The platform you choose shapes a crowdfunding campaign more than most founders expect. It decides what you can offer backers, what you pay, when you receive the money and who sees your campaign. Compare platforms on these five points before you commit. For the list of platforms operating locally, see our directory of crowdfunding platforms in South Africa.
1. The model
Rewards platforms give backers a product or perk. Donation platforms give nothing back. Investment and purchase-order models give backers a financial return, and bring regulation with them. Choose the model first, because it narrows the field to one or two platforms.
2. Fees
Add up the platform commission, payment processing fees and any fee for failed campaigns. A few percentage points on a large target is real money, so build the full cost into the amount you raise.
3. Payout rules
Some platforms are all-or-nothing: if you miss the target, backers are refunded and you receive nothing. Others let you keep whatever you raise. All-or-nothing campaigns often raise more because backers know the project only proceeds if it is fully funded, but they carry more risk. Also check how long payouts take after the campaign ends.
4. Audience
A platform with an active community of backers in your category can bring you supporters you would never reach alone. Most money in most campaigns still comes from the founder’s own network, though, so treat the platform’s audience as a bonus.
5. Support and tools
Look at campaign coaching, page-building tools, update features and how quickly the platform answers questions. For a first campaign, good support makes a real difference.
A note on regulation
If backers receive shares, loans or a share of profits, the offer may involve regulated financial activity. Check that the platform complies with the rules of the Financial Sector Conduct Authority and the Companies Act before you raise money this way.
Frequently asked questions
What is the most important factor when choosing a platform?
The model, because it determines what you can offer backers and which platforms are relevant at all.
Is all-or-nothing better than keep-what-you-raise?
All-or-nothing encourages backers to commit but carries the risk of receiving nothing. Keep-what-you-raise suits projects that can proceed at a smaller scale.
Can the platform bring me backers?
Some, but most successful campaigns are driven by the founder’s own audience.
How are platform fees charged?
Usually as a percentage of funds raised, plus payment processing fees.
Where can I learn how crowdfunding works?
Our guide to crowdfunding in South Africa explains the models and the legal side.