Crowd Funding for Musicians
One of the things that I do when I work with clients is help them find new revenue streams and funding sources. They’re two of the most important aspects when it comes to business growth and development. It’s not any different for musicians. If you want to take music from a hobby to a full-time job, you’re going to need funding to survive and support your music. One of the great ways to do this is through online crowd funding platforms.
Crowd funding is essentially like having a fundraiser but it can be utilized to raise money for new companies and projects. There are literally dozens of companies out there, each with their own pro’s and con’s, that help raise money through crowd funding. Some of the bigger ones are: IndieGoGo, Kickstarter, and RocketHub. There are even crowd funding companies that focus exclusively on music such as ArtistShare, Sellaband, and PledgeMusic. One of the best and earliest examples of crowd funding is the rock band Marillion, who raised $60,000 for a U.S tour in 1997 and has since used it to fund the recording and marketing of 3 albums.
The over-arching premise is simple: fans donate what they can with different levels of donations that get different gifts. For example, a $10 donation will get a free copy of the CD they’re funding, a $25 donation gets a CD and a shirt, and a $50 dollar donation gets a CD, shirt, and personally autographed poster. Don’t sell yourself short, even in today’s economy people are willing to shell out the few extra bucks to help local music and get something cool in return. Who knows, those signed posters could be worth big money some day because they helped fund the album that made you famous!
Crowd funding is so much more than a simple fundraiser, it’s a really fantastic way to engage your fans. Many platforms allow, or even require, artists to post updates, pictures, videos, etc as a way of maintaining momentum during their campaign.
Will crowd funding replace traditional funding sources and revenue streams? Probably not; but they are a great way to get those precious few extra dollars that you need to record, produce, distribute, tour, film, etc. With crowd funding, you no longer need a major label budget to put out a great record. Simply ask your fans for help and everyone wins.
Kelli Richards, CEO of the All Access Group, LLC
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