Crowdfunding has successfully bridged the gap between entrepreneurship and philanthropy, helping investors, business startups and musicians build long-term relationship for both purpose and profits. Below are ten crowdfunding websites that every artist/band should study to help them in sustaining their music careers.
Instead of giving rewards to contributors, project owners in PledgeMusic gives merchandise such as written music, albums, or audio files. The platform can connect you to third-parties that handle the fulfillment or manufacturing of your goods if necessary.
Advantage: exclusively built for musical projects, making it easier for artists to run successful campaigns.
There are only four major categories allowed on RocketHub including science, art, social good, and business projects, but the subcategories cover a wide range of projects. It has LaunchPad and FuelPad programs with which project owners and marketing partners can work together.
Advantage: the platform works with A&E, so you can expect more exposure. Funding from A&E is also possible.
Disadvantage: not the same reach as larger platforms.
Fees: signing up is free. There is a 4% fee on the funds earned if the project meets its funding goal or 8% if it does not. The credit card processing fee is 4%.
This allows donation-based fundraising for almost everything, including those that are prohibited by Kickstarter. Similar to Kickstarter, however, Indiegogo does not allow contributors to become shareholders or investors.
Advantages: two funding options including flexible where you can keep the earned funds regardless of whether the funding goal is met, and fixed where you can only receive the funds earned if your project reaches the goal. You also get recommendations, a handbook, and how-to advice.
Disadvantages: automated review process, meaning low-quality projects easily get through.
Fees: signing up is free. The fixed funding option carries a 4% fee, whereas flexible funding takes a 9% fee. There is also a $25 wire fee for campaigns from outside the U.S. and a 3% credit card processing fee.
Presumably the most popular platform of them all, Kickstarter enables donation-based funding for various projects including creative products, music albums, watches, art, etc. It is not for personal financing, charities, or reselling businesses.
Advantages: easy access to statistics regarding where the investors/backers are from. It is possible to stay in communication with your fans even after the campaign is over.
Disadvantages: only permanent U.S. citizens with Social Security numbers are allowed.
Fees: signing up is free, but the platform takes 5% of the total funds raised and there is an additional Amazon Payments processing fee.
Patreon is for artists of all kinds including musicians, cartoonists, photographers, and more. It encourages people to donate a steady amount of money on a monthly basis. This is mainly for artists who create regular content.
Advantage: there is a good chance of securing steady monthly income if you create content on a regular basis.
Disadvantage: it is more like a destination platform to earn money rather than a promotional tool.
Fees: it has a 4.9% platform fee and 2% + 30 cents payment processing. A non-profit project allows contributors to give 100% of the donation.
Instead of emphasizing project types, Sellaband focuses on profile creation. Everyone starts by creating a profile filled with bio, videos, song, and gigs. After that, you can create a project and do your fundraising campaign.
Advantage: profile is easy to create just like on a social media website.