What is Crowdfunding?
Unlike traditional sources of funding, which usually comprise bulk sums of money from a very small number of sources, Crowdfunding makes use of small sums of money from a very large number of sources.
Basically, Crowdfunding expands available financing options beyond the traditional circle of bank loans, venture capitalists, owners, relatives and friends.
How does it work?
Crowdfunding makes use of the easy accessibility of vast existing networks of people engaged on the Internet to connect people seeking funding with those who believe in the reason for the funding and are prepared to contribute financially to its undertaking.
Also unlike traditional sources of funding, most Crowdfunded projects don’t grant contributors any equity in a project and contributors have no expectation of a financial return on their contribution.
So why would people contribute anything at all? Great question, glad you asked! Because this is the very heart of Crowdfunding!
People contribute to Crowdfunded projects not for financial reward, but because they believe in the reason for the existence of the project and they consider their reward to be the completed project; for example, an album of new music to listen to.
So how might you go about Crowdfunding a music project?
Here are ten steps that might help you set up your own Crowdfunding project:
1. Define Your Project
Clearly outline the details of your project. This includes the number of songs, the genre, the recording studio, production costs, cover art, distribution plans and any additional expenses you might have.
2. Create a Budget
Before you launch your campaign, create a budget to determine the exact amount of money you need to raise. Consider pre-production costs, production costs, and marketing and promotion expenses.
3. Set Your Funding Goal
Determine how much money you need to bring your music project to life. This should cover all expenses associated with production, promotion, and distribution. Be transparent about how you will use the funds.
4. Choose a Crowdfunding Platform
Select a Crowdfunding platform that caters to musicians and artists. Some popular options include Kickstarter, Indiegogo, GoFundMe and Patreon. Each platform has its own rules and fee structures, so choose the one that aligns with your needs and goals.
5. Create a Compelling Campaign
Your campaign page is crucial. Craft a compelling story about your music project, including your musical journey, inspirations, and why you need funding. Use high-quality images and videos, and make sure to offer attractive rewards to backers. Rewards can include digital downloads, physical CDs, exclusive merchandise, personalized shoutouts, or even private concerts.
6. Set a Timeline
Determine how long your campaign will run. Typically, campaigns last around 30 days, but some can go longer or shorter depending on your needs. Shorter campaigns can create a sense of urgency, while longer campaigns allow for more time to raise awareness. Be sure to communicate the start and end dates clearly.
7. Promote Your Campaign
Your campaign won't succeed unless people know about it. Utilize your existing fan base on social media, email newsletters, and your website to promote the campaign. Share regular updates and engage with your backers. Leverage your network and encourage your fans to share the campaign with their friends and family.
8. Engage with Contributors
Respond promptly to comments and messages from your contributors. Make them feel involved in the project's progress and show appreciation for their support.
9. Deliver on Your Promises
Once your campaign is successful, fulfill your promises to contributors promptly. Deliver digital downloads, physical rewards, and exclusive content as per your campaign rewards. Keep your contributors informed about the progress of the project and its release.
10. Thank Your Supporters
Express gratitude to your contributors through social media, email, and any other channels you have. Personalized thank-you notes or shoutouts can go a long way in building goodwill and maintaining a strong fan base.
Remember, Crowdfunding is not guaranteed success - it requires effort, creativity, and effective promotion. Be prepared for the possibility of falling short of your funding goal and have a backup plan for how you’ll proceed in that case.
Successful Crowdfunding campaigns often require a dedicated and engaged fan base, so focus on building and nurturing your audience throughout your music career.
Good luck with your Crowdfunding!
Blog by The MelodyFusion Team