Question

What percentage does Kickstarter, the best-known crowdfunding platform, typically take as a cut of the funds raised?

A) 2%
B) 3%
C) 5%
D) 7%

Answer 1

Kickstarter typically takes a 5% fee from the funds raised for a successful project, plus payment processing fees that vary.

Step-by-step explanation:

The percentage that Kickstarter, a well-known crowdfunding platform, typically takes from the funds raised is 5%. When a project is successfully funded, Kickstarter applies a 5% fee to the funds collected. Moreover, there are payment processing fees that range typically from 3% + $0.20 per pledge. Pledges under $10 have a discounted micro pledge fee of 5% + $0.05 per pledge. It's important to factor in these costs when planning a Kickstarter campaign to ensure the funding goals cover the fees as well as the project's needs.