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As an independent artist, it’s frustrating to be stuck and broke. You find yourself wondering why others are successful and where all the money is hidden. Yeah I know, it’s really all about the music, but the reality is you need money to operate your business and invest in your future.

In my continuing Mini Series, I reveal tools and specific strategies you can implement to create multiple revenue streams and cash flow for your music. Discover two crowdfunding platforms you can use to support your art and ring your cash register again and again. 2015 can be your best year ever!

Let’s get to it.

studio guy

You will learn about Patreon and Pledge Music and how to use those platforms to increase your cash flow through fan funding.

Jump into the video as I show you the money.

Thanks for all of your comments and encouragement. I absolutely love hearing what you’re thinking, so please be sure to leave a comment or question below today’s video. Someone will be very happy that they did.

PLEASE – If you know anyone else who might benefit from watching this Mini Series on the music business, please share this post with them. 

Taking the leap from a day job to a full time career in music can be scary, after all, you’ve got bills to pay. However, not only is a career in music possible, there’s also a ton of musicians out there already doing it!

Will Dailey is an independent, Boston-based recording and performing artist. He is a three-time winner of the Boston Music Award for Best Male Singer-Songwriter and has released albums with Universal, CBS Records, Wheelkick Records, and JS Music Group. His new album, National Throat, was released on August 26, 2014 debuting in the Top 20 on the Billboard New Artist charts, the highest charting position of Will’s career. The album was made in collaboration with fans through a PledgeMusic campaign.

Will Dailey is proof that a full-time music career is possible. Not only that, music can also be a very reliable and sustainable income stream for the dedicated musician. Dailey has used Pledge Music, an online direct-to-fan community that allows artists to connect with their fans through the entire creative process, to build a loyal fan base while simultaneously raising money to fund his projects.

FreeWebinar_WillDailey_PledgeMusic

If you’d like to learn how make music your full time career, check out this free webinar interview with Will Dailey, and Benji Rogers and Jayce Varden of Pledge Music. They discuss how independent musicians can make music full-time and how to create direct-to-fan relationships to help them build their careers. They also talk about fan patronage and cultivating fans throughout the recording and release process.

The webinar will run September 3 through September 12. Sign up for the webinar here: http://newartistmodel.com/webinar .

 

 

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In the past, money was a huge barrier for musicians, and one of the main reasons many were forced to tie themselves to a record label. Today, many musicians are finding their own ways to creatively fund their albums and tours, with the most popular option being crowdfunding. Crowdfunding is a huge undertaking, but, if done correctly, you can come out of it with a whole lot more than just money. It also presents dedicated and creative artists a chance to connect with their fans in a whole new way.

Learn how to run a successful crowdfunding campaign with these 5 tips:

1. It takes a crowd.  

I think a lot of people mistake crowdfunding for an endless well of money, but, the sky is not the limit. The amount of money you can raise is entirely dependant on the size of your fan base – your crowd. Generally, the more fans you have the more money you will be able to raise, although there are other variables like fan dedication and income level. Amanda Palmer was able to raise upwards of a million because she has a huge, dedicated fanbase with spare cash to throw around. Pretty much the perfect scenario.

There’s no way to tell exactly how dedicated your fans are and how much money they would be willing to donate, but you can look at some figures to get a better idea. Look at how many people you have on your email list, how many people come to your shows, and how many people you have following you on social media. Don’t assume that every one of your fans will donate – even the most amazing musician in the world couldn’t accomplish that.

Think about how much your average fan would be willing to spend to help your cause. If your fanbase is generally high schoolers or college kids, they may not have as much spare cash as working adults in their 30’s. Think about what your super fans may be willing to spend. If you offer any higher-end products on your website – like VIP passes – look at how many of those typically sell to gage the amount of dedicated fans you have. Use all of this to set a reasonable goal. Setting a goal too high and not meeting it is a depressing thing no one wants to face. Not to mention it definitely has a negative effect on your brand.

2. Choose the right platform.

There are tons of crowdfunding platforms out there, each with it’s own unique features and benefits. Don’t just use Kickstarter because it worked for Amanda Palmer. Have a reason for your platform choice.

Pledge Music is a music-specific crowdfunding and fan engagement platform with options to set up a crowdfunding or pre-order campaign. They have connections with music companies that can help you with things like manufacturing, marketing, and distribution and may be the best choice overall for music projects. Kickstarter has a huge profile, with hundreds of thousands visiting the site each day. On the downside, you only get the money if you meet your goal and you could get lost in the crowd. Depending on what kind of campaign you set up, Indiegogo can allow you to keep the money you raise even if your goal isn’t met. However, Indiegogo takes a higher fee from these kinds of projects.

3. Make a budget.

Your budget isn’t just what you want to fund. If you ask for exactly what you need to fund your recording or tour, you’ll find yourself in debt. Each platform takes a percentage fee from successful projects.

Taxes are another issue. Technically, the money you raise from crowdfunding is income and needs to be reported. This probably won’t be hugely significant for smaller projects, but all these costs can add up and you should take it into account.

On top of that, rewards cost money as well. People are paying for that t-shirt or vinyl, but you still need to make it (and ship it to them). Figure out exactly what each reward will cost you and how much they will cost to ship. If you have international fans, look into international shipping costs. The worst situation you could be in is not being able to get the rewards to your fans who took the time and money to help you out.

4. Think about your rewards.

On top of just budgeting, you need to think about your rewards creatively. Make your rewards relevant to your project and your fans. Teenage girls may love magnets made from secret, Instagram photos of the recording process. A slightly older fan base may really appreciate vinyls and even some higher-end custom vinyls with artwork. Think about the project itself. Having a signed electric guitar as a rewards for an acoustic album doesn’t make much sense. Get creative with it.

Make sure you have rewards that take different levels of fans into account so as not to alienate anyone. Digital downloads, physical CDs, posters, magnets, and other little things like that are great lower end options. These are great for your more casual fans who may not be willing to or have the means to donate very much. Mid-priced rewards like vinyls, a t-shirt, or personal things like signed copies or special notes are great for your more serious fans and those that crave personal interaction. Have a few higher-end options. A private house concert or VIP pass is a great way to get your super fans involved.

Keeping all that in mind, make sure you don’t over-invest yourself in the reward process. You need to make sure you have the time to create the rewards. Handwritten lyrics may seem like a good idea, but keep in mind that you could be writing hundreds.

5. Continuous content.

Crowdfunding isn’t just a beginning and an end. Mass pushes at the beginning and end of the campaign won’t get you very far. You’ll be left with an unmet goal and a bunch of annoyed fans who had to block your hourly updates from their social media news feeds.

Statistically, most pledges to crowdfunding campaigns come in at the beginning and end. People are motivated by new content and a deadline. You can use this to your advantage to drive more pledges in the middle of your campaign. Release a new, special reward halfway through your campaign. Keep in mind that the entire process is an opportunity to engage your fans in a new way. Release update videos showing your fans the progress of the album they are helping you make. Release short teasers or rough drafts of songs. Ask your fans’ opinions on your lyrical work-in-progress. Try to make the content exciting and engaging. You want to keep awareness for your campaign up but you don’t want it to feel pitchy.

Crowdfunding is a huge undertaking. If you’re looking to start your first crowdfunding campaign or want your second one to be more successful, check out the New Artist Model online music business school.

Dave Kusek

The New Artist Model in an online music business school for independent musicians, performers, recording artists, producers, managers and songwriters. Our classes teach essential music business and marketing skills that will take you from creativity to commerce while maximizing your chances for success.

Photo credit: http://bit.ly/1h7Jtka

Photo credit: http://bit.ly/1h7Jtka

Crowdfunding isn’t being talked about as much as when Amanda Palmer ran her famous Kickstarter campaign, but it’s still going strong. It’s still a great way to fund your projects. However, we’ve all learned a few things about the process along the way. Crowdfunding is more than just a funding tool. It’s a way to connect with your fans, build a deeper relationship, and get people interested and buying your music before its even created. Pre-sale and marketing are just as much a part of crowdfunding as funding.

Here are 5 crowdfunding for musician tips that will set your crowdfunding campaign on the right track. These tips come from the CD Baby blog. This is just a short excerpt, but you can check out the full article here.

1. Build your crowd and then fund: Although there is a discovery element to most crowdfunding platforms, you’re gonna end up very disappointed if you launch a campaign without an existing fanbase.

2. The number isn’t as important as loyalty: If you buy followers or email subscribers, it doesn’t mean they’re gonna buy your crap. You don’t need a huge fanbase to run a successful campaign; you just need an active group of loyal fans, the kind you earn one at a time and interact with regularly.

3. Give your fans an experience: You’re not just selling downloads and t-shirts. You are including your fans in the creative journey. More on this in the next section…

4. Over plan for the fulfillment process: Make sure to get all the pertinent information you’ll need when fulfilling all the orders, rewards, perks and exclusives you’re offering. One of the most commonly overlooked pieces of information is the size preference for t-shirts. But also, make sure not to offer the house concert option to people in Thailand if you’re not going to be able to follow through.

5. Keep updating after you hit your goal: There is often a gap between when all the money is collected and when the final product is released. Don’t leave your fans hanging like a prom date that might not show up. They spent a lot of money on that dress. Make sure they know you’re still taking them to the dance. Keep them updated as to your progress.

There are a lot of great crowdfunding tools out there, but one that stands out for musicians is Pledge Music. Because the platform is specifically focused on musicians, they have a lot of tools in place to help you keep on track and follow the tips outlined above. Here are some stats from Pledge Music:

* 22% of PledgeMusic site traffic comes from fans sharing pledges-only updates.

* 75% of pledgers contribute to a campaign without knowing the band personally. Ergo, they are the email subscribers, Facebook fans, Twitter followers, etc.

* The average pledge is $55-$70.

* 37% of pledges are over $250.

* 37% of the income comes after the 30-60 day campaign on other platforms would have ended.

* PledgeMusic boasts an 86% success rate of reaching funding targets.

* On average it takes 17 pledges-only updates to hit your financial goal.

If you want to learn more about crowdfunding, CD Baby has a free guide available.

Crowdfunding is one of those things that you cannot fully understand until you do it yourself. You can read up on crowdfunding books and still encounter something completely unexpected during your campaign. This is why it’s so important to pick the brains of successful crowdfunders when you get the chance. If you don’t know someone with a crowdfunding campaign under their belt, search the internet for the next best thing. There are a lot of people blogging about their crowdfunding experience these days. Find some people who funded similar projects to the one you plan on starting and learn from their mistakes and triumphs.

Jody Quine is a vocalist and songwriter who recently completed a Pledge Music campaign for her solo EP,“Seven.” In the past, she has been a part of some very successful projects, but never had the funds available to do anything solo. She launched her Pledge Music campaign in November, 2012. She wrote this post for Crowdfunding For Musicians.

1. Timeline

All eager to succeed and get my music out there I figured I’d raise the money in less than a month, record immediately and have a finished product mixed, mastered and manufactured in no time.

My campaign went LIVE in November 16th, 2012 and the last of my exclusives/CDs were put into the mail on October 29th 2013.

Keep in mind that when all goes well it’s possible to get your record finished and delivered in no time but things pop up from producers having other better paying projects running long to computer issues when designing your cover. Give yourself time to honestly deliver your product to your fans. They’ll appreciate your honesty and awareness. Also make sure to keep them up on what’s happening and they’ll be pretty forgiving.

2. Underestimating cost and setting the right ‘Posted Goal’ amount

As much money that you might be able to raise keep in mind that you could always use more. With Pledge you don’t get your money until you hit your posted goal amount so keeping it lower to ensure you will get funding is great but then once you hit your 100% people think you’ve raised all the money you need to record and pledges can slow down immeasurably. Remember that one song really could prosper with the use of real strings or that you might have to retrack the piano when you get home from LA and pay an extra $500 for that day in the studio.

It’s a fine balance between how much you think your fans will kick in and being realistic with how much you’ll need to accomplish what you’re setting out to do. Between those 2 numbers you’ll find the right ‘Posted Goal’ so you’re able to get your funding as well as afford the record you want to make.

3. Charity

PledgeMusic is a great service and wonderful opportunity in the new music industry model, however they don’t work for free. They take 15% of all the money you raise. Beyond that you can also agree to give a % of your pledges to a charity of your choice. I agreed to give 10% after I’ve reached my posted goal to a charity. As my ‘Posted Goal’ was too low to actually record a full album now I also had to earn an extra 25% to meet my expenses.

I had a friend who pointed out to me ‘Why are you giving it to charity when you’re already the charity’. I had to laugh because he’s right. It’s great to give back for sure but perhaps keeping it to a lower amount or making yourself available to play shows for or at your charity makes more sense. So do give back but again remember your costs of recording, mixing, mastering, designing, manufacturing, and SHIPPING, sometimes to fans who live on the other side of the world, adds up and as wonderful as it is to give to a charity if you can’t complete your project and deliver it to your fans you’re shooting yourself in the foot to really be in a position to give.

4. Exclusives

What is it you really have in you to make for your fans? I offered handwritten thank you notes and lyric sheets as 2 different exclusives. I love that idea! But as the day came to start fulfilling those pledges I was completely reminded of how I fractured my hand at the age of 11 and now decades later all the writing I do is barely legible and only for creative purposes. Anytime I have to write for more than 10 minutes in a way that people can read what I’m writing my hand cramps and the pain sets in. Next time I will keep this in mind and offer only a set amount of them for a larger pledge amount making them more of an exclusive exclusive and offer other items I am more able to create without pain. Lol.

Also I’m more aware now of what it is that I can offer that is exclusive to who I am as an artist as well as a person that my fans might enjoy. Be aware of what you really want to be making for them so you can do it joyfully and in good time.

5. Fun

Have fun!

This is not an exercise in stress or disappointment! You’ve got to be open to go with the flow and trust the unfolding of your record.

There will be challenges and hold ups but all in all your fans are there for you and helping you do what you love to do! So be grateful and enjoy the process because if you’re lucky you’ll get to do it over and over again.

KICK ASS!!
jody

What have you learned from your crowdfunding campaign?