Crowdfunding has grown in popularity as a way for new musicians to raise the funds they need to record their first album and grab the attention of a record label.
Larger, mainstream bands and artists have also turned to crowdfunding to avoid the censorship and loss of artistic freedom sometimes associated with record labels.
Best of all, crowdfunding gives musicians access to new audiences around the world in an unprecedented way. One thing is for sure – fans love having the chance to support their favorite musicians in exchange for some cool rewards and a behind-the-scenes experience.
If you’re a musician considering crowdfunding for your next project, you’re in the right place. Stay “tuned” for a comparison of two popular (and very different) crowdfunding platforms used by successful musicians – Kickstarter and PledgeMusic.
Kickstarter
Fees: 5% of your funding total goes to Kickstarter, and 3%-5% goes to payment processing
Success Rate: 51.41% for music projects (37.08% overall)
Launched Projects: 42,286
Total Dollars: $157.32 M
Kickstarter is one of today’s most successful crowdfunding platforms. Since the platform was launched in 2009, over 91 thousand projects have raised more than $1.9 billion in pledges! Kickstarter’s Music category is the fifth-highest earning, with more than $154 million pledged to over 41 thousand projects.
The most successful music campaign on Kickstarter, Amanda Palmer: The new RECORD, ART BOOK, and TOUR, raised over $1M in pledges. Another highly funded Kickstarter music project is De La Soul’s NEW ALBUM, which recently raised over $600K.
While Kickstarter is home to projects from some popular bands (like New York City’s Anamanaguchi and Mindless Self Indulgence), they also host projects from many up-and-coming artists.
In fact, some celebrities have faced backlash for launching projects on Kickstarter; the perception being that they don’t really need the money and that they are overshadowing other projects. Of course, their own fans usually don’t mind.
PledgeMusic
Fees: PledgeMusic charges a flat rate of 15% (covers payment processing)
Success Rate: 90%
“After subtracting our 15% commission, we release 75% of funds raised immediately, via bank transfer or PayPal.
The remaining 25% is delivered when your finished release is uploaded to the PledgeMusic site. If the project goes over 100% of the initial target, the balance will be paid upon full delivery of all exclusives to pledger”
PledgeMusic is a crowdfunding platform dedicated specifically to music-related projects. While the site looks similar to other crowdfunding platforms – there is an important difference. On PledgeMuic, backers don’t get to see the project’s funding goal, only the percentage of completion.
This is partly because larger artists don’t always want to disclose how much they are raising. In a Digital Music News interview Benji Rogers, PledgeMusic’s founder, said it’s also because:
“When you show a financial target you either look desperate or needy. One of the things we found is that if you hide that financial target fans spend more.”
Although PledgeMusic’s model is a little different than most people are familiar with, it is working. PledgeMusic reportedly has a 90% campaign success rate and has attracted the business of familiar artists including: Megadeth, Siversun Pickups, Sum 41, Rammstein, Buckcherry, Korn and more! They have also helped approximately 50 artists score record deals.
Conclusion
Hopefully after reading this post it is easy to see some of the things that make Kickstarter and PledgeMusic different. Both platforms are a great choice for bands and artists looking into crowdfunding their next project, but each has its own unique strengths.
Kickstarter might be a better choice for newer artists that have a small following, but who could still use Kickstarter’s popularity as a way of drawing in new fans, but it’s still important to promote your music project. Since music projects on Kickstarter have a success rate over 51%, the odds are good and the fees aren’t quite as high as those on PledgeMusic.
More experienced artists may prefer PledgeMusic for their crowdfunding campaign because of its exclusivity towards music projects and the fact that they don’t disclose funding amounts. This platform attracts a lot of well-known bands and artists, and may help new artists connect with record labels that could help further their careers.
Feel free to leave any questions or comments below!
