how to manage crowdfunding for artists and musicians

DBTH was proudly founded to provide strategy, business

development, media relations and networking to amazingly cool people and companies in the creative space.

MaMA is one of the most dynamic music convention and

conferences in Europe. Based in France, MaMA has showed its usefulness and pertinence for France as well as other territories, providing a market place to make deals, and to share experience with others professionals, to consider and discuss updates and change and to discover new artists.

MaMA makes available 80 concerts, 30 conferences, debates and workshops, speed meetings, lunches…

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•  I’ve been online 15 years!

•  I run DBTH, a strategy and development firm for artists, creatives industries, emerging tech.

•  Author: “Music and digital strategies”(Amazon, iTunes…) •  I’m specialized in music, creative industries and digital marketing

•  I’m a member of IAB / IDM Joint Digital Council

•  I also host «On refait la musique», a talk show about the music industry.

About Virginie Berger

Crowdfunding =

Participative financing action, relying on social networks and community platforms

on the web to reach a great number of small donators.

Crowdfunding =

Almost any kind of musical projects  

  •  Production •  Tours  •  Marketing  •  Video  •  Web  •  Merchandising   

How crowdfunding can support you?

452 participative financing platforms in the world by April 2012

=

$1.1 billion in funds raised in 2011   

Kickstarter raised nearly

$120 millions in one year, thus financing around 50 projects per day !

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April, the 5th 2012 : OBAMA ratifies the Crowdfunding

Act and ALLOWS Crowdfunding for companies

The Crowdfunding boom in 2012

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25 crowdfunding platforms

5.000 projects =

Six million euros raised since 2008

In France

The world leaders Kickstarter, Indiegogo, Rockethub In France, general platforms (arts, cinema, music, artistic projects) Ulule, Kisskissbankbank Specialized platforms Babeldoor, Friendsclear, Arizuka, Myshowmustgoon.com,

Yourmajorstudio, mymajorcomany,

Creative & innovative sector platforms

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Donations vs donations

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Specialized General

•  Launching by the Louvre museum of the tousmecenes.com platform with more than €400 000 raised,

•  An independent video games studio raises $1 million in 2 days, $3.3 million in 1 month,

•  Julie Uhrman, designer of game console Ouya (open source on Android) : funds needed $950.000, funds raised $8.6 million.

•  Lockpicks by Open Locksport raised $87 400 dollars (for 6 000 asked) for a padlock opening tool project...

Large transactions examples

Anatomy of a campaign

Objectives

Rewards

Choice of the platform

Pitch  Video 

Description/Bio 

Social network Media 

Updates 

Photos

Your Budget

•  Define your budget •  You think you can raise €100 000 ?

•  You have a large fanbase ? •  Even Public Enemy had to switch from 250k$ to 75k$

•  Be realistic !  

•  Take all costs into account (including rewards),   •  Integrate 10% more to address any problem, •  Take into account the fees linked to the platform percentage and the means •  of payment (paypal), •  VAT, tax return (citizens, EI, association, company, private contributor or company)

Sample  Budget    

Who are you talking to?

4 extended entourage, general

public sharing common interste

interests

3 support,

2 Closed Entourage

famiy friends

1 You

Rewards

•  Offer a wide range of contributions

The collecting duration should fit the amount you ask for. According to Kickstarter, the optimal campaign length is 30 days. According to the Kickstarter data : •  80% of your contributions will be in the 25 ‐ 50€ range •  20% will be in the larger range of contribution. •  $50 is the optimal investment point, followed by the $25

one. •  The reward should be proportional to the value of the

contribution.    

HAVE FUN WITH YOUR REWARDS IDEAS

Small 20/100€ Medium 150/500€

Large 600/1000€

More than 1000€

Contribution ideas

Dinner, drinks

Music Lessons

In House Concert

Private visite in the backstage

« One of a kind »

cover

Personnalised track

Mixtape

Email, interview, skype

Handwritten sheet music

Private concerts

Signed CD (DVD, etc..)

Prerelease CD/Download

Example, Josh Freese for his second solo album, Since 1972,

•  For $50 , phone call, •  For $250 lunch with him, •  $500 lunch in a very high-end restaurant, •  At $2.500 (in a limit of 5 packages), a drums lesson (and you could

keep one of his snare drums). Visit of the Hollywood wax museum with Freese and one of his rockstar friends (to be chosen out of a list) + you could pick 3 articles of clothing from his wardrobe

•  For $10,000, you could have dinner with Freese and one of his rockstar friends, before heading for Disneyland, still with Freese. And at the end of the night, you would keep John's Volvo break – after taking him back home.

•  Packages at $20.000 and $75.000 with offers including having Freese as a drummer in your band or as a personal assistant for a few weeks.

•  You could also go on tour with him. He could even write and record a song about you. A florida teenager bought the $20.000 offer and spent a week with Freese, including one night on the Queen Mary, a pizza evening at and with Mark Mothersbaugh (of Devo) and a mini-golf session with the singer of Tool.

How to ask for money?

•  Don't be shy!  You are only asking people around you to help you develop your career •  “This is business. Not personal”   This effort is only about a predetermined amount at a precise moment Don't panic

The Video Pitch

”The success rate of projects that don’t include a video is way lower than projects which include one. Video is the best way to get

in touch with donators” Co‐Founder Yancey Strickler, Kickstarter  Video is the most important fund-raising tool   Keep it brief – 3 minutes MAX!  Describe your band, your music, your project, the amount you need Why and for which contributions?

Amanda Palmer: $200 000....... $1.192.793$ in the end http://youtu.be/TveAzAs6NAY

How to develop your campaign?

•  Relays •  Twitter •  Facebook: Post updates about your campaign on your social

networks profiles •  Email marketing: use your mailing lists, create targeted mailing lists,

send weekly or bi-weekly updates •  Blogs/blogging relationships: Ask for a helping hand... or several •  Offline events

The band website  Youtube  Tumblr  Bandcamp   

The experience begins before the purchase

5%

+10%

+30%

+30%

+25%

100% : your objective! !

5Days

10Dayss

25Days

50Days

2. Social networks + widget : Export my project thanks to a widget + create a post on my blog + relay on twitter

“A combination of actions to reach 100% of your objective »

« Have a large communication approach to aim at smaller and more personal actions »

J1 1.

J -15

How to succeed?

Social networks, friends & family : Announce my forthcoming collaboration with kisskissbankbank to create expectation

3. Grouped mailing : •  Inform my contacts via email •  ( family, friends, colleagues, acquaintances, etc. )

4.  Segmented mailing: Deliver a more personal message for each different circle

5. Personal mailing : Individual emails

Adapt my message to every one

6. Announce the forthcoming success : ask my kissbankers to mobilize their community + explain to my community that we can go beyond 100%

Think of special offers  

“My best fund-raising day was when I managed to raise 33% of my funds in 24 hours. It was via a simple email that said « I need at least 27$ to finally reach the 2,000$. Anyone giving 27$ or more in the next 24 hours will get to download all my previous albums for free.» By indicating a specific amount, clear period of time and a genuine reward, I gathered 33% of the total of my donations in 24 hours.”  Tyler Stenson   

Campaigns tend to have a quick start, reach a big donation peak and collapse. Then, a new important rise in donations is observed towards the end. (Kickstarter data)

Watch out for the “U” effect 

How to avoid this gap ?

•  With regular communication •  Look for external relays •  Constantly work on your network •  Send info and reminders continuously  

•  Before you start, define your plan: where, how much, how. •  Who will you be talking to ? Where are they ? •  Carefully select your platform. Each project has its own model. •  Develop your rewards, best is good… •  Create your pitch, •  Where are you going to broadcast your pitch ? •  Develop your diffusion plan: which content, which channels, when ? What will you

be needing ? how much will it cost ? •  Define the resources you will need. Who will be in charge ? When ? Can you do

everything ? If not, who will you be working with ? And for how much ? •  Define the time necessary for all this, •  Monitor. Every day. What works, what doesn't and why ? What can you improve ? •  Is your web presence well implemented ? Are you ready to relay the whole thing

on social networks ? •  Is your audience ready to receive it ? And... be yourself….

IN SHORT

Thank  You!!    

REAL CASE STUDY : THE APARTMENTS

By Emmanuel Tellier, former journalist for Inrocks, chief editor for Telerama, musician (Chelsea, Melville and today pop-rock band 49 Swimming Pools)

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DBTH is a digital entertainment consulting firm focused on leveraging our collective experience and expertise in:

•  Building relationships, •  Identifying market opportunities, •  Growing brands, •  Defining best practices.

for the Creative, Entertainment, Emerging Technology and Mobile Industries.

All the best for your digital journey! Questions & discussion welcome

•  Blog www.virginieberger.com

•  Website www.dbth.fr/en

http://fr.linkedin.com/in/virginieberger

facebook.com/virberg

Facebook.com/dbthAgency

twitter.com/virberg

twitter.com/dbth_aa

More information in my book “Music and digital strategies”(Amazon, iTunes…)

Merci ! vberger@dbth.fr dbth.fr/en @virberg