QiKfunder's Sliding Scale
What is it?
When starting a funding campaign, creators have the option to choose between an All or Nothing funding plan, or our Sliding Scale model. Like it sounds, the All or Nothing funding plan requires creators to reach 100% of their goal in order to receive any funding. This can be a great fit for projects that might only be able to complete their project if they receive full support. However, we've found that with some extra hard work and creativity, many creators can complete their projects with less than 100% funding. For that reason, we've designed our Sliding Scale model to allow a more flexible funding plan, while still rewarding creators who achieve 100% of their goal.
How Does it Work?
Within the Sliding Scale funding plan are several different tiers. The first tier begins when a project reaches 50% of its goal. If the project can sustain 50-69% of its funding goal by the time the project ends, the creator will still receive the funding raised, subject to an 8% fee. At 70-79% of the project goal - the second tier- the funding fee drops to 7% of funds raised. Reaching the third tier, 80-89% funding raised, decreases the fee to 6%. The next tier decreases the fee to 5% when 90-99% funding is reached. The final tier, funding of 100% or greater, drops the funding fee even lower than most competitors' standard fees - only 4%! With the sliding scale, project creators still get the opportunity to make their product, service, or idea a reality - even if they don't reach their funding goal. In addition, staggering the funding fees gives creators a strong incentive to present strong presentations for well-designed products, services, & ideas.
Where can the Sliding Scale be Used?
While we encourage creators of Causes to establish solid funding goals on their campaigns, we don't presently apply the Sliding Scale to Causes. Causes retain any funding received, subject to a flat 4% fee - regardless of whether or not they meet their goal (why?). Otherwise, any social funding campaigns on QiKfunder may use the Sliding Scale funding plan!