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Sep 2, 2009

Pros and Cons of the Kickstarter Model

Who Needs a Label When Fans Fund Your Recording?

Allison Weiss's Kickstarter Page

For most musicians, the funds invested in creating a record usually come from a record label, money made from merch sales or out-of-pocket expenses paid by the artist. Yet, as the Internet evolves, so do money-making ideas. With so much competition out there, musicians are at the behest of their own interests for new ways to raise funds. Kickstarter.com is one way that DIY music is keeping itself afloat, even in hard economic times.

Kickstarter.com is a fundraiser website devoted to creative projects in need of financial support. First the artist must submit his/her project for approval by by Kickstarter. Once the project page goes live, the project creator sets a goal for the amount of money needed and the deadline by which those funds must be accumulated. It is up to the artist to promote the fundraiser and direct people to the project page hosted on Kickstarter.com. Most artists offer incentives to entice funding, promising things like limited editions of songs, invitations to BBQs or a mention in the liner notes, depending on the amount donated. Supporters pledge their donations on the website, but Kickstarter.com will only collect those funds if the goal amount is met before the predetermined deadline.

A strange phenomenon to follow in its progression, online fundraising websites such as Kickstarter.com and the similarly structured Fundable.com present both new solutions and new quandaries in the already tumultuous music market. At their best, these sites provide a simple way for broke, right-brained thinkers to toss out the nets to those wishing to support creative projects. At its worst, it’s a faux not-for-profit without any accountability to its supporters. Whether Kickstarter is supporting artists, musicians and the like, or a form of cyber begging has been created, is entirely subjective.

While Kickstarter is not only for musicians, some of its most recent and notable successes have been Athens bands. In fact, many Athenians first heard of Kickstarter when local acts Allison Weiss, Chris Mckay and the Critical Darlings and Venice Is Sinking signed on to fund the recording and/or production of their albums.

Superficially, Kickstarter and other websites like it appear to bring DIY to a new level. So far, the model seems to be successful because the concept is entirely accessible. Most creative projects need funding. People want a chance at philanthropy which they can afford. Fans want to show their loyalty to their favorite bands. Plus, with the advent of MySpace, Facebook and Twitter, bands have already become acclimated to interacting directly with their fan base and keeping them informed as quickly as possible (lest their fans forget them). Bands are now expected to be self-promoters and frequently turn to their fans for support—whether it's inviting people to a show, recruiting extras for a music video or even making decisions about their creative direction. So why not tap that market for financial backing as well?

When it works, it works well. Paste magazine, like most print magazines across the nation, recently ran into some harsh economic times. Its remedy was to ask for online contributions from Paste supporters. In return, Paste offered the donor, based on his/her contribution, unreleased songs and the chance to win autographed merch from various high-profile bands. Paste’s fundraising turned out to be incredibly successful, collecting $250,000 from over 10,000 donors.

It sounds like a cut-and-dried way to raise money for individual projects, but creative works are often unpredictable and bad things can and do happen. Hope for Agoldensummer’s Claire Campbell knows all too well the potential drawbacks of collecting donations to fund a record. Although her band didn't use Kickstarter specifically, Hope for Agoldensummer did solicit "pre-orders" from fans so the band could afford to record Ariadne Thread.

After what seemed to be a successful fundraiser, the band began recording at the pricey studio of its dreams. However, in the midst of recording, two members chose to leave the band and insisted that their contributions be erased from the sessions. The remaining members had to start the recording process all over, and a year's worth of work was lost. “It took another year plus going into credit card debt to get the album finished,“ says Campbell. “We were able to placate some folks by releasing an EP that was free to those who had pre-ordered. But, towards the end of two years, many of our fans were pissed, as it had been years since most of them first contributed.” Worse still was the fact that after all of that time, some of the fans' addresses changed and the final product couldn't be delivered. “Though we sent out emails beforehand asking for address changes," Claire continues, "many people who had moved did not respond. So, for months afterward we would get returned-to-sender CD packages.” Claire’s hard-earned advice to bands: “Wait. If you can, hold off taking money until you are absolutely sure you can give a product.”

It is through supporters that projects come to fruition on Kickstarter and other fundraising sites, but how are these fans considered? Kickstarter and Fundable projects do not have to disclose how each dollar helps fund projects. This leaves donators vulnerable to loss should the project they help fund fizzle out. CEO of Kickstarter, Perry Chen, believes that the site is self-regulated. He goes on to say that in relation to Kickstarter’s long-term goals, he believes that “this is where commerce is heading. Real connections between people.”

Perhaps the fate of online fundraising is all in the hands of laissez-faire capitalism. This model is still in its infancy (Kickstarter was just launched in April of this year) and will surely evolve through a series of trials and errors. Whether or not the idea of online fundraising is appealing, it’s a force to be considered. What does resonate is the spirit of philanthropy that sites such as Kickstarter and Fundable seem to inspire. It can certainly be said that there are idealists out there trying to fund their dreams, somehow. That, in itself, is inspiration for the creative force.


Allison Weiss' Tips on How to Make the Most of Your Kickstarter Campaign

Allison Weiss

When local musician Allison Weiss launched a Kickstarter campaign this summer, her goal was to raise $2,000 in three months. She ended up reaching her goal in less than eight hours! By the end of her campaign, she had surpassed her goal by a staggering $5,000. Obviously, this lady knows how to tap into her online supporters. What's her secret? Here are her suggestions for a successful Kickstarter campaign:

1. Be Creative
The more creative the project, the better. Make sure your idea is new or innovative, or come up with a new way to raise the funds. Human beings want to be entertained, so do it!

2. Great Pitch Video
Make your pitch video as short, interesting and funny as possible. Put it up on YouTube in addition to your Kickstarter site. The more engaging the video, the more likely people are to spread it around.

3. Awesome Prizes
Come up with interesting prizes and rewards to offer. Get creative with it and really think about whether your prize is worth the donation. Make sure it's something you can actually do. Also, offer group prizes—i.e., when you reach a certain point, reward everyone who has donated. This will encourage people to tell their friends to donate if they know they can get something out of your success.

4. Get a Custom URL
The Kickstarter website doesn't really have the best options for URLs. If you have a website, get your webmaster to create a domain specifically for your fundraiser project. The easier the address is to remember, the more likely people will donate and tell their friends about it. You can also use a URL shortening service like TinyUrl or Bit.Ly.

5. Ask for help!
Promote the hell out of your project. Send out information to your mailing list. Text message your friends. Twitter, Facebook, blog about it. Tell the local papers about what you're doing. Make flyers and hand them out. Make sure you spread the word because every little bit gets you closer to your goal!

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