Thinking, That’s All: The Crowdfunding Quandary

Who would’ve thought 5 years ago that crowdfunding campaigns would reduce the need for record label backing? I certainly didn’t. We’re at a stage where any band can create a campaign to help them release an album, a t-shirt line, even fund a van to tour around in. Whether you stand firmly on the idea that crowdfunding is the “easy way out”, or you think it’s the greatest thing since sliced bread, you’ll want to read what I have to say on the subject. I’m pretty in the middle when it comes to crowdfunding – there’s many obvious benefits to it, but also a few huge drawbacks. Stay tuned.

From someone who isn’t a musician, I’ve got to say, I think crowdfunding is a pretty cool thing. I always like seeing bands who are making a comeback start campaigns on Kickstarter or IndieGogo, filled with awesome perks like signed albums and the like. Bands like Misery Signals and Protest The Hero are just two of the biggest names that have used these tools to avoid the pitfalls of a label.

But there’s a few absolutely wrong ways to use the platform, as well. You’ll often see bands who’ve been around for 6 months try to create a campaign for things like a van, and though if people want to donate, that’s their prerogative, I’m just not sure it’s something a startup band should be trying to do. Do you have a fanbase of more than just your friends and family? If not, maybe you should be honing your craft instead of trying to move too fast – but that’s just one writer’s opinion.

I’ll map out a list of some of the positives/negatives of the crowdfunding platforms today.

Positives

*Crowdfunding reduces the need for a record label, and usually gives you complete control over a campaign, and the various perks you want to add. If you’re a great musician and you know you’re going to deliver a quality product, things like Skype instrument lessons are a great way to connect with your fans, and create an experience most people can’t get unless you happen to be on tour.

*Speaking of the perks, it’s pretty cool when I see bands get creative. I’ve seen campaigns that include ideas like putting a fan’s name on the band van, offering a fan the chance to guest vocal/guitar/etc on the album, and even have their name tattooed on an individual band member. Whatever you’ve got to do to survive.

*A successful crowdfunding campaign can show that you’ve got loyal (in some cases, extremely loyal!) fans who will show confidence that the resulting product will be quality, and that you’re a band worth supporting. Word of mouth promotion can be very effective in situations like this, especially if the perks are set at fair prices, and it’s fan interactive. So if you’re into writing personalized fan letters or lyrics, you’re going to attract much more attention than you would with a bare bones, average one.

*You’re going to do really, really well if you offer cool/funny/useful perks at every level – a $1/3/5/10/15/25/40/50/75/100/150/200/300/500 scale is just about perfect, though you can tailor it to any size project. I know I’d pay $1 for a Tweet from a band – I’d at least know I’m contributing something to the cause.

*If you’re on the touring grind, offering a yearly guestlist spot (or better yet, a lifetime VIP guestlist spot) is one of the best perks you can give out, especially if it’s priced right.

*Exclusives are great – limited edition merch, collaborating on music together, dinner with the band – these are all great things to consider.

Drawbacks

*There aren’t that many drawbacks to crowdfunding campaigns – but one that should be noted, is the ability for bands/musicians to scam their fans. If a band or musician has been documented being shady with these sorts of things before, you’ll want to think twice before you donate. It’s not something that happens often, thankfully. But it’s something to keep in mind before you donate to an unknown band with a few cool perks.

*Please don’t charge $600 for a fan to be a roadie for a day.

*Probably the biggest issue I have with crowdfunding campaigns is when a mid-tier band is doing something ridiculous, like including a “perk” for $200, which includes a 30-minute Skype session and a signed CD, or something along those lines. To me, that’s straight-up highway robbery, and isn’t something that should be included.

*Keeping prices reasonable is something I see bands struggle to do often, and it’s often a delicate balance between charging too much, or charging too little. But you want to make sure that you deliver on the perks you’re giving people – even if it means 15 handwritten notes.

At the end of the day, the fans are the ones who are going to decide if they really want to hear your new project. The best way to make that happen is to make sure you’re offering something at every price tier – but make sure the monetary amount favors you. Get creative and make sure your fans are getting both a great product and an awesome perk. And please don’t charge a ridiculous amount of money for a perk. A 30-minute Skype session or 3 rounds of bowling for 2 aren’t worth $500 – and you know it.

What do you have to say about crowdfunding? Have you had success with a campaign of your own? Opine in the comments below.