Crowdfunding // RAM Aarhus 26.02.13 Malte Graubner // SellaBand 1 Crowdfunding Master Class Lecture – Royal Academy of Music Aarhus 26.02.2013 Malte Graubner – Artist & Product Manager SellaBand "SellaBand is the new frontier and will completely redefine the way the music business operates" - Chuck D, legendary Hiphop icon
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
Crowdfunding // RAM Aarhus
26.02.13 Malte Graubner //
SellaBand
1
Crowdfunding
Master Class Lecture – Royal Academy of Music Aarhus 26.02.2013
Malte Graubner – Artist & Product Manager SellaBand
"SellaBand is the new frontier and will completely redefine the way the music business operates"
- Chuck D, legendary Hiphop icon
Crowdfunding // RAM Aarhus
26.02.13 Malte Graubner //
SellaBand
2
SellaBand
Online since 15.08.2006
100 successful projects
about 2 Million EUR have been paid out to projects
about 3,5 Million EUR have been invested into projects
Block 1: Crowdfunding as a alternative to traditional Financing What is crowdfunding? What kind of artist is can profit from a crowdfunding project ? Block 2: How to build a succesful funding campaign
Crowdfunding // RAM Aarhus
26.02.13 Malte Graubner //
SellaBand
4
What is crowdfunding?
Brief historic overview
Crowdfunding // RAM Aarhus
26.02.13 Malte Graubner //
SellaBand
5
1885: Base of the freedem statue in NYC is financed via crowdfunding 1997: Marrillion collects around 60K online to finance a tour 2000: artistshare.com is founded by Brian Camelio 2006: on August 12th Michael Sullivan invents the word Crowdfunding 2006: SellaBand online on August 15th 2008: Indiegogo online in USA 2009: Kickstarter, Pledgemusic and others are online 2010: February: SellaBand acquired by german investors 2011: around 1,500 Million USD paid out to project worldwide, about 1 Million
succesful projects 2012: in April around 452 CFPs are online, over 500 predicted by 2013 2012: around 53 million USD were paid out to music projects only, around 100
CFP‘s that deal somehow with music… Since the beginning of Music-Crowdfunding about 10.500 sucessful project that
Crowdfunding is a webbased and participative financing model, which is financing projectideas through a
unlimited number of people. (…)
Quelle: Das co:funding Handbuch Mai 2012
Crowdfunding // RAM Aarhus
26.02.13 Malte Graubner //
SellaBand
8
What is crowdfunding?
„Crowdfunding is nothing less
than the next step of ‚Social Media‘, the
methamorphis of the like button into money.
Until now you could not live from likes and love, but the slow rise of crowdfunding will
demonstrate, if the Fan is called Fan for a reason or if he was just part of a I-Pad-giveaway-excited
click hord.“ Sascha Lobo (SPIEGEL, 20.03.2012)
Definition
Crowdfunding // RAM Aarhus
26.02.13 Malte Graubner //
SellaBand
9
What is crowdfunding?
SellaBand thinks of Crowdfunding
as a community-based approach
to finance music-related projects
and to built strong artist-fan relationships!
Definition
Crowdfunding // RAM Aarhus
26.02.13 Malte Graubner //
SellaBand
10
What is crowdfunding?
Definition
Overvie of the differen definitions…
Crowdsourcing
Crowdfunding Crowdtesting
Equity-Based (Unternehmensanteile)
Lending-Based (Zinsen)
Reward-Based (Produkte)
Donation-Based (Spendenquittung / reines
Gewissen)
Crowdinvesting Crowdfunding
It is possible to mix all variables on all levels!
Crowdvoting …
Quelle: eigene Darstellung in Anlehnung an Crowdfunding Industry Report May 2012, crowdsourcing.org & Das co:funding Handbuch Mai 2012
Crowdfunding // RAM Aarhus
26.02.13 Malte Graubner //
SellaBand
11
What is crowdfunding?
Forms of Crowdfunding
There are 2 general project-categories: Keep it all (e.g. Indiegogo (flexible Funding campaign) All or nothing (e.g. SellaBand, Kickstarter)
Crowdfunding // RAM Aarhus
26.02.13 Malte Graubner //
SellaBand
12
What kind of artist can profit from a cf-project?
What kind of artist is can profit from a crowdfunding project ?
Crowdfunding // RAM Aarhus
26.02.13 Malte Graubner //
SellaBand
13
What kind of artist can profit from a cf-project?
Self-marketing-consicence
Internet/online-affinity
Fans (At least: wanted sum : 42)
What do artists have to bring along?
Crowdfunding // RAM Aarhus
26.02.13 Malte Graubner //
SellaBand
14
What kind of artist can profit from a cf-project?
Possible funding sum: 3000,-- bis 10.000,-- EUR
Use crowdfunding to: finance a recording session and the CD
Advantages:
Early Bird Fans are bound deeper
Viral marketing effect through the funding itself
Additional marketing argumets with a extreme high funding sum
Newcomer
Crowdfunding // RAM Aarhus
26.02.13 Malte Graubner //
SellaBand
15
What kind of artist can profit from a cf-project?
Midlevel / AAA
Possible funding sum: ab 10.000,-- EUR
Use crowdfunding to: special marketing tool to provide for example before release timeframes with special communication; Product: Concert-DVD, Album, Tour. But also: catalouge exploitation, comebacks… Advantages: Activation of die-hard fanbase by special action Viral marketing effect (Amanda Palmer) Most times money is not needed, thus it is not a must to reach the funding goal
Crowdfunding // RAM Aarhus
26.02.13 Malte Graubner //
SellaBand
16
Gliederung
Block 1: Crowdfunding as a alternative to traditional financing
What is crowdfunding? What kind of artist is can profit from a crowdfunding project ?
Block 2: How to build a succesful funding campaign
Crowdfunding // RAM Aarhus
26.02.13 Malte Graubner //
SellaBand
17
10 steps for a succesful cf-campaign
Ten steps for a succesful crowdfunding campaign
Crowdfunding // RAM Aarhus
26.02.13 Malte Graubner //
SellaBand
18
10 steps for a succesful cf-campaign
1 Fancommunity building before the campaign
3 Essentials for a artist: 1 own website with newsletter 2 Facebook 3 Youtube-Channel
FRIENDS, FAN‘s and FAMILY
Less than 5% of a community are giving money…
Crowdfunding // RAM Aarhus
26.02.13 Malte Graubner //
SellaBand
19
10 steps for a succesful cf-campaign
2 A good story / define the project
3 hints: Be precise for what you need the money (Album, EP, Tour vs. I want to start my
THE hint for creating your incentives: Offer something money can‘t buy (a real value!)
AND 5-10 incentive are mostly enough (KISS Prinzip)
Hint‘s for defining a price: Offer something for every wallet (good mixture of low-price and high-price incentives) Most favoured price: 20,-- EUR (mostly a hand-signed CD with name of buyer) Always ask yourself: would I buy my incentives for that price?
SET UP a calculation (you need to obey shipping and manufacturing of the incentives!!! Put in a 10% reserve!!!) Check if you have enough fan‘s (Remeber: less than 5%...) Simple formula: needed money / 42 = number of people that must give money
Erfolgschancen bei Projekt mit Fundingvideo: 50% Erfolgschancen bei Projekt ohne Fundingvideo: 20%
Projekte mit Video erreichen 112% mehr Geld als Projekte ohne Video!
10 steps for a succesful cf-campaign
Crowdfunding // RAM Aarhus
26.02.13 Malte Graubner //
SellaBand
24
There‘s no need for a hollywood production, but think about the follwoing: - Who are you? - What is your plan? How far did you get yet? Do you think that your career is moving up to now? - Ask the believers directly for their support; tell them on what you are going to spend the money! - Your incentives! What do they get our of it?!? - Give proof, that you can bring the project to an succesful end! - How can you involve your believers? Tell them what crowdfunding is. Make sure they know that you need their belp! - Be polite! Say thank you!
1 Start Close: start with you family, friends and die hard fans 2 As soon as there is a measurable success: start involving your network, Facebook, Twitter etc.. Write posts and blogs, write emails to blogs, special interest communities, fanzines… 3 Set up special events/actions (e.g.: instore gig at your local record shop) 4 Try to involve the local media But: don‘t over do it. Don‘t be „that-guy“ that spams everybody and becomes annoying by being everywhere!
Share sucess and milestones with your believers Collect ideas and content before starting the project Succesful projects are constantly updating. But don‘t give to much updates…
A CF-project is hard work! Nothing is happening from alone… Even if the project is not going that well: • try to come up with improvements • involve your Believers/Fan‘s • You must stand behind your project!!!
Crowdfunding // RAM Aarhus
26.02.13 Malte Graubner //
SellaBand
29
10 steps for a succesful cf-campaign
10 After the active funding
3 important things: Set up a thank you message for your believers as soon as you reached the goal! Send updates to your Believers about your progress Send out your incentives as soon as possible and directly react if there are complaints!
Think about: Taxes Other legal provisions There are differences between lending based, equity based, donation based and reward based projects… Read the T&C‘s of the platforms. Where do contracts evolve?