Not sure how to fund your next project? Crowdfunding for creators means asking many supporters to chip in, usually online, so you can pay for the work without a single investor. Here’s how it works, what it costs and how to start.
| Item | Value |
|---|---|
| Kickstarter platform fee on a funded project | 5% of funds collected |
| Payment processing fee on Kickstarter (Stripe) | Roughly 3-5% |
| Kickstarter micropledge fee (pledges under $10) | 5% + $0.05 per pledge |
| Typical platform fee range across sites | 5% to 10% of money raised |
| Patreon platform fee | 10% of processed payments |
| Subscription-style platform fees | $25 to $180 per month or more |
These figures come from Kickstarter’s March 2024 fee guide and Shopify’s September 2026 fee comparison. Fees can change, so check the source before you rely on them.
What crowdfunding for creators means
Crowdfunding is a way to raise money for a project by inviting a large group of people to contribute, usually through an online platform. Instead of relying on one investor, lender or publisher, you go directly to the people who want your idea to exist, as Kickstarter’s guide for creators explains.
For artists, filmmakers, musicians, writers, designers and game makers, a campaign can do more than pay the bills for one project. It can help you test demand, find an audience and build a community around your work.
Crowdfunding is one funding route inside a much bigger shift in how independent makers earn a living. If that wider picture is new to you, read what is the creator economy for the background.
The four common types
As of Kickstarter’s September 2026 guide, there are four common types of crowdfunding:
- Reward-based: people pledge money, often in exchange for the thing being created, early access, a limited edition or a unique experience.
- Donation-based: people contribute without expecting anything in return, often for personal expenses, emergencies or charitable causes.
- Equity: people invest in a company in exchange for an ownership stake.
- Debt: people lend money with the expectation of repayment.
For a creative project, reward-based crowdfunding offers a way to fund the work without taking out a loan or giving investors ownership of it. Backing a project is not the same as investing: the same guide notes that backers don’t receive equity or ownership in the project.
Why creators choose it
- Ownership: as of that September 2026 guide, Kickstarter creators retain 100% ownership of their work, with no equity handed over and no loan to repay.
- Testing: a campaign can show whether people are willing to support an idea before you invest heavily in producing it.
- Audience: early supporters can become a community that follows your work and returns for whatever you make next.
- Direct connection: you take an idea straight to the people most likely to care about it.
How does a campaign run from idea to delivery?
If you want the full walkthrough, our explainer on how does crowdfunding work goes deeper. In short, Kickstarter’s guide says reward-based crowdfunding generally follows four steps.
- Create your project. Explain your idea, funding goal, timeline and how you’ll use the money, and add rewards at different pledge levels.
- Backers pledge. Once the campaign is live, people choose how much to pledge and may select a reward at a particular level.
- Reach your goal. If the goal is met by the deadline, the creator receives the funds, minus fees.
- Bring it to life. You manufacture, print, record, finish or ship what you promised, and keep backers informed.
Kickstarter uses an all-or-nothing model. If a project reaches its goal by the deadline, backers are charged and the creator receives the funds, minus applicable fees; if it doesn’t, no one is charged. Other platforms handle this differently, so check the model before you choose.
That last step is what separates crowdfunding from ordinary shopping. Backers aren’t buying something already on a shelf; they’re helping fund the making of something new, which is why steady updates matter.
Platforms often add phases around the live campaign. Indiegogo’s help page for creators describes an Upcoming phase, in which your project is visible and you build your audience before crowdfunding starts. It also lists an optional Late Pledge phase, which accepts new pledges and upgrades after the campaign without collecting shipping data or shipping fees.
Choosing a campaign type and platform
No single site suits every project. Kickstarter’s guide compares four platforms by type, best use and funding model, and the table below reproduces that comparison.
| Platform | Type | Best for | Funding model |
|---|---|---|---|
| Kickstarter | Reward-based | Creative projects | All-or-nothing |
| GoFundMe | Donation-based | Personal needs, emergencies and charitable causes | Flexible |
| Indiegogo | Reward-based | Products and technology | Funding options vary |
| Patreon | Membership | Ongoing creator work | Recurring support |
That comparison comes from Kickstarter’s own guide, so read it as one platform’s view and compare it with other sources. The same guide says the best platform depends on what you’re trying to fund.
If you’re making a defined thing with a start and an end, such as a book, album, game or film, reward-based crowdfunding is the usual starting point. If your work never really finishes, you may be better served by memberships, and our comparison of recurring crowdfunding vs one-time campaigns helps you weigh the two.
Illustrators and animators face the same choice between a defined project and ongoing work. In the comparison above, Kickstarter is listed for creative projects and Patreon for ongoing creator work with recurring support, and our digital art hub covers the medium itself.
What crowdfunding costs
Crowdfunding isn’t free, even when launching is. Kickstarter’s March 2024 fee guide says that if a project is successfully funded, Kickstarter collects a 5% fee from the funds collected, and its payment processor, Stripe, also collects a fee of roughly 3-5%. If a project does not reach its funding goal, no fees are collected.
The same guide describes a discounted micropledge fee of 5% + $0.05 per pledge for pledges under $10. It also notes that Kickstarter became a Public Benefit Corporation in 2015 and has used its fee model since 2009.
The fee types to look for
According to Shopify’s September 2026 comparison, these are the common fees and costs you may meet:
- Platform fee: pays the platform to host your campaign and provide tools.
- Subscription fee: a recurring charge for the platform’s tools.
- Recurring contribution fee: a percentage of each recurring membership payment.
- Payment processing fee: covers accepting cards and digital wallets.
- Currency conversion fee: applies when a backer pays in a different currency.
- Withdrawal or payout fee: taken when you move money to your bank.
Shopify says a platform fee is usually a percentage of the total money you raise, often between 5% and 10%. Subscription fees vary widely, from $25 to $180 per month or more. Its comparison table lists Patreon’s platform fee as 10% of processed payments.
Processing fees are often a percentage plus a fixed amount per payment, such as 3% plus 30¢. Shopify’s worked example for GoFundMe: if 100 supporters each contribute $100, a 2.9% plus 30¢ transaction fee on each donation leaves you $9,680 from $10,000, with $320 going in fees. For a side-by-side view, see our guide to crowdfunding platform fees.
Costs outside the platform
Kickstarter’s fee guide also points to costs that never appear on a platform statement:
- Staff and fulfillment: extra help, third-party logistics, packaging and tracking shipments.
- Taxes: creators may be responsible for taxes on their earnings, depending on location and business structure.
- Advertising: paid ads can raise visibility, but the return should justify the spend.
- Rewards: materials, production and shipping, which can be a significant expense for international shipments.
Build all of these into your budget before you pick a number to ask for.
How should you plan the campaign?
Kickstarter’s guide suggests getting clear about three things first: what you’re making, how much it will cost, and who will care about it. From there, you build the campaign, create rewards, and set a funding goal and timeline.
- Work backwards from your budget with our guide on how to set a crowdfunding goal.
- Explain the project clearly using our advice on how to write a crowdfunding campaign page.
- Choose rewards backers actually want with these crowdfunding reward ideas.
- Bring your existing audience along by reading how to promote a crowdfunding campaign.
Indiegogo’s creator guide adds a practical checklist. Before you start, it says you need a creator account, a project page draft with a basic description, images and rewards, and a plan for shipping, taxes and refunds. It also suggests testing the flow in tester mode and submitting the project for review when you are ready to go live.
Scale varies enormously. Shopify notes that Peak Design’s founder has raised more than $60 million through Kickstarter campaigns, which helped the company keep building without bringing on investors (see Shopify’s fee article). Treat that as an outlier, not a forecast for your own project.
Risks to budget for
Crowdfunding takes work. Shopify’s September 2026 article says it can take significant time and effort, and reaching your funding goal isn’t guaranteed. You’ll typically need to market your campaign, engage with backers and fulfil the rewards you promised.
Funding doesn’t remove the risk either. Kickstarter’s guide says even successfully funded projects can encounter production delays, rising costs and other unexpected challenges, so keep a cushion in your budget and tell backers early when something changes.
Some platforms build in a safety net. As described on Indiegogo’s help page, its Stable Pledge feature gives affected backers two weeks to request a full refund if the estimated production or shipping cost increases by more than 10% after crowdfunding ends. Creators choose whether to use it.
Taxes deserve their own check. Because rules depend on where you live and how your business is set up, ask an accountant before you launch rather than after the money arrives.
Frequently asked questions
Is crowdfunding free for creators?
Show answer
Not usually. As of Kickstarter’s March 2024 fee guide, a funded project pays a platform fee plus payment processing, though no fees are collected if the goal isn’t reached. Other platforms charge subscriptions or other fees instead.
Do backers get a share of my work?
Show answer
In reward-based crowdfunding, no. Kickstarter’s guide says backers don’t receive equity or ownership in the project. Equity crowdfunding is a different model, in which people invest in exchange for an ownership stake.
What happens if I miss my funding goal?
Show answer
It depends on the platform’s funding model. On Kickstarter’s all-or-nothing model, no one is charged if the goal isn’t reached by the deadline. Indiegogo’s help page likewise says that when a project didn’t reach its funding goal, backers aren’t charged.
Which type of crowdfunding suits a creative project?
Show answer
Kickstarter’s guide points creators with a defined project toward reward-based crowdfunding, and membership platforms toward ongoing work. Donation-based sites are described as better for personal needs, emergencies and charitable causes.
