In our previous offering, we talked about the basic features crowdfunding websites should have. In this blog, we focus on the costs of building a crowdfunding website. Our feature will give you a comprehensive understanding of how much it will cost for you to build a crowdfunding platform. The costs may vary but it certainly gives a close to the real picture of the expected budget for you to be prepared.
Crowdfunding helps businesses to raise funds for their unique ideas or purposes. It is collecting small amounts of money from different investors for their specific business venture or a short-term project. The platform is not location-agnostic meaning that it defies boundaries and reaches people from all over the world allowing people to invest money in promising projects.
Popular Crowdfunding venues already prevailing in the industry provide an easy pathway for borrowers looking for funds that can fund their dream project or support the launch of their film, a music album, or a video game too. Crowdfunding website owners also receive benefits in the form of a commission from each campaign or advertising which makes these sites a great place for investment.
Before delving deeper into the costs, we would like to draw your attention to a few aspects that need to be decided before going any further.
- You can create both a simple website or something more complex. A simple crowdfunding site will be quicker to launch and cheaper to pay. But if you plan to do something more complex which we suggest you rope in a web application development company because the time and money so invested in one go will be a lifetime earning opportunity that will be created from scratch and customized according to your needs.
- You also have to decide whether you want to create a new site or implement a crowdfunding option into an existing site. Integration without a doubt will be simpler and cheaper but there could be issues related to security and usability. This can be done by using various plugins and widgets to launch crowdfunding campaigns. But if you are looking at becoming a full-fledged crowdfunding platform, then this approach will just be a stop-gap arrangement paying merely lip service to what it should actually be.
- The last serious consideration is whether you plan to launch the site for earnings or will it be a non-profit project. If it is a non-profit project, you have to cut down on the costs of developing and maintaining the site. If it is a commercial project then it is recommended that we start with a certain niche that provides a unique value proposition with the possibility of scaling the website as and when needed.
Popular crowdfunding websites like Kickstarter possess all the must-have features that a successful application should have. No wonder it has recorded a more than 36% growth compared to last year in its earnings. Apart from the top-features we already spoke about, let us also understand the other key features or pointers that will help you cater to thousands. We provided these key features to a crowdfunding platform we built called ‘GoFundher’. The web application development process for the complex project was essentially embedded with the advanced analytics and functionalities to create an edge over the competition.
- Rich text editor for campaign generation and editing
- Features that enable potential investors to ask questions regarding the project
- User-friendly and powerful CMS after login
- A separate dedicated section to share detailed listing and information on what exactly the product or the project will be
- Social media profiles should be integrated and an essential part of the fund-raising campaign
- It will be an added benefit if there is a dedicated section for videos, graphics, and updates regarding the project
- Scheduling also is required with campaign photo gallery
- There has to be a layout for the campaign plan with search and filter options
- An option to share regular updates about the project
- Funding page list of the current investor pool
- Reward pool to encourage more investors
- Easy and well-streamlined checkout process
- Detailed donation report for the admin
These features will form the core of your website and will add to the power of your website helping people raise money smoothly.
|GoFundHer – A crowdfunding platform for women entrepreneurs
GoFundHer was a crowdfunding platform designed by our eclectic team of developers and project heads. The idea behind the offering was a robust platform that was secure to send and receive payments, overcame the issue of the previous problems faced and to build a web application embedded with advanced payment gateway for easy transfer of investment amount to the funder. The website is now recognized as one of the top crowdfunding platforms with its presence in more than 150 nations. Read on to get more information
Factors that impact the cost of the crowdfunding platform building
Building a crowdfunding site is a significant undertaking and should be carefully considered. While it looks straightforward, there are a lot of complex things behind the scenes. If you want to build a site based on the best industry benchmarks then the price tag would be in the lower millions to create something that could compete with the top players. Some of the cost heads that would go into building the entire concept will be
Web development – The infrastructure is not at all easy to build around the concept. You will need a well-experienced web-application development company like ours who can create such complex architectures.
Web Design – This will form a major part of the website interface because you need a website that has easy navigation and intuitive format.
Payment engines – If you need a safe, secure and transparent payment processing engine, then you will be required to pay for all the security that ensures the donations are safe.
Hosting – Hosting with the best will shoot up the price but good things come at a cost
We will focus on the costs required to create an advanced site for making money that is with monetization. Here we will focus on 4 important factors with their cost estimations.
Niche is an important part of the entire building because the higher the competition in the selected niche the more money you will need to invest in promoting and creating a crowdfunding site. If you want to compete with the market leaders then we have to create a platform that will surpass them.
We will ensure that a unique platform with advanced functionality and design feature is created that will distinguish your project from your direct competition. The idea has to be strategically above the competition that will attract maximum attention from the users.
We strongly believe that you should choose a niche that has minimal competition at the start and then gradually scale towards other niches. This is how almost all the crowdfunding platforms had started.
Talking about the cost of launching a crowdfunding site in the context of choosing a niche can be divided into either a niche with high competition and a niche with low competition. If we are to go for the former, then it the entire set of costs including marketing will be between $50,000 to $200,000 else it will be between $5000 to $20,000
The cost of creating a website also will depend on the choice of crowdfunding model because development and deployment of interfaces and functionality has to be implemented. The simplest of the models for fundraising will have a description of the project, bank details or even a crypto account. To create a simple site it will cost in the range $1000 to $1500 that is when you are not planning to invest much in design. If you need a more complex model in which the investors participate in the project in exchange for a share in capital, then we will need a system that will collect money, calculate share in the capital and issue digital certificates of ownership which is possible with blockchains, smart contracts and tokens. The launch of such a site is relatively expensive from $10,000 plus the expenses for license and other permissions.
Website design and functionality
The next important factor that affects the cost of launching a crowdfunding site is the design and functionality of the website. For markets with low competition a simple but unique design and basic function will suffice and will cost relatively low not exceeding $10,000. If you plan to compete with the crowdfunding bigwigs then expenses will move up to hundreds of thousand dollars. The functionalities should be included in the basic functionalities of a crowdfunding site:
- Registration and login form
- Powerful account management
- Monetization and project management
- Payments and withdrawal function
- Security and design
- Responsive design application
The main channels of promotion of the site with the average money spend on each is given below
- Content Marketing – the cost could vary between $500 to $5000 because it includes the target audience study, development of the content plan, creation of content in the form of audios, videos, graphics, memes and much more.
- Search Engine Optimization (SEO) – the cost could vary from $200 to $5000 a month because it includes analysis of search queries to form SEO core, creating links, and optimize text content. The cost will also depend on the scope, country, keywords etc.
- Social Media Marketing – the cost ranges from $200 to 10,000 a month which includes ads on FB, Insta, Twitter, YouTube and Linkedin depending on the target audience. It can also be regular advertising through banners, ads and recommendation and influence marketing. Under the spectrum of SMM, the key inputs are: in-app advertising, pay per click (PPC), Affiliate programs and email marketing.
Apart from these, there are other factors that have an impact on the costs of the crowdfunding platform. These heads include:
- Specific requirement
- Features and functionalities required by the client
- Relational Database
- Programming language
We have experience developing crowdfunding websites for clients all over. If you are looking to get one built, then you have come to the right place. Let’s discuss your idea.