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KnowTheMusicBiz.com » Biz Blog » An Argument Against Fan Funding by Brian Hazard

An Argument Against Fan Funding by Brian Hazard

Let’s be honest. You don’t need the money.

Anyone can make a record for next to nothing these days. Almost any other hobby is more expensive: photography, mountain biking, even video gaming. When a teenager singing into a webcam gets exponentially more views on YouTube than your latest “professional” video, the answer isn’t more money.

You’re just not there yet.

(hey, don’t feel bad – I’m not either)

Tracking at Abbey Road Studios won’t get you there. Hiring T-Bone Burnett to mix your album won’t get you there. A full-day mastering session with Bob Ludwig won’t get you there. 10,000 pressed CDs with 18-page inserts won’t get you there. A $5,000 promotion budget won’t get you there either.

No matter how much money you throw at your project, we’re all limited by a stubborn principle called free market pricing. People are only willing to pay what a product is worth to them, not what it costs to produce. The intrinsic value of music is in free fall, and people won’t pay for it if they’re just not that into you.

So why are musicians flocking to fan funding (also known as “crowdfunding”) sites like Kickstarter, Sellaband, Slicethepie, PledgeMusic, and artistShare in droves?

My guess is that they figure “why not give it a shot”? Well, I’ll tell you why not, and offer a better option.

  1. It’s dishonest. I’m simply not willing to pretend it costs thousands of dollars to put out an album. If you can’t sell 100 CDs at $10 to pay for replication, make CD-Rs at $2 a pop, produce them on-demand, or go digital-only. Effective promotion doesn’t necessarily come with a price tag. And really, why should your fans pay to promote something they already bought?
  2. They own you. By entering into a partnership with your fans, you become accountable to them. Until you follow through on your promises, you no longer call the shots. As Hugh McLeod explains in Ignore Everybody, “The sovereignty you have over your work will inspire far more people than the actual content ever will. The best way to get approval is not to need it.” While some may actually like the added pressure, it comes with a loss of control.
  3. You could fail. Publicly and humiliatingly. Everyone will get their money back while you walk away empty-handed. Your fans may conclude that either your goal was too ambitious, or just maybe, your music isn’t as good as they thought is was. Your failure functions as a reverse testimonial. And then what? Are you really going to dump the whole project? If not, why hold it hostage in the first place?

We’re all adults here, right? If your project is so promising and you can’t scrape together $1500 from your “real job,” you could always write up a business plan and get a loan from the bank. Then again, they may just chuckle and offer to raise the limit on your Visa.

Fortunately, there’s a way to reap all the benefits of fan funding with none of the downsides: take pre-orders.

You can still create tiers with personalized extras, like phone calls with the artist, studio attendance, or a custom song. If you accept payments directly, you earn an extra 10% that would otherwise go to a third party. You can create a plan that scales with your goals (“if we reach 100 pre-orders, I’ll press CDs and all digital album sales will include physical CDs as well”). Or you can wait to add tiers until you reach certain milestones, so you don’t promise anything you can’t deliver. Best of all, you’re not locked in to anything. You can adjust your approach as you go based on fan response.

Taking pre-orders puts free market pricing on your side, by allowing you to create only what you need to fulfill demand. Best of all, there’s no “goal” to reach, so you keep every dollar. Risk is no longer a factor.

When is fan funding a better choice than taking pre-orders? What can an artist do on a fan funding site that they can’t do on their own? Let me know in the comments!

Written by

Brian Hazard is a recording artist with sixteen years of experience promoting his eight Color Theory albums. His Passive Promotion blog emphasizes “set it and forget it” methods of music promotion. Brian is also the head mastering engineer and owner of Resonance Mastering in Huntington Beach, California.

Filed under: Biz Blog

  • http://www.facebook.com/davidbrose David Rose

    Great points Brian! All true words:

    “Tracking at Abbey Road Studios won’t get you there. Hiring T-Bone Burnett to mix your album won’t get you there. A full-day mastering session with Bob Ludwig won’t get you there. 10,000 pressed CDs with 18-page inserts won’t get you there. A $5,000 promotion budget won’t get you there either.”

    Fan funding sites won’t get you there either. Writing great songs and building strong, direct relationships with fans is the absolute best place for artists to focus their energy and efforts.

  • Jeff Schad

    “Fan funding sites won’t get you there either. Writing great songs and building strong, direct relationships with fans is the absolute best place for artists to focus their energy and efforts”

    Well said, David. The marketing and attention it takes to really bond with fans is crucial these days. There are many more intricacies to it as well, given the advancement of social media and the changing nature of the music industry.

    And I wholeheartedly agree that music does not marry well with fan funding. Either ya got it or ya don’t, and no amount of money spent can do much to change that fact.

  • Mistydawn

    It’s great to see someone talking about the downside of “crowd-funding.” I’ve always been too apprehensive to use it myself, party for the humiliation factor you mentioned above and partly because I simply need to be in control of my own schedule on a project. I am releasing a project right now that was funded through a hodgepodge of donations, grants, website ad sales and a loan! But at least this way, I’ve been able to keep the schedule flexible to allow for the inevitable little delays that happen over the course of releasing a compilation album on a national scale.
    Don’t get me wrong, I don’t think crowd-funding is always a bad thing. Those sites can be used to essentially take pre-orders for an indie who doesn’t yet have “shopping cart” functions on their web site or who are not set up to take credit card or pay pal transactions.

    But another point that I am curios about is over-saturation of those “crowd-funding” sites. It seems to me that the more people use them, the less they will work. When kickstarter first began, your page may have been one of 200-300 bands asking for money… now you are one in thousands. Has anyone seen any trending data on that? Is there a lower percentage of artists completing their funding requests now compared to the early days of kickstarter?

  • http://colortheory.com Brian Hazard

    Great point. The novelty has definitely worn off!

    My big gripe with the model is that you are pre-selling an exclusive experience, shutting out those who don’t jump onboard during the campaign.

  • http://www.facebook.com/erik2 Erik Peterson

    I think too many people are looking at ‘crowdfunding’ in terms of money, when it really is only a small part of the process. If you look at it in terms of community, experience and engagement; it’s a brilliant concept.

    While I agree that great music and not being there yet are major contributing factors, I disagree that it’s dishonest or all about the money. And worrying about the risk of failure shouldn’t even be an issue as an artist. I mean, no guts no glory, right?

    Hopefully David doesn’t mind me posting a link here. This is a short article describing the non-monetary benefits of ‘crowfunding’: http://www.socialedge.org/blogs/tapping-the-crowd/archive/2011/01/25/its-not-about-the-money

  • http://www.facebook.com/davidbrose David Rose

    Hey Erik – Thanks so much for contributing to the discussion. Your comments and links are always welcome here!

  • http://www.unitygain.dk Karsten Viese // Unity Gain

    Yes my friend, finally a music blog that makes sense in these “10-ways-to-do-this-and-that” days…

  • Kate

    I agree. I have disliked the “Fan Funding” movement from day one. As the author points out, you can “produce a record” (maybe not a multi-platinum record, but something that your true fans will purchase) for very cheap these days. A person or band with normal income levels could easily put together an EP in a local studio or home setup, have a friend draw up some artwork, and reproduce it easily – I have seen it done. I believe that if you have a product that is worth producing, and people want it, you will put your own hard work and money into doing so, and reap the rewards when there is a line at your merch table. After that, you will hopefully plan well business-wise and build up a fan base so that the next album isn’t such a struggle.

    The other part of it that I don’t like is that it takes away the “otherworldly” effect that comes with being a recording/performing musician. I can’t even imagine the people that I looked up to as musicians when I was younger asking the fans to pay for the creation of their albums (whether they were broke or not). There is a certain pedestal that a lot of people want to put rock stars on – it gives them something to experience that is outside the realm of “normal”, and gives them something to aspire to. If you admit that you can’t even pull together a few thou (if that) to record and produce your EP, that whole thing is right out the window.

    Having a band that is going to release material in the hopes of having a career in music is like starting a small business. Maybe your family chips in, maybe your close friends…but you don’t ask potential customers to give you money to create a product that you are pretty sure they might want when it is eventually done. You put your money where your mouth is (whether you have $500 to spend or $50,000), and then if you have created something that people care about, and you have put the effort into letting people know, you reap the rewards.

  • Arron Luther

    Perfectly put!!!! I’ve just spent the last 18 months writing and demoing songs for what I hope will get me a record deal. I’m a massive believer in if people want it they will buy it and a record label will have a pretty good idea of if people are gonna like it or not and therefor pay for it.(of course there are some exceptions, before someone shouts BEATLES) The problem I think is a huge oversaturation of bands and artists that are writing songs nobody wants to buy and these are the people saying the record business is dying.Just accept it people dont value your songs enough to buy them. Im sure someone like lets say Taylor Swift is thinking well I’m doing O.K in this dying business both in selling records and concert tickets because like her music or not she’s putting out stuff that people in there millions actually WANT!!!!!

  • http://cameronmizell.com Cameron Mizell

    Brian, nice argument here. I agree with you 100%.

    My last album was done and paid for out of my own pocket, but I ran a pre-order before the CDs were ready to ship. Every pre-order got an immediate download, and using various pricing tiers with different bundles I actually averages about $30/transaction.

    In 2009 and the beginning of 2010, I supported 5 bands through Kickstarter or Rockethub. All of the fundraising efforts were successful, although 4 months into 2011 I’ve only received 1 CD and haven’t even heard any music from the other projects. One person actually told me that he basically blew the $9,000 on rent, and he’s started other crowdfunded projects since that one.

    I guess my point is that it’s unnecessary and just creates a set of expectations from fans that most independent artists aren’t capable of managing, regardless of how much money they have.

  • http://profiles.google.com/bebekashmir Drew Pluta

    For the most part I agree with the post with exception to point #1.

    Some of the things you get by paying for a recording outside your home and involving outsiders are the real proving factors in the end product.

    Things like;
    -A professional opinion to balance your decisions against. [A good producer can fix a misguided or muddled production.]

    -Experienced technical execution so that you get to be an artist and not an engineer. [A bad vocal mix/recording can make a good singer un-listenable.]

    -Much better equipment and facilities than you can afford or manage at the DIY level. [A proper room and decent mics will transform a drum recording! Not to mention great mic pre's and a decent channel strip.]

    None of this requires a 50K budget but it does require some smart spending. In the end you’re increasing your chances of creating a product worthy of selling.

    I personally like doing all the pre production at home and then going to a modest studio for drum and vocal production. Then return home with the tracks for touch ups and final mix. Then there’s mastering. In almost every case you’re going to need to send your mastering out in order to get a professional finish.

  • Kate

    That is definitely true, and I myself paid (out of my own pocket from my day job) for my album to be professionally produced and mastered. I don’t think the author’s point was that it doesn’t take money to make a professional album, which it absolutely does. I think that the point was that if you don’t have the money to make a pro album, there are other options besides begging for money from the general public in an attempt to do something that might be overkill, depending on the needs of your band at that time.

  • Matt

    Interesting. I do think you have a point. However, I think an interesting counter-example was that of Matthew Mayfield. He offered previously recorded music, as well as studio memorabilia to fans as “product” that they could pay what they wished. One offer (though I don’t think it was ever taken up), was for a fan to pay $1000 to have Matthew sing one of his songs live as a first dance song at their wedding. While I”m not sure how many of these fan-funding projects offer these sorts of things, I believe it makes it quite legitimate. You aren’t giving something for nothing – you pay what you believe the product is worth to you. And then, as a result, you eventually recieve a new product that is more professionally done – something that is often out of the budget range of independent artists. As was mentioned, I think you downplay the effectiveness of some of the more expensive measures a bit too much.

  • http://colortheory.com Brian Hazard

    Good article, but the same should apply to a campaign on your own site. I agree it doesn’t have to be dishonest, but most I’ve seen overinflate the costs of producing a CD.

  • http://mikeborgia.com mike borgia

    Well stated Brian and a clear point at that. Fan funding is actually quite silly. Especially if pre-ordering can be done by anyone as well as creating incentives on your own site using paypal. Those Fans fundng sites have simply found another way to make money from artists and their fans by creating a platform to make it easier for artists to reach out to fans, but I find it harder and more of an embarrassment to success. What is silly about it, is this is something bands have been doing for years and years without having to give a cent to these companies who pride themselves on it.

  • http://colortheory.com Brian Hazard

    I find myself torn between the mystery of the bands we admired growing up, and the current trend towards total transparency. I shared every step of the construction of my last album on my site, probably the same way an artist would do on a fan funding site, and found that participation and enthusiasm waned about halfway through. Afterwards I surveyed my fans, and many said they’d prefer to only hear the final product. I hope to find a happy medium this time around.

  • http://colortheory.com Brian Hazard

    As a mastering engineer, I agree! :)

    But there’s a sweet spot in value vs. expense. That’s why I cited such extreme examples (T-Bone, Bob Ludwig). Some artists believe that if they only had producer x, they’d be a star. My point is that a limited budget doesn’t necessarily equate to an inferior product.

  • http://www.facebook.com/erik2 Erik Peterson

    That’s a shame you got burned by the projects you supported. That could be a real problem for the future of this model.

  • http://colortheory.com Brian Hazard

    Wow, that’s an eye-opener! I can tell you that for me personally, the pressure to deliver a product worthy of the hype I’d have to dish out to get it funded could very well hinder my creativity, and certainly my willingness to take chances. It’s more fun to follow my muse than to deliver on an obligation.

  • http://colortheory.com Brian Hazard

    Fair enough. Other artists offer to come over and cook dinner for you, or just hang out and go bowling. Those type of offers don’t match my vision of a recording artist, but to each his/her own. Times are tough!

  • http://colortheory.com Brian Hazard

    Thanks for the kind words Arron! We certainly are all overwhelmed with music and other forms of entertainment these days.

    While I agree that great songs are the root of success, I don’t think chasing a record deal is the answer. I’d rather be accountable to my fans than a label.

  • http://cameronmizell.com Cameron Mizell

    Well, I might be out $100 or so for now, but the people who don’t deliver are out much, much more if other supporters feel the same as me. That’s the real issue. Is it worth losing fans (or friends) over $30?

  • Cheryl B. Engelhardt

    I successfully raised $25k for my album. I do not have a gigantic fan base. It’s totally possible to do this on your own (not using a third party site- i agree on this!) I am about to post my own blog about this process at http://wwwLivingOnGigging.com, but for now, I’ll say that I disagree on all 3 of your points and the solution you offered. I don’t know what kind of records you’re producing, but to get decent musician (my band of 5 years), studio time, and mixing, you NEED to shell out some cash if you want it to be somewhat marketable and competitive. Second, be accountable- no one owns you, you’re not going into a publishing deal. If you said you’d mail them brownies and a demo mix of the single, then do it. If you don’t have integrity, then yeah, you’re gonna run into problems. Do what you said you would do and do it well and in a timely fashion. The “better option” you offered (taking preorders) doesn’t get fans emotionally invested- they get excited when they know they are helping something creative and are more likely later to help the buzz around your album, and be more likely to come to shows. The payoff is WAY greater than just asking for money for the CD upfront (and then you don’t even get it later- way bummer). Trust me, after a year of taking donations (i released one song a month, each one fan funded) I had to get over my own personal money issues/ confidence issues, etc etc, and accept that people really truly want to be a part of this process. You can’t be mousey about this, you can’t play it safe.
    ~Cheryl

  • Vallescream

    If you have The Discipline of a Shou-Lin Priest…or a St Benedictan Monk ..and will not spend the money..on rent ..Guitar Center ‘musical instrument whims”,Red Lobster,Starbucks noon & night,Trips to Austin,New York,L.A. to “consult”producers & engineers…then go for Crowdsourcing Fundraising etc….

    .otherwise its just better to float your own ..record boat and pay as you go out of your own pocket…yes it hurts..your wallet and its a long ruff road….but ..owning up to strangers expectations…and relatives…expectations…wont hinder your creative output..or artistic endeavor…

    I have a power trio and we sound very 1970′s and we are older we arent young in our 20′s and 30′s anymore…dont think we would appeal to …hipsters…looking for a fresh young…face…or sound…but rock we do and songs we have…what we lack is cash…and thats the hardest thing to get…but little by little we are chipping away at that cash stone…another good idea is to follow the Grateful Dead Models of business..Phish..Widespread Panic…and some of the punk bands…then I think a band will be in really good shape..

    I believe crowdfunding will help if you start touring and your name is pulling in steadily 100 to 300 people per show and the whole tour is looking like your clubs and beer joints are overstuffed with people who came to see you…and alot of people could not get in to see you play…at that point a band reaches a critical mass…you need roadies…you keep running out of t shirts and cd’s and people are begging for anything …merch related and you keep running out cuz the cash flow ..is running a little under your intake.but you are making a profit..and you are..being frugal…its just you need a little bit more cash..to bring it up a notch….then I think crowd funding is a good idea…and you can quite possibly pay back all those fans !

    thank you
    texas joe valles
    http://www.vallesflyingmachine.com

  • Freddy L

    This is a load of crap it DOES cost a lot of money to get your album recorded properly, packaged with a decent looking cover.. Mastering costs over $100. Sure you can run it through some crappy program but who will ever play that on their radio station? Sure you can record something with your iphone and plaster it on Youtube but that’s very different than creating a professional sounding record that you will be proud of.

    If fans want to donate to an artist I think this is a civil gesture and everyone will benefit. The artist will give all their donating fans free merch and music, and the artist can focus on creating a solid record without a concerned budget.

  • Freddy L

    over $100 per song**

  • http://www.facebook.com/mitch.ruth Mitch Ruth

    Thanks man, I appreciate that…I did a little messing with PledgeMusic and in the middle I realized there was no reason to include them in what I was doing…. I’ve put off my project a little and practiced some more. Far more beneficial and fun…

  • http://twitter.com/MarkCStafford Mark C Stafford

    I pretty much agree with the article.

    My EP is getting release electronically via iTunes and Amazon and anyone else that sells MP3s, through an aggregator. I’m UK based, so I’ll do a bit of conversion on the maths :)

    - I tested the marque/first track on Last.FM for less than 100 bucks, to check the market perception of that track.
    - I then paid the aggregator 40 bucks to join their service.
    - I joined a royalty collection site for free (who also work with advertising agencies and TV).
    - I produced a website (inc two years hosting costs and software) for 100 bucks.
    - My press packs cost 3 bucks a shot including postage with a lightscribed CD-R. So far sent out 15 of those.
    - I’ve also marketed myself through MySpace and Soundcloud, plus some viral marketing by joining other “hobby and interest” forums and plugging myself (not blatantly!). For free…
    - I’ve plugged into my companies newpapers and got a free article (30,000 readership!)
    - I already has a Zoom R16 and Cubase :) So recording budget was a few bottles of wine :) Everyone knows someone with a portstudio or computer setup – surely!

    I’ve heard other professional recordings and about 10% are better than mine for a significantly higher budget, and the man on the street (the feedback I get) doesn’t care about the odd rough around the edge recording, as you say its the song(s) that matters.

    In this day and age if you can get your songs to the masses very quickly, I’m only in month 4 of a three year plan to get a publishing deal. So far less than $400 bucks spent, plenty of radio play and some local press interest :)

    Its about targetting what little you have at what will achieve the best return, not about asking fans for money (try asking them to pay to come into your gigs, if they don’t, forget asking them to risk money on you music!)

  • Matthew

    Good discussion with a lot of really good points. I’ll submit my 2 cents worth. My professional music career began with a group I have since left as of a year ago. The three years we were together we had regular dates and some cash flow. We did not have enough to spend a large amount in a studio. We spent the better part of a year recording on my pro tools rig in one of our band member’s houses. Little did we know that the record we recorded in a living room would soon get picked up by a label and submitted for a GRAMMY and earning a nomination. We attended the awards and everything last year. We lost in our category, but I can say it was an amazing feeling to know we did it all ourselves.

    Now, fast forward a year… Because of some issues with the main singer in our group, we all left and formed a new group together with the addition of two other guys. This was our chance to really do things how we wanted to from the ground up. The first priority was to get some bookings. We pulled together all of our contacts from being on the road with the previous group and started getting some that were willing to take a chance on a new group. The next priority was our fan awareness. We launched our FB page in August and have reached almost 5k fans in 8 months. We did this by crafting some creative videos that showcased our talent, personality, and determination to be successful. (Because we had NO music for anyone to hear yet) Back to the subject of recording. We were all confident that this new group was going to be far more successful that the previous one. So, we appealed to one of our band member’s grandfather. This happens to be the same one that owns a tour bus and hauls us any time for a great price. We entered into a contractual agreement with him to borrow 20k to record our first EP. We selected the best producer in our genre, and are working with one of the best engineers in Nashville. Both of which are GRAMMY nominated, one is a GRAMMY winner.

    Why would we sign ourselves into debt when we were perfect examples a group doing everything themselves?

    Simple…. Everyone here knows that there is a TON of competition in the entertainment business. We wanted our product to “stand out” in a competitive market. Which includes professional mastering, Brian. (Very important) We wanted to own the rights to our music (as compared to never seeing a cent from it with the labels) We started our own record label. We are focusing on online distribution and when the time is right will negotiate with a major distribution chain for national physical distribution. We have a detailed business plan with specific goals over the next few years and an extremely passionate fan base. Each step has been thought over and processed until we knew we were making the right choice.

    My advice for others trying to get started is to FIND YOUR MARKET! Spend some time finding where you appeal the most and target that area. It’s like a friend of mine used to say, “find your niche and ROCK it!!” We have a very promising taget audience and have been making specific plans to reach them over the next few years. The EP is in the final stages of production and we are VERY proud of what we are putting out.

    We are a perfect example of both models. It just involves a careful review of your resources and some detailed planning. Don’t over extend yourself. Pick a plan that will show the best return. There are SO many things to consider when building your business plan, but having no plan is the worst mistake you can make. Thanks for this post and keep up the great work!

  • Electricmf

    good ideas don’t cost much..that’s the point… ;-)

  • Poprock

    Troy Hagerman Music: music is a business it’s not free , we purchase devices in order to find and hear music . Though with music as catchy as some great songs it becomes free in your head , it’s stuck , you may pay a hypnotist to stop it but it’s free, the music, in that way .. Achronika, w/ song “dON’T gET mE yET ” .. advertise your music on radio for one week a 30sec spot ought to suffice (can this be done) , get back to the early eighties and carry a ghetto blaster and walk with it obliviously , when someone says turn that down do so , others may ask you to turn it back up ?

  • thisisbray

    KickStarter, at least, doesn’t charge fans for funding unless the total goal is reached so a donor can’t get burned that way. There are many ways to fund albums and this one works for a lot of people. You know what happens when fans fund your album? You get to make the album you want because they like you. They don’t like radio-friendly tracks, they don’t like anything that isn’t exactly what you want to put out. They want to help you make an honest record.

    If you get burned by donating money to KickStarter or something, that sucks. But it works, like anything works, with honesty from the artist. I have produced three albums now for artists who raised their money from KickStarter. It works because we were able to actually afford amazing, professional musicians to play these songs at a high level and pay them fairly. We use the money solely for the recording so that the artist doesn’t have to go out of his/her pocket in order to fund the record and somehow still pay rent and live.

    Your notion of “just go get a loan” is incredibly outdated and totally implausible for most up and coming artists. Do you have any idea how difficult it is to get a loan just for a house these days!? Let alone for an artistic endeavor. Be realistic here.

    Risk is ALWAYS a factor with commercial art. There is always money being spent that may not be recouped. The point is the people donating to your cause merely want the art to exist. Its existence IS the recoup and that is a beautiful thing. These crowdfunding programs enable art to exist at a level that used to only be possible with the funding of a record label or a long, established career and even then, there was often a compromise of the artist’s integrity because they had to mold their music to fit a model that would be profitable for the label.

    Profit is not an issue here and if people want to merely support art and help an artist they like, who affects their life in a positive way, to make more of their art, that is beautiful.

    People misuse good business models all the time. That is not a good reason to dismiss the model because it does work for numerous artists and will continue to work. If your goals are to make the art you want in the best way possible, you need some money and finally you can get it from people that want to support you.

  • http://www.canadiantourismblog.ca JaimeHorwitz

    Good article Brian. You make very good points, but, in my opinion, they’re somewhat flawed: First, “Anyone can make a record for next to nothing these days.” Yes, anyone can make a record for next to nothing using Garage Band or even Pro-tools. The question is how good a record will it be? I’ve had the experience with one artist producing good quality demos at a small better-than-home studio and producing tracks with professional musicians and a professional producer at a fully equipped professional studio and the difference in sound and quality is more than dramatic (the difference in cost is also dramatic). So while “Anyone can make a record for next to nothing these days,” not everyone can produce high quality records. While crowdsourcing presents challenges for both artists and fans, it is an appealing model – perhaps not to fund the entire project, but to complement it.

  • http://www.madalynsklar.com Madalyn Sklar

    Hey Brian, you’ve made some great points here. I agree that taking pre-orders is the best approach. I know many indie artists who’ve done this successfully way before Kickstarter. No stress of goals to reach. No risk. Put out great music, open a PayPal account and get your fans involved in the process. It’s win/win.

    I will admit, when Kickstarter first came out I thought it was cool and a smart way for indie artists to get their fans to support. But I think some bands can get in over their heads, raising a lot of money and blowing it to pay for non-music items like rent, as Cameron mentioned below. Of course that can happen if you’re getting fan support on your own without a third party site. Use common sense. It’s not worth losing fans so play it smart.

    Cheryl Engelhardt and Mike Borgia also make great points. Taking pre-orders on your own and using PayPal allows you to keep all the money rather than giving up a % to these fan funding sites. Who needs a third party site when you can do this yourself? But on the flip side I do understand that many artists out there need the help. If you’re willing to give up a %, then go for it.

    I think crowdfunding sites were a cool idea that reminded us to come up with unique ways to get fans to help support and fund your projects. I will admit I occasionally like surfing on Kickstarter just to read what things artists will offer in exchange for money. I’ve seen some really cool ideas.

  • Cornelio

    There are a lot of great key points. However, Let’s look at it from a fans perspective. A true diehard fan will pledge their support either through your personal website of Crowd Funding. In both dynamics the artist has a responsibility to deliver “pre-ordered content”.

    Since free market pricing is the issue, the conversation should lean towards artists learning how to maximize their product offering. I think Fan Funding sites have motivated artist to be more creative in the bundling approach and provided fans with a unique support experience. It builds a certain level anticipation as long as the artists delivers on the promised goods.

    Unfortunately in every possible good there are people with bad intentions. People using these site to pay their bills is ridiculous and artist with no true business savvy need not participate in the Fan Funded business model. Support has to be earned either way, so whether you’re pre-selling or Fan Funding, content delivery is most important to build trust.

    As far as the cost of production, I would have to disagree, “little or nothing” is not the same story for everyone. For me yes, I can produce and write my own songs and get a great mix for “little or nothing”. However there are tons of artists who need resources to pay and their “real job” only pays for rent and a rice cake. At this point the Fan Funding business model becomes an option of hope to that artist.

    Thanks Brain.

  • Benji

    Isn’t this a repost? I remember writing a long post about it here: http://www.musicthinktank.com/blog/an-argument-against-fan-funding.html. I think that it’s crucial to differentiate Direct to Fan and Fan Funding as they are two different things. Besides! ALL MUSIC IS FAN FUNDED! (http://www.pledgemusic.com/blog/31-all-music-is-fan-funded-so-why-not-try-something-different) – When has it ever not been?
    Cheers
    Benj

  • http://twitter.com/lauramariemusic lauramariemusic

    I looked into Kickstarter when I was funding my project and really hated the idea of setting a goal for the same reasons you mentioned. I ended up doing a CD pre-order and a “package” pre-order that worked out nicely.

  • Benji

    I agree with you there! Never show the target. It’s not about raising money. It’s about the experience!

  • Marcusvolk

    As far as preordering goes, how many orders do u typically get and how is the offer presented to the fan/buyer? I don’t think I have ever seen a pre order offering online ever?!?! Do u do it at shows mostly, on the spot?

    If u r doing it online, is it a local thing? How do u market it without significant cost? How do u get your product to pop up in front of someone before another product? How do u get legitimate online impressions (viewings of ur product, link, you) that turn an order?

    Basically Its hard for me to believe that people r getting pre orders from pretty much strangers, without mega marketing costs and online ad costs ( paying to spotlight or push ur impression).

    It makes it seem like those orders r coming from friends, family, one degree extension of that group, maybe the random stranger, at shows, or u r in a very unique an supported genre ( the only one I can think of that operates as it does) Religious.

    Please let me know ur thoughts n how this works, thanks!

  • http://colortheory.com Brian Hazard

    Glad to hear that worked for you, and I won’t argue with success! In a perfect world, you’d make enough from your previous releases and gigs to finance the new record, but I know that’s not always how it plays out. I’m not sure why you couldn’t structure pre-orders exactly like a fan funding campaign though. That’s pretty much all most fan funding campaigns are: pre-orders plus gimmicks (IMHO).

  • http://colortheory.com Brian Hazard

    Depends on what you mean by “a lot.” If you can sell 200 CDs at $10, you can afford mastering, graphic design, and 1000 units. If not, skip the CDs and go digital only until you build up a bigger following.

  • http://colortheory.com Brian Hazard

    You’re off to a flying start Mark! I’d recommend Jango or SoundOut over Last.fm for your initial focus group. I’ve written articles on all three at http://passivepromotion.com if you’ve got the time and inclination.

  • http://colortheory.com Brian Hazard

    Thanks Matthew! Great advice. I confess I don’t have much of a business plan, because the business seems to change on a day-to-day basis. I just come up with wacky ideas and try to find time to execute them.

    It’s interesting that you’ve chosen to invest in a big name team after proving that you don’t need to spend a lot of money to create a recording worthy of a GRAMMY nomination. Not that I wouldn’t want to work with a dream team if I had the cash lying around, if only to look over their shoulders and learn from the best!

  • http://colortheory.com Brian Hazard

    The “just go get a loan” thing was a joke. You wouldn’t approach a bank for a $1500 loan. My point was that you could make a record on that small a budget. Obviously that assumes you’re not hiring outside musicians.

    I’m all for fans supporting artists, but I’m not so sure it requires a mediator.

  • http://colortheory.com Brian Hazard

    True, making a quality record at home requires some serious production skills, but you don’t necessarily need to hire a team to do it. One alternative is to hire a pro for mix consultation, as several of my clients routinely do before mastering. Sometimes clients hire me to mix just the “hit single.” Then I create a PDF file detailing every plug-in I used in the mix and why, which serves as a road map for mixing the rest of the album themselves.

    Anyway, sorry for the sales pitch ;) . My point is there is a middle road between recording in a pro studio and DIY.

  • http://colortheory.com Brian Hazard

    Thanks Cornelio! The idea is you mix your first project for “little or nothing,” then build from there.

  • http://colortheory.com Brian Hazard

    Yep, it’s a repost! If I had time to write it over again, I’d define my terms from the get-go. I know you disagree, but I consider PledgeMusic to be a fan funding site.

  • http://colortheory.com Brian Hazard

    Benji and I discussed this topic at length in the comments of the Music Think Tank article he linked to above (which is technically a repost too, by the way – the original appeared on my Passive Promotion site).

    My concern is that you are selling an exclusive experience. Once the funding campaign is over, you’ve effectively shut out potential fans until the record comes out. I prefer to create an inclusive experience on my own site, where anyone is welcome at any time.

  • http://colortheory.com Brian Hazard

    I sold about $3000 worth of pre-orders of my last album on my site, without any marketing costs or ads.

    Here is the post where I announced the pre-order:

    http://colortheory.com/the-sound-available-for-pre-order

    And here is where I detail the sales figures for that quarter:

    http://colortheory.com/sales-q3-2010

  • http://www.facebook.com/profile.php?id=610575354 Neville Elder

    I did it on a another non music group project it was successful but made me uncomfortable. I see so many people ‘kickstarting’ now that I can’t help thinking fatigue will set in.
    A friend of mine gave me a free session in a studio that got me started and then I sold some fancy old cameras I never used to pay for the rest of it. I think if you’re willing to make music happen you’ll make a sacrifice. Otherwise it feels a bit like busking with out the songs. I LOVED those cameras….I blogged about it at No Depression..

    http://www.nodepression.com/profiles/blogs/the-cost-of-loving-recording