I’m embedding this presentation I gave a few months ago at Sam Ash in New York City. It’s available on Slideshare too!
How Do I Create Crowdfunding Rewards?
The most common question we’re asked by musicians raising money on TuneFund is How do I create rewards for my contributors? Below is a simple guide that will help you get started creating rewards for your campaign. The most important thing to remember is be creative and have fun. Easier said than done for some but well worth the effort!
- Have a wide range of contribution levels within these parameters: small ($20 – $100) • medium ($150 – $500) • large ($600 – $1000) • over $1000
- 80 / 20 rule: 80% of your contributions will be in the
- < $25 – $50 range while 20% will be big contributions
- Every contribution is matched with a reward that should be commensurate in value with the contribution e.g. a reward for a contribution of $50 is a tee shirt that cost you $12 to make
- Rewards should provide the contributor with a sense of inclusion or shared experience – it’s why they’re funding you!
- Study your network to determine the overall “wealth curve” and set contribution levels accordingly
- Have FUN creating your rewards
hearitlocal.com Adopts Crowdfunding Model
Having been in a band for the better part of college, finding a gig was one of the hardest parts of making it. The tunes were there, but getting a place to showcase them was nearly a full time job. Using a crowdfunding model, Hear It Local (http://www.hearitlocal.com) is taking an new approach to connecting musicians to venues, promoters, and, ultimately, the audience. According to this TechCrunch article (http://techcrunch.com/2012/
Peer-funding – Not Crowdfunding
Tom Dawkins, a co-founder of StartSomeGood.com, a crowdfunding site for social entrepreneurs makes an excellent point in a recent article on Dowser.org:
…we prefer the term ‘peer funding’—because there really isn’t an anonymous crowd out there just waiting to shower you with money, no matter how good your idea is. Every project is a unique community convened by that entrepreneur. And the ones that succeed do so because of hard work…
I have to agree and the same concept applies to crowdfunding campaigns by musicians. Most crowdfunding campaigns are funded by the campaign owner’s network of fans, friends and family which is why it is so important to be sure everyone in your network is aware of your campaign and is promoting it in their own networks of friends and family.
This takes a lot of work and dedication so knowing how big your own network is to begin with can help you set a realistic funding goal.
Julia Nunes Crowdfunding Success
Today Bob Lefsetz wrote a short piece in about a crowdfunding campaign on Kickstarter by Julia Nunes. She set a goal of $15,000 and totally killed it raising a total of $77,888. Awesome work. CNN covered her story as well. In the CNN piece she makes a great point about a DIY nation rising up. You can definitely feel it and we’re stoked to be a part of it!
Jim Eno from Spoon on Funding Recording Projects
Jim Eno from Spoon was interviewed at the site of this week’s Rethink Music conference in Boston. In this short clip he reiterates what most musician’s already know; advances from record companies to record are a thing of the past. Today artists must be creative about how they fund their recording projects. Crowdfunding recordings will become more and more common in the coming years.
Fan Funding Segment on WNYC
Last night WNYC’s music show “Soundcheck” ran a segment on fan funding. All the usual suspects were mentioned; Kickstarter, Indiegogo, Rockethub. It was a good overview and examined from the musician’s perspective. Worth a listen.
Here is the show:
Blueprint for a Career in Music
There is a great blog post by Suzanne Lainson from her blog Brands Plus Music that outlines several tactics and strategies that could lead to a successful music career. The list covers musical ability, performance skills, fans, merchandise, technical/production skills, image, marketing and touring. Several of the tactics she mentions including;
TECHNICAL SKILLS
Can you make frequent videos? At home? On tour? Using split screen? Animation?
Can you do all of your recording in a home studio that you’ve put together yourself?
HAVE STUFF TO SELL
Do you have great looking merchandise? Or maybe not so great looking merchandise, but you made it yourself and you’re marking up the price like crazy?
Are you offering merchandise at multiple price points?
Do you have something for the guys and something different for the girls?
Limited edition items?
Vinyl?
A snazzy display table?
A sexy merch person?
can be paid for with a crowdfunding campaign. Crowdfunding for musicians is becoming part of the standard arsenal of tactics to establish and build a successful career.
What other basic strategies and tactics do musicians have to master to manage a career in music today?
What Is Your Biggest Music Career Expense?
We’d like to know what the most expensive aspects of being a musician are so we created this simple poll. In our experience these are the most common expenses most musicians and bands face but if we’ve left something off the list please email us your thoughts or leave a comment.
This is the first in a series of polls we’ll be publishing to learn more about your funding needs as an independent musician.
[polldaddy poll=4664825]
Online Music Space Too Crowded?
Interesting article in the NYTimes about the growth of the online music space. Lots of VC money pouring in, lots of competitors but not enough paying listeners. Sounds like a classic internet story to me and a bubble in the works. The silver lining for indie musicians is there will many places to get your music online and reach a few more people.