The music industry is changing positively for good. Doors of opportunities are opening. Smart and business savvy musicians are making the best out of the windows of opportunities that is now wide open. Many venues are booking music, a reflection of the fact that more bands are touring.
With portable players, smartphones, coupled with online streaming services, business in music has moved to another new level in terms of money making. Getting an audience is far easier than can ever be imagined. Reaching the target audience poses no problems. Thanks to social media tools, Email lists and other tools such as Bandzoogle, ArtistData and ReverbNation. Crowd funding is a veritable source of cool business for Artists of today.
Creative new revenue streams that were not in vogue about a decade ago have suddenly crept up the ladder. The cost of manufacturing and publishing a release has put a truly professional campaign out of the reach of an average indie Artist. The main target is the audience which at any rate, the Artist does not have access to. CROWD FUNDING comes in here as a veritable way out.
It has become a shoulder upon which indie Artists who does not have the type of money label owners demand. These platforms have provided a level playing field for Artists to break even. For the purpose of this write-up, l will be detailing the working mechanism of one of such CROWD FUNDING outfits. I shall be delving into KICKSTARTER.
If it is recognition, mass appeal and reputation all rolled into one, KICKSTARTER provides all these. In fact, this platform is referred to and rightly too as the grand-daddy of crowdfunding platforms. It has become the brand name for fan-funding. And because this name rings a bell, it will go a long way to help your fans understand your project. Majority of the fans have a basic understanding of what kickstarter is all about.
In dealing with kickstarter, you will have to open what is called ‘PROJECT PAGE’. Displayed on this page is the amount of money you intend to make. Your project is being followed and monitored as the campaign progresses by the fans you are the determining factor here. When certain benchmarks are reached, excitement is generated, the fans are motivated to spread the news about the project. Some fans can go fanatical, some can go the extra length to donate bizarre amounts just to see the project through.
The campaign period is fixed. It ranges between 30-60 days as the case may be. It is mandatory that you reach your funding goal at the end of your campaign. If this is not achieved, no dime will be paid to such Artist, however, your backers will be refunded all the money. Such unsuccessful projects are out rightly canceled by Kickstarter. There is a minimum amount of money that is needed to complete the project and you cannot reasonably complete it without raising that specified amount of money. Musical projects are very scalable because majority of the Artists play very safe by choosing a realistic goal amount.
The fear of Kickstarter taking back all the money should not make any Artist give in to setting ridiculously low goal. At the end of the day, you should be able to bring out a musical package that you will be proud of. Set realistic goals and targets. Fans are generous, by setting a realistic goal, you stand the chance of making up to 200% in excess of your budget.
Using this platform is not absolutely free. A service fee of 5% is paid to Kickstarter. In addition to that and depending on the amount of money raised, another charge of between 3%-5% is paid to Amazon. So in all, a maximum amount of charge of 10% is paid when using this platform.
Get this right and clear, Kickstarter will not track your fans for you. As an Artist, do not expect this platform to communicate with your fans. There is no form of fulfillment support here, neither is there any flesh and blood contact with Kickstarter staff. Kickstarter will not take part in fulfilling your orders. Include all these in your budget.
Kickstarter is credible. It makes it easy for the Artist to get at the fans, thereby spreading the word.
If you enjoy my blog, read more by click here, and “Youtube and The Business of Music“.