LOS ANGELES-With so many new crowdfunding campaigns cropping up, managershave a wide number of options for which online platform to use formarketing and fund-collecting purposes. With more than 800platforms out there, those new to the game may be tempted to chooseone that is popular and offers the “easiest” system for managers,but this could be a mistake if the platform doesn't meet the fund'sneeds in the end—and it can get expensive.

“Where there are a few crowdfunding success stories, 60% ofcampaigns raise little or no money on platforms,” AlonGoren, founder and CEO of InvestedIn—aLos Angeles-based white-label crowdfunding company that has helpedentrepreneurs raise more than $32 million—tells GlobeSt.com. Add tothis recent news stories about crowdfunding platforms that havereported insolvency due to the high costs, despite 15% fees—and“it's apparent that the commission-based model is encounteringproblems and may not be serving entrepreneurs as well ashoped.”

In fact, it might be more cost-effective and overall moreeffective for fundraising purposes for fund managers to skip theplatform completely and launch direct-funding campaigns on theirown websites, says Goren. “It's not the commissions themselves thatare the problem, but it's one of those things where you don'talways get what you pay for. As we learn what works and whatdoesn't with crowdfunding campaigns, you often realize that payingcommission isn't really worth it. You might be better doing it onyour own, or maybe using a site for a niche market that you'reinto. You may pay more than 5% commission, but it might bring abetter audience to your campaign.”