Finance and funding for music businesses
Crowdfunding for music projects
Many music businesses use crowdfunding to engage with their fans and find the money for their projects. It is one of the best tools at their disposal to raise funds to:
- record, produce and tour their work
- promote their music to a wide audience
- develop and grow their business
- invest in professional development and study
- invest in equipment, set up a studio, etc
Crowdfunding can be a way of raising finance relatively quickly, but it is not always easy or suitable for all music businesses and projects. You can choose between different crowdfunding options. See types of crowdfunding.
Can crowdfunding work for your music project?
Before you decide to ask your fans for donations through crowdfunding, it is best to consider a few things. For example:
- your choice of platform
- the amount of money you need
- the audience you can appeal to
- the rewards you can offer
- your marketing strategy - to secure promotion before, during and after the campaign
It is important to set realistic fundraising goals and not be greedy. Create a compelling request, campaign for a specific purpose and work out exactly how much money you will need before you reach out to your fans.
If you don't have an existing following, you may need to build up your audience first before you can ask them for money. See more on how to develop a fan base.
Your rewards and incentives will likely affect how many pledges you get. Think through different pricing options and reward levels, and give your fans a choice. See more things to consider when choosing a crowdfunding website.
Crowdfunding platforms for musicians
Many steps go into planning a successful crowdfunding campaign, but the first one will generally be choosing the right platform for your project.
The most popular crowdfunding websites for musicians include:
Features and funding structures may differ between various platforms, so you will need to research and analyse your options to make sure that you choose a platform that best fits your project, goals and resources. Read more about crowdfunding websites.