What is Music Crowdfunding?
Published Friday, January 16, 2015
You picture starving musicians doped out of their mange ridden heads begging bowl in one hand 3 string guitar in the other, right? Wrong… Crowdfunding is not charity! Well, ok, there are four types of Crowdfunding and two of them do indeed resemble charity but thats not what Crowdfunding Music is about at all, here we go:
Rewards Crowdfunding – this is by far the most common type of crowd funding especially in the arts space. The rewards are rarely tangible in value and almost always notional or emotional. A singer may call up a person’s mother on her birthday or for enough funding may jam with a funder at the after party. Cant put a price on an autograph? Well no, its gonna cost a small amount but to the fan, its priceless.
Equity Crowdfunding – at its core this is nothing more or less than an investment but closer to VC style than share trading. One will see a product or service being offered by a person or company and fund it in leu of shares in the profit and ownership. Unlike a VC who is usually one of a few investors with some control over what goes on and unlike the stock market where the connection is all but anonymous.
Lending Crowdfunding and Donation Crowdfunding are more for causes that deserve support rather than business cases or creative projects. If you lend or give for no profit or return its charity no matter what way you look at it. Nothing wrong with that at all just should not be confused with Equity or Rewards Crowdfunding that offer something in return for money.
When you Crowdfund Music you do it for one reason alone, you do it because you are a fan of the artist. Thats why you can justify an over priced T-shirt or expensive festival trip, because as a fan you are buying an experience. Music Crowdfunding is about selling an experience.
To know more follow this link to a comprehensive list of Crowdfunding platforms all over the world.
Also in India we have the wonderful Crowdfunding platform Wishberry
But my all time favorite Music only Crowdfunding platform has to be Pledgemusic which is really not crowdfunding at all, it is Fan Funding…