If you've been thinking about "crowdfunding" your next project, this guide is a great place to start. First of all, you're already on the right path! The secret to having a successfully funded campaign is doing your research and making sure you're fully prepared before you start. This guide will help you understand the big picture of what goes into a successful crowdfunding campaign, but it will also give you a ton of detailed advice, insights, and tips on how to maximize your results for both you and your supporters. 

If you're still undecided on whether crowdfunding is right for you, the first part of this guide sums up the 10 most critical pieces of information - from having the correct mindset, to strategy, to logistics. Each point will link to a more in-depth explanation, a little bit like a Table of Contents. You can get a very good overview right away, and when you're ready to go deep, just read on.

I hope this guide helps you not only get funding but also discover the opportunity to engage deeply with your supporters and strengthen and expand your fanbase. Good luck!

1. Crowdfunding should be framed as an exchange, not a donation.

Unlike other fundraising efforts, crowdfunding is all about the exchange between you and your backers. Fans aren’t donating or simply pre-ordering the next album, they’re getting exclusive experiences, behind-the-scenes footage, rewards, merchandise, and more. Crowdfunding offers artists the opportunity to build their brand and create a community of engaged fans surrounding their next release.

2. Define your project and tell your story

Every artist wants to make the next great album, so it’s your job to tell potential backers why your project is special. The more unique and personal the story is, the more likely it is to get funded. 

3. Go for a 30-day campaign and the "all-or-nothing" funding structure

Crowdfunding campaigns with the highest success rate are structured using the "all-or-nothing" model and last, on average, 30 days. This creates a sense of urgency that potential backers respond to. 

4. Maximize your budget by offering non-tangible goods and experiences for rewards

Get creative with what you can offer your backers in return for funding your project. Think of unique experiences you can offer that only cost you your time so that you’re able to use their contribution towards the album.

5. Your budget is your best friend

Plan out every step from the start of your campaign through fulfilling the final product and rewards. Show your backers how their contributions will be used and keep track of every expense.

6. Spend the time to make your promo video and pitch the best it can be

This will be the main way you advertise your campaign, so it needs to show who you are, what your project is, and why backers will love supporting you.

7. The first 24 hours of the launch are the most important

Build suspense leading up to the launch to ensure your campaign gets momentum going right away. People are much more likely to support something they see others also supporting. The launch and the first impression you make are critical.

8. Be bold: Know your network and use your contacts

Reach out to anyone and everyone in your network. Consider what your current network of fans and followers looks like and calibrate your project to what you believe you can raise. Be unapologetic in your ask. Remember, you’re offering something special in return.

9. Give your backers the VIP experience

Keep your backers at the center of everything you do. Let them witness your project from start to finish. Treat them to exclusive looks and early content releases. Give them the behind-the-scenes of the recording process.

10. Enjoy the process

Crowdfunding is an opportunity for you to create your next great work while continuing to build your brand and foster an engaged community of followers. No two campaigns should look the same. Figure out what works best for you. Think about what your fans will enjoy the most and build the campaign around supporting your unique vision!

Tell your story: Emphasize "WHY?"

In a sea of countless creative ventures, it's essential to communicate what sets your project apart. People are more likely to support your endeavor when it has a well-defined and distinctive narrative. Suppose you're recording an album - is there a common theme or a personal story that connects all the songs? Why have you chosen these specific songs at this specific time? Why are you pursuing music? The more personal and detailed you are, the more your story and project will feel special and/or unique, and the greater the chances of successfully funding it. 

Set a monetary goal with your existing community in mind
Preparing your project for crowdfunding requires significant effort, and it's crucial to understand what your community of friends, family, and followers can contribute. When determining whether it's the right time to launch a crowdfunding campaign, it's important to have a realistic understanding of what you can ask of them. Especially if you're just starting out, your main support will come from your closest circle, so it's important to gauge their potential contributions and set a monetary goal accordingly.

While there are many fundraising platforms, I recommend using Kickstarter or Indiegogo. They both offer an incentive structure for rewards, which is critical in framing your campaign as an exchange, rather than a donation. 

Both sites are intuitive to use, both as the project manager and as a backer. Potential backers won’t spend the time to figure out a complicated site, so make sure the user experience is simple and easy to understand. If the website looks sketchy, people won’t feel comfortable entering their credit card info (this is especially important for older friends and family who may not be as familiar with the crowdfunding format).

One important difference between Kickstarter and Indiegogo is that Kickstarter only offers the “all-or-nothing” structure, and campaigns cannot last longer than 60 days. This means that if you don’t hit your goal, you don’t get any of the money that was raised. While this may seem risky to you, the all-or-nothing structure and deadline have actually led to a much higher percentage of successfully funded projects. Indiegogo offers both the all-or-nothing option in addition to the more traditional ongoing fundraising option.

Remember that if you reach your goal before the end of your campaign, people can keep contributing, and you may even exceed your goal. Projects that have already hit their goal typically end up exceeding their goal - it's a momentum game. 

Rewards: what distinguishes crowdfunding from donating

Creating fun incentives is your opportunity to make the campaign unique to your project and to really let backers feel like they’re a part of this process with you. Think of things that are unique to your brand and find ways to incorporate them into the rewards.

The importance of multiple reward tiers

Everyone in your circle is a potential backer. But all of these people can’t contribute at the same level - that’s OK! Having plenty of price points for your backers to choose from can make the difference between getting funded or falling short of the goal. I recommend having 5-10 tiers for your backers to choose from. Strike a balance between a healthy variety of price points without giving an overwhelming number of choices that cause decision fatigue.

Tangible and non-tangible goods

Get creative with what you can offer your backers when it comes to rewards. Remember: they are backing this project so that they can be a part of it - so draw back the curtain and let them see the process, the behind-the-scenes, and give them the insider scoop whenever possible.

One of the best ways to maximize a backer’s contribution is with non-tangible goods: things that take only your time and energy. 

Example: If your $10 backers receive digital goods only (like mp3 downloads or digital art), you get to take all of that and use it towards recording costs. Whereas if your $10 backers are getting a physical CD, you’ll need to spend almost half of that on unit cost and shipping of the physical item.

The more unique and enticing your rewards are, the more you’ll raise. I’ve made a list of some ideas for rewards below. Think about what’s on brand for you, and what other skills you might have that you can utilize.

* Reserve this for high tier backers as it can get difficult to coordinate

** Our clients can potentially use the studio for these events - ask us for details!

Outlining the project and creating a timeline

Take the time to estimate how long your project will take once the campaign is funded. Think through everything: recording, mixing, mastering, designing cover art, getting a promotional plan in place, booking a venue far enough out for the release show — all of these things require plenty of time and careful planning to execute well. It can be helpful to provide a rough timeline of the process to your potential backers so they know what to expect. 

It may be hard to have an exact date in mind when you start recording (and you certainly don’t want to rush the process), but do your best to give your backers a decent estimate. Some platforms have a one-year timeline for fulfillment, though it’s not typically enforced. Let your backers know your intentions and communicate with them along the way if delays happen.

Outlining the reward fulfillment

Have a clear plan for how you’ll fulfill rewards and communicate them with your backers. Obviously the final album will be the last thing fulfilled and you may decide to bundle other tangible goods (t-shirts, vinyl, etc.) together so that you only have to ship things once. Non-tangible goods may be fulfilled throughout the process or even right away depending on what you’re offering.

Budgeting

Think about every step of the process and every reward you'll offer when you create your goal and budget for the project. From recording costs to album artwork to merchandise, you’re going to need to plan to avoid going over budget.

Make sure you get quotes and have good estimates for each stage of the process from the recording process all the way to the pressing, printing, and promotion. If you plan on supplementing your crowdfunding with your own money, build that into the estimate. Track and categorize every expense as it occurs and keep category totals up-to-date as you go to avoid going over budget. Below is an example budget sheet to get you started:

Once you’ve got all your projected expenses figured out and you’ve set your goal, make an easy to read pie chart graphic to include in your project write-up to show to potential backers. Many contributors don’t understand all the costs involved with making an album. Help them understand how their money is being used. Once backers see the breakdown, it may even inspire them to up their contribution!

***The numbers above are completely made up, your budget may look entirely different.

Wiggle room

If you can, allow for some pad into the budget or have a backup plan for how you will cover costs if you go over budget. However you go about it, have some money set aside for when something comes up (manufacturing costs going up between when you got the quote and when you actually made the order, additional promotion ideas, higher than expected shipping costs, etc).

The write-up: Defining the what, why, how, and when

For your project’s main fundraising page on whichever platform you choose, you’ll need a great written description of your project. Tell your potential backers why you want to make this record. What’s the story behind the songs? What’s the breakdown of how funds will be used? What types of behind-the-scenes footage can they expect to see? What are they missing out on if they don't opt-in? The more well-defined and laid out your project is, the more likely it is that your potential backers become actual backers.

The visuals: The promo video and graphics
Having a great promotional video is one of the most important things to prepare for your campaign. People are much more likely to watch a 90 second video about your project than read the multi-paragraph description. Videos have a much higher engagement on all of the social platforms and are easy to have friends and fans share and repost.

You can do a one-shot video where it’s just you in front of the camera explaining your project or you can make a little montage of your performances, any fun footage you have that showcases you/your band and do a voiceover description outlining the project. You know that great write-up you spent time getting just right for your campaign page? With a few small adjustments you can read it aloud and use it as the audio for your video if you want.

If you have graphics for your campaign, try to maintain a consistent aesthetic that fits your brand so that posts related to your campaign are easy to distinguish.

Previewing the campaign/Teasing the launch

Once you’ve got your budget figured out, goals set, and your write-up, promotional video and posts ready to go, you may be tempted to launch the campaign, but you’ve got one more thing to do first: let people know! Take one week to advertise that you’re about to launch a special project. Day 1 of your 30-day campaign should not be the first time your followers are hearing about it. You can have fun teasing the project on social media the week leading up to it. Tell people directly or build a little hype by keeping it a mystery!

The first 24 hours

Crowdfunding campaigns are all momentum. People are much more likely to fund something that they believe is going to be successful. This is why the first 24hrs are essential in getting some initial backers to contribute so that others will follow.

Put some “plants in the audience.” With any campaign, there will always be a few people you know you can count on to contribute (close friends, parents, etc.) No matter the level they contribute, it’s important to get a few backers contributing right away. So ask your best friend or your mom to be ready to back right when the campaign launches and thank them profusely!

Make the first day an event. The launch should be fun & exciting: think of it like a virtual party you’re hosting and everyone is invited. Do something special to celebrate - release a song, play a virtual concert for your social media followers, meet up with your bandmates at a brewery and invite everyone to come hang! Anything that makes the first day feel special and build excitement for your campaign is worth doing.

Keep the content flowing

The first and last few days of your campaign will likely be the busiest contribution days - but don’t just let the campaign sit idle during those weeks in the middle. Keep releasing new content and giving potential backers new insights into what being a backer will look like for them.

Plan out your content before you launch and keep it fresh. Perhaps you decide that when you hit 50% funded you’ll release a demo to all the backers, or release the design for the album art or T-shirt design! Whatever you can do to create and release new content (rather than just re-posting the same thing throughout the month-long campaign) the better your results will be.

Be bold and unapologetic with your ask!

Remember, you’re giving your backers the opportunity to contribute to something really special in addition to those great rewards. You’re not asking for a donation. If people don’t want to back your project they simply won’t contribute. There’s no harm in asking.

Social media will likely be your best source for getting the word out. Make sure you’re posting on all platforms and releasing new content throughout the campaign. Think of clever on-brand ways to get people invested and to tell your story. Make sure your links are always easy to click on and that they redirect people right to your crowdfunding site. The less steps involved, the more likely you are to get backers.

Make a list of your contacts before you launch the campaign

Your closest contacts will make up the biggest percentage of your backers and are the most likely to back at higher reward levels. Reach out to them directly (no cut-and-paste texts or emails!). Thank the people closest to you for getting you to this point and supporting you. Tell them why this is important to you and help them understand how this is an exchange. Be grateful for every single contribution and thank each person individually!

Direct contacts and social media will be your best way to gain traction but don’t forget about local news outlets, bloggers, influencers in your area, or other outlets that might share your project. If there’s a good story to tell, the press are more likely to pick it up.

Put yourself in your backer’s shoes

One of the best parts of contributing to a crowdfunding project is getting to feel like you’re a part of the project. Without backers your album may have never gotten made, so give them a unique backstage pass throughout the process. Think about your favorite artist and how much you love getting to see behind-the-scenes footage of their tour, recording process, sound check, etc. Whether you have 100 or 100,000 followers, they all want to feel like a VIP as you make the record. Here are some ideas on ways to involve your backers throughout the process:

1. Make a video where you give a virtual tour of the studio where you’re recording

2. Let backers submit questions and do a live q&a with the band on social media

3. Show the day-to-day (goofing off in the studio, blooper takes, out to lunch, loading-in at sound check, backstage at a venue)

4. Short clip teasers of recording sessions

5. Release the album artwork, singles, or any other special goodies to your backers early before it hits all platforms or social media

6. Share a digital lyric booklet and tell them the story behind the song

7. Let your backers vote on a song to cover at your next live show

8. Weekly or monthly email updates sent exclusively to backers

Building your fan community = Building momentum for your release

Use your crowdfunding campaign as an opportunity to foster a community of superfans. The more invested they are in your project, the more they’re going to share it with their own networks and continue to build momentum as you get closer and closer to releasing your project. If you keep your backers updated and excited about the project while you’re making the record, it will make the release of the final product that much bigger and better.

Crowdfunding takes a lot of time and hard work but if you plan ahead, stay organized, and keep your backers at the center of what you’re doing, it can also be a ton of fun. At the end of the day, crowdfunding is a great way to both fund your next release and continue to build your brand and foster a community of engaged followers. Now let’s get that next album funded. Good luck!