What is Crowdfunding?

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In the old days, even Beethoven had to source funds to compose and play.  He wrote pieces for patrons, including Prince Lichnowsky, where he depended upon generosity in exchange for private performances and copies of his work.

“Crowdfunding is Beethoven with Social Media” – Brian Meece, Rockethub

It’s the latest buzzword yet it’s an old idea. The idea behind ‘crowdfunding’ or ‘fan-funding’ is that an artist or band pitch a concept, for example the release of an album, to potential investors, usually fans, in exchange for a signed CD, an intimate gig or some other creative productive or event and the sense of being part of an artistic piece of work.

Many [fans] want to be involved with their artist’s art yet do not know how.  Crowdfunding is the how.

Patronage on a micro scale

Things have moved swiftly forward since Beethoven and the launch of sites such as www.sellaband.com

Beethoven didn’t have twitter or blogging contests to help him develop great projects.

The concept, in a business sense, is not a new one. Entrepreneurs gain investors and capital by creating a business plan. If the plan is seen worthy and well researched it has a greater chance of support and, therefore, manifestation.

If the total required is raised the project is executed.

Some crowd funding sites allow you to pitch for a certain amount of money in a certain period of time, say 30 or 60 days.  An example in the UK being www.wefund.co.uk. If the target investment is met during the specified time, the money is withdrawn from the investors and the project goes ahead.  If the target is not met, no money is taken.

The Crowdfunding Manifesto

Brian Meece of RocketHub shares his advice and tips in this CD baby podcast detailing how to create and execute a successful crowd funding project. The informative interview includes:

  • The three pillars of creating a successful crowdfunding project
  • The key things you need to consider when pitching a project
  • What the most popular ‘price points’ are for fans/investors

Brian shares some inspiring examples including a New York singer/songwriter who grew support through her love for baking and another artist who gained a chunky one-off investment by offering surfing lessons.

Act carefully

It is important to consider, when embarking on any plan that requires asking others for their cash, that your credibility is at stake.  You must deliver on your promises.

Having a mind-set to over-deliver may be in your favour.

Fan or crowd funding is not something any artist should rush into without careful planning and consideration so research is critical. For example:

  • check out the links above
  • think about what may delight or surprise your fans
  • consider the network you already have

You may also want to hunt down and connect with those that have already successfully completed a crowd funded campaign. For example, Guajira’s World Fusion Vinyl Album. I’m glad folk still want to make vinyl.

Fans

As mentioned in this post:

There are 1.3 billion people with regular internet access in this world.  If you can attract 1% of 1% of 1% of them – that’s ten thousand fans.

Whilst many artists seek to find a greater number of new fans, it’s important not to lose focus on the ones you’ve already got. Sometimes it’s as much about exploiting the depth of your existing fanbase as it is the width. It’s all about being authentic, making connections and creating a compelling project, product or idea that captures the hearts and inspiration of others.

Have you thought about crowd-funding?

Share in the comments section below.

Further reading and listening:

Photo Credit: © Matthew Field

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