ConnectionPoint’s platforms all let users choose how we get paid – it all depends on the pricing model for your campaign.
Transparency is very important to us. There’s often lots of confusion as to how crowdfunding platforms make money, and we want to be completely upfront about how we do things. So here you go, no holds barred:
A couple of important points to know:
There are no ‘fixed’ fees to use our platforms: no monthly fee, annual fee, registration fee, etc. Everything is transaction based – meaning we only make money when you do*.
All payment processing fees go to Stripe and PayPal – we don’t get any of that either.
We do have an in-depth article about our pricing models, but here’s the simplified version of how the platforms collect funds from each:
Optional Tip model – you are charged nothing but payment processing. The platform asks your supporters for a ‘tip’ to the platform that they can very easily opt out of. It’s entirely possible you could run a huge campaign with ConnectionPoint not making a single cent from it – and that’s okay! We’re still happy you were successful, and we are NOT going to ask you for anything extra. Any tips do not count toward your goal.
Fee Recovery model – This is our way of trying to make running your campaign as close to free as possible by asking your supporters to cover ALL fees for you (including Stripe and PayPal’s). Each transaction is charged payment processing and a platform fee (5%, as is the industry standard). The more supporters cover your fees, the closer to free you get! Recovered fees do not count toward your goal.
Flat Rate model – Some (mostly larger organizations) do not want to ask their supporters anything extra and are happy to pay the payment processing and platform fees to avoid that. Fees are deducted from the transaction, and supporters are not asked for anything more. They do, however, count toward your goal – so make sure to include the ‘cost of fundraising’ when deciding what your goal should be.
Can I remove the ask for a tip from the Optional Tip model?
This is a common and understandable question. However, the answer is ‘No’ simply because we must make money somehow. Our platforms are quite unique, and they require a lot of manpower to develop and run. Plus, we offer FREE support, coaching, and resources, and there are tons of other behind-the-scenes work done by phenomenal teams that deserve fair compensation. We understand the severity of the need out there, and the simple fact is that we would not be able to put the dedication and resources into our platforms that we do if we didn’t provide this compensation.
* The only caveat to this is our Implementation packages. While we provide step-by-step guides through every aspect of the platforms, as well as free coaching tools for success, time is sometimes more valuable to an organization than money (or time IS money, as the saying goes). Therefore, we do offer for our team to set up an organization with a profile and campaign so they don’t have to take the time to learn how to do so themselves, for a fee. Inquire with us if you’re curious about our Implementation Packages.
