The modern age of crowd funding began in the 1990s with UK rock group, Marillion, so we start this year with that theme. Crowd funding has been the domain of the creative and artistic types who have been successfully using the medium to fund their dreams. But what is it they can fund? And what rewards can be offered to potential supporters to induce them to part with their money and help the project creator? Our latest blog incorporates the successes that have amounted to large sums having been raised by creative crowd funding campaigns by the musical fraternity.
Musicians are always in the need of better gear or more equipment to help them achieve the desired sound. Crowd funding can assist them afford the gear they need.
And once they have achieved the perfect sound, the costs of recording and capturing that sound for all eternity can be exorbitant, but crowd funding has been successfully used to cover the recording costs of bands and musicians over the years.
Once the sound has been perfected with the right equipment, and the tunes have been captured in digital or “hard-copy” format, it then is the job of the musician (or their promotional team) to get the word out to the world. That involves touring, and that can be costly, and then there’s the promotion of concerts and the recordings themselves. For almost 20 years, bands and solo performers have been using crowd funding to successfully cover these costs, paving the way for current musicians to do the same.
So with an understanding as to what can be funded, what inducements can be used by a musician entice their supporters to part with their cash to fund the campaign?
Let’s go with the rewards offered by successful campaigns that have been run around the world:-
A $10 pledge could be recognised with an offer of digital downloads, getting their music “out there” and (in effect) making pre-sales. Successfully doing this tends to bolster social proof that there is an audience for the band’s music, which is a powerful tool for the band to use when convincing venue-owners to book their act. Approaching a venue owner with evidence that the performers have made strong sales makes for a compelling argument to book them.
A $25 pledge may earn the supporter a ticket (or a couple of tickets), to a gig, again offering a form of pre-sales and validation. It is always reassuring for an event organiser to have had presales made, and with the all-or-nothing nature of crowd funding campaigns, ticket sales are only made and the event only proceeds if the funding targets are met – a win / win for all concerned.
A pledge of $50 may earn the project supporter some other merchandise at prices less than face value. Remember, rewards need to be great value and sought after. Perhaps even offering bundled rewards – a t-shirt plus a CD – may represent something that a true fan may really want. Keep in mind, too, that items in short supply or gifts that are personalised can command a premium. By autographing these types of rewards, supporters may be prepared to pay a premium (imagine if crowd funding had been around in the days of the Beatles when they were young – what would a T-shirt autographed by a young John Lennon be worth today if offered back then??)
Offering personal experiences have often proven to be successful enticements to get supporters to pledge. Rewards like offering fans to sit in on practice sessions, or to come along and jam with the band can be highly attractive to die hard devotees.
Stepping it up a few notches, larger pledges worth hundreds or thousands of dollars could be rewarded by a private performance (offering the services of the group to play at a party, or the singer to perform a couple of romantic songs at an anniversary dinner).
And if these aren’t incentive enough, remember that everyone loves to see their name in lights (or, at least, in print). Offering to put the supporter’s name on the liner notes or on a roll of honour on your website could be just the carrot to get them to hand over their money in support of your campaign. Larger contributions can be recognised by offering the supporter “producer status” on your liner notes or CD sleeve.
So there are the “what”, the “why” and the “how”. Now it just remains for more musicians to recognise the “where” and use the above framework to launch their crowd funding campaign on www.ipledg.com to fund their passion.