How Much Do Crowdfunding Agencies Charge?

Crowdfunding is a great way for businesses to raise money and get their product or service in the hands of consumers. However, it’s not easy to do on your own. That’s where crowdfunding agencies come in. These agencies can help you with all aspects of your campaign, from marketing to fulfillment. So, how much do they charge?

Engagement Fees

The first type of crowdfunding agency fee is the engagement fee. This fee is based on the number of services that you opt into with the agency. Generally, the more services you use, the higher this fee will be. It’s important to note that not all agencies charge an engagement fee.

Success Fees

Success fees are based on how much the campaign raises. Some agencies charge based on total campaign raise, some charge on tracked revenue, and some charge based on total spend under management. For example, some agencies may charge a success fee of 12% of funds raised. So if you raise $50,000, an agency with this success fee structure would charge a success fee of $6,000.

Retainer Fees

Retainer fees guarantee a minimum amount of work each month. This is a good option to ensure that agencies don’t leave you and your campaign in the dust when the going gets tough. Having a minimum retainer will also encourage the agency to stay engaged each month. 

Blended Fees

The last type of fee is the blended fee. This is a mix of engagement, retainer, and success fees. It’s designed to be fair for both the agency and the client, and a good blended fee structure should have everyone’s best interests in mind. Blended fees offer the predictability of a retainer fee with the upside potential of success fees.

Conclusion

Crowdfunding agencies come in all shapes and sizes. It’s important to understand the different types of fees they charge before you decide which one is right for you. Do your research, ask questions, and make the best decision for your business.

Rainfactory is a full-service crowdfunding agency, and we develop fee structures that are fair, transparent, and tailored to each client’s unique needs. Contact us today to learn more about our fee structures and how we can help you raise money through crowdfunding.

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