crowdfunding

To Crowd or Not to Crowd Fund

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So, for those of you who are new to “Crowdfunding” or have actually never heard of it before, here’s a little brief description of what it entails…enjoy!

Crowdfunding is a donation based type of fundraising for a business or a creative project typically via an online platform. In the music world, this refers to “fans” giving their money to artists to help them fund an album or tour etc. but in return for a gift. This gift could be anything, more than likely it is given in the form of band merch, creative work (SONGS) or personalised incentives.

 PLATFORMS

  • Indiegogo
  • Kickstarter
  • Pledge Music
  • Sellaband

The 2 main companies that are seriously competing for album-specific crowdfunding are Pledge Music and Sellaband. But, which should I choose you say? I’m gonna give you the low down on the 2 and you can pick for yourself…

PLEDGE MUSIC

PROS

  • International business.
  • Specifically geared towards musicians.
  • Pledges receive exclusive content for giving money.
  • The site is run by music industry moguls.
  • Has an 82% success rate.

CONS

  • The funding transactions occur only if the goal is achieved. Goal is not achieved then no money for you my friend  *weep*
  • They charge a 15% flat fee for usage!

SELLABAND

PROS

  • Good for album and concert based funding.
  • It has been featured on main stream television programmes including BBC news, Forbes, CNN.

CONS

  • Maximum funding rate is £250,000. This automatically puts a limit on your funding goals. If more money than this is needed then basically you’re screwed unless you find some other way of funding.
  • The minimum incentive you have to give out is a download. This may be something that you don’t want to give out to fans yet.

 

MY OPINION

Here we go, time for me to put my say in 🙂

Crowdfunding is something that I believe in. A lot of people disagree with this venture as they believe it to be taking money from people, but in my opinion if someone wants to help you out, why stop them? They know the reason for the funding an if they want to help you succeed, then that’s down to them.

All I would say is that if you are a new band, I would maybe wait until you have built up a fanbase first before you go ahead to create a profile on one of these sites. To be able to receive money, you need to have people that will actually pledge their money to you because they want you to create the album or play the tour that you are promising to do with their money.  Always make sure that the rewards in which you are giving out are exclusive content that they cannon find elsewhere. This will further your chances of your fans pledging. Another reason to why fans will do this for you, it makes it personal to them. It’s their money that is taking you forward, therefore making them a part of your success and to fans there is nothing more important that being personally attached.