Over the past two years, crowdfunding – whether it’s through Kickstarter, Indiegogo, PledgeMusic, or a custom page on an artist’s website – has grown at a rate that’s impossible to ignore. At the current pace, contributions to Kickstarter campaigns alone are expected to account for over $150 million in arts funding in 2012. That’s more than the entire National Endowment for the Arts.
While this figure does speak to the historically low levels of national arts funding, it also says a lot about how quickly crowdfunding has become a major force in the creative economy. Just two months ago, Amanda Palmer raised over one million dollars for her new album and art book, and today, self-released artists who use the platform to secure tens of thousands of dollars to make new albums have begun to look “normal.”
In June of this year, a website called AppsBlogger shared an infographic that suggested that as many as 68% of music projects on Kickstarter ultimately reached their funding goals. But based on the newest numbers from Kickstarter, the success rate for music projects is closer to 55% today. Thankfully, this is still a bit higher than the overall Kickstarter success rate, which hovers around 44%.
According to the service itself, there’s a stark line between the campaigns that succeed and the ones that fail: “Funding on Kickstarter is all-or-nothing in more ways than one,” the company warns. “While 12% of projects finished having never received a single pledge, 82% of projects that raised more than 20% of their goal were successfully funded.”
Some artists, it seems, know what they’re doing, while some quite simply, don’t.
So what is it that separates the winners from the losers? The research suggests that it all comes down to one word: Planning. Studies show that winning campaigns are most likely to come from artists with large social networks, who create videos, offer many different reward levels, keep their campaigns short and focused, and – perhaps most importantly of all – set sensible, pragmatic goals.
What To Budget For
There are many how-to articles on the web that will give you comprehensive advice on all the ins and outs of a successful crowdfunding campaign. This isn’t one of them.
Today, we’ll focus on just one thing: setting a realistic goal for your campaign. To fill in this blank and help figure out a budgetary goal that will work for you, we reached out to a handful of our most-trusted producers, engineers and studio owners from various levels of the industry.
Nadim Issa of Let ‘Em In Music does good work and keeps his rates affordable, which has helped him become one of the busiest studio owners in his zip code – especially where up-and-coming artists are concerned. His spacious and casual Park Slope tracking room has hosted bands like Ava Luna, Soft Black and Dinosaur Feathers, as well as singer-songwriters like Sharon Van Etten and Julia Nunes.
Issa says that a growing number of his clients are coming to rely on crowdfunding, and when we spoke with him, he had just finished work on a project that was funded entirely through Kickstarter.
“For a full-length album, I’d say to shoot for at least $5,000 and up to $20,000,” says Issa. He then adds that the $5,000 figure would allow for a spirited, quick-and-dirty recording more than a refined production.
“If the artist already has a significant built-in audience then certainly that number can be much higher than either of those. Maybe $5,000 for every week spent working on the album is an appropriate rule of thumb.”
Let ‘Em In Music stands at the more affordable end of the spectrum, but Issa’s basic figures were echoed among many of the producers and engineers we spoke to.
Jonathan Jetter of Right Angle Recording in Manhattan has also found work with a growing number of crowdfunding artists. Nearly all of them, he says, have used “some kind of humorous promo video to advertise the campaign.”
To him, the $5,000 figure also seems a bit too low for a traditional full-length album. He mentions that his client Abby Payne raised more than $6,000 for her new EP, while Railbird used crowdfunding to secure a few thousand to work on their new single and video.