand out from the competition in the crowdfunding market because some funding is better than no funding for new first-time fundraisers. So if you raise $10,000, you get to keep the $10,000 (after fees-see next section for details). Detailed, simple charts are provided to assist users with designing the perfect campaign. These tools help individuals select a logical length to run their campaign-as well as provide a good idea of how much time per day their campaign will require of them. For example, organizers hoping to earn between $1,000 to $10,000 will likely need 40-200 contributors to reach that goal. RocketHub suggests 30-45 days to run the campaign with approximately 15 minutes to two hours a day for the organizer to actually manage the campaign.

Fund Type

RocketHub allows its fundraisers to keep what they raised. This is great for the average entrepreneur, business and individual who don't have a lot of fundraising savvy or financial connections. So if they fall short of their specified monetary goal, they still get to keep the amount of funding they have received from campaign donors. RocketHub accepts all major credit and debit cards through an international merchant. This ensures most people who want to donate will not be hindered because they don't have Paypal or a certain payment vehicle.

Maximum Allowed Raise

Unlike many crowdfunding sites, there is no cap or maximum amount that RocketHub will let you raise. A funding monetary goal can be as much as $100,000 or more.

Deadlines

In terms of campaign length, RocketHub allows fundraisers a minimum of 30 days and a maximum of 75 days to complete a campaign. This is great for those needing more time to raise campaign awareness-especially if they are raising monies in the six-figure range or higher. Some of the top crowdfunding sites only offer up to 60 days. One unique feature RocketHub offers is the chance to receive on-air exposure on the Ovation cable network's Creative Studio showcase, which raised over $320, 000 in crowdfunding money. With celebrity investors such as will.i.am and the i.am.angel Foundation, this cable network has committed significant funds to support RocketHub's art and music campaigns. This is the first major television network to both fund and feature select crowdfunding projects, reaching more than 100 million homes, giving crowdfunders an incredible opportunity to receive some serious exposure.

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The Bad

• Fees
• Receiving funds
• Administrative work options

Fees

After a campaign is completed, RocketHub's transaction and processing fees apply, These fees are automatically deducted from the final amount. Successful campaigns are charged a 4% commission fee plus a 4% credit card processing fee. The non-completion fee (if someone fails to complete their campaign) is 8% of the monies raised plus a 4% credit processing fee. This is in addition to the fees for campaigns that did not reach their goal. While the fees associated with reaching a goal with RocketHub are average, their partial fees are quite high. Most crowdfunding sites either charge a transaction fee OR processing fee-not both. Furthermore, they are one of the only crowdfunding sites to charge a partial fee at all. In the event that a user fails to meet a goal, that user will be charged an 8% commission fee + 4% payment processing fee. That's a high price to pay in fees!

Receiving Funds

Many crowdfunding sites deliver funds more quickly than RocketHub does. With some platforms disbursing donations immediately or within 48-hours, the 5-10 day waiting period for RocketHub users is less than appealing. RocketHub keeps the funds raised during a campaign in a separate US bank holdings account. Once the campaign ends, the money is transferred to the fundraiser through check or digital payment. RocketHub processes payments on the first Friday following the completion of each project, taking on average 5 to 10 business days for you to receive your funds.

Administrative Work Options

RocketHub does not offer administrative work options. They offer what they call their "Success School". This is their online educational class to teach those preparing to launch a campaign the tools for a successful crowdfunding campaign. The good part is that it's free to download right on their website. RocketHub also offers an exhaustive Q&A (Questions and Answer) page on their website. It covers just about every topic imaginable concerning how to start a campaign, how to market a successful campaign to tips on managing your team and project leaders. They also answer common questions on payment methods along with technical questions on taxes, etc. While there are crowdfunding sites out there that do offer administrative options such as automated emails and project management, RocketHub's approach is more "DIY" (Do it Yourself). They focus on providing as many details as possible for people to navigate fundraising themselves. For instance, you have to manually send out emails to your donators. For the high amount of money RocketHub takes out of the total funds raised, they should at least provide some administrative work options. On this note, anyone considering donating to a RocketHub campaign should be aware that RocketHub does not vet anyone who uses their platform to raise funds. Any donations are made at your own risk.

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The Bottom Line

RocketHub makes it easy to join and set up a campaign without a lot of fuss. You are, however, on your own managing the campaign. RocketHub only provides tools and guides to help you do your own marketing and administrative tasks. Although the (possible) on-air exposure with Ovation is an enticing plus for artists and musicians, this site is simply more expensive than many other crowdfunding platforms. There are other crowdfunding options available without a commission fee or a fee for not completing a campaign.