Net Gain
Thanks to the
internet, independent musicians are in a better situation than ever before.
Websites like Facebook, Twitter, YouTube, Soundcloud, Bandcamp and iTunes have so
empowered artist-to-fan connections that sharing one’s music with the world has
never been easier to master, from an artistic point of view.
The latest – and
potentially among the most powerful – in a long line of online resources is
crowdfunding. Crowdfunding is a way for artists to secure initial funding for
their projects (via their fans, with the promise of a range of incentives)
without having to take out a loan, apply for a heavily contested government
grant or approach a not-for-profit. It’s leveled the playing field.
“That’s why it’s become so popular,” confirms Rick Chen, co-founder and
director of the first, and largest, Australian crowdfunding site, Pozible. “Basically,
there’s a need in the whole sector,
the whole market, for this to happen.”
Crowdfunding has indeed become a very popular idea. In the past
couple of years it has boomed, with Pozible a prime example. Since its
inception in 2010, the site has helped raise over $11m (a million dollars in
May 2013 alone), hosting upward of 3500 projects with an overall success rate
of 58%. It’s helped aspiring and established filmmakers, musicians, writers and
event organisers to realise their dreams. Little wonder it’s a boom industry.
“I think [that’s also to do with] high-profile artists who have run
campaigns recently,” muses Kate Roseler from Perfectly Write Media Management,
who in March worked with Toni Childs to help her raise over $100,000 for an
upcoming world tour. “Amanda Palmer, Wolfmother, Clare Bowditch … I think those
names have made a difference to people’s awareness of [crowdfunding] and its
viability, its realness.”
The way crowdfunding
works is quite simple. The project creator submits an idea to a site like
Pozible, which vets all incoming ideas, and once it’s given the green light,
the project is made public so that people can pledge money. If the project reaches
its financial goal in the allotted time, all pledges are processed and the
project is deemed successful.
If a project on
Pozible or US crowdfunding pioneer Kickstarter doesn’t meet its target in the
time allowed, no funds are processed and the project is deemed unsuccessful.
However, some crowdfunding sites, like ArtistShare, RocketHub and PledgeMusic,
let the project creator keep whatever funds have been raised, whether or not
the target has been met.
In order to entice
fans to pledge, project creators offer ‘rewards’ based on the amount pledged.
For example, Melbourne nine-piece Saskwatch recently succeeded in hitting their
$20,000 target to pay for the band’s flights and accommodation after they were
invited to play festivals in England and Spain. Their ‘rewards’ varied – for a
dollar, the band would give you a shout-out from their Twitter and Facebook
account. For $50, the band would create a mixtape for you, with a theme of your
choice. At the top end, for a $5000 pledge you’d receive, framed, the pink
dress that lead singer Nkechi Anele has worn at many of the band’s gigs.
“It
was harder to think of incentives in our case, because a lot of musicians use
their funding to create an album, and market the incentive like you’re
pre-ordering the final product,” says Anele. “We were asking for something
completely different, so our approach was to have ‘thank you prizes’ more than
incentives.”
“Valuing each item was hard,” she goes on. “I must admit
there were some items that we based on their sentimental value, like my dress
and the print of our album artwork.”
It’s not just bands who are using sites like Pozible to
fund their latest music-related venture. Pure Pop Records, based in Melbourne
suburb St. Kilda, has initiated a couple of crowdfunding campaigns to raise money
to soundproof its backyard live-music space after gigs there were severely
restricted due to noise complaints. Its ‘Buy a Brick’ campaign has been wildly
successful, showing that you don’t have to have a new record or a big tour to
make this venture work.
Red Rattler, a not-for-profit performance space in Sydney,
have done something similar. It was able to raise five grand over its target of
$40,000 to buy out a portion of the venue itself after two of the space’s
co-founders exited to pursue new challenges. The statistic is made all the more
impressive given that the venue is run entirely by volunteers. It’s a
red-letter example of how effective crowdfunding can be when a project means so
much to so many.
Despite the fact that crowdfunding has only been around in
its current guise since the turn of the millennium, it has steadily evolved
into a viable, long-term funding solution. And where it’s at now is arguably
just the beginning. Chen foresees collaboration between crowdfunding models and
more traditional sectors, with government funding agencies one day
incorporating crowdfunding into their existing grant-application process.
Whatever its future, crowdfunding is literally making
dreams come true on a daily basis, right here and now.
By Samuel J.
Fell
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