Crowdfunding for Music Artists: 6 Essential Tips for Success

Crowdfunding is a way of raising money from a large number of people to finance diverse projects. It is often associated with startups and small businesses, which receive backing from individuals who believe in the vision and potential benefits of the business or its products. Crowdfunding is also commonly used to collect donations for diverse causes, whether by individuals or nonprofit organizations.

In music, crowdfunding is an excellent way for artists to finance a specific project, goal, or endeavor, or to gather funds in case of an emergency. It can be used to fund the production of a new album, set up a professional studio, or replace costly equipment that was unexpectedly damaged.

This alternative method of accessing funds offers several advantages. For some artists, crowdfunding can serve as additional income for music-related endeavors if the money they earn from their creativity or day jobs is barely enough to make ends meet. Another example is artists who are involved in political activism who may not want to rely on funding from the same government they criticize. And, as mentioned earlier, crowdfunding can also be a great way to cover emergency expenses when the money in your account is not enough.

That being said, a successful crowdfunding campaign requires a strategic approach. You cannot expect to share a campaign once and have hundreds of people contribute. So, to help you get started, here are seven key tips for your next crowdfunding campaign!

The success of a crowdfunding campaign often depends on whether there are (enough) people who care enough to contribute.

What makes crowdfunding more challenging than, for example, getting people to listen to your new release is that you're asking for more than just their time or attention. With crowdfunding, you’re asking for their hard-earned money without always offering anything in return—a lot of times, it’s merely a promise to give them something valuable in the future.

Because of this, it's important to keep your expectations realistic when starting a campaign. Remember that most of your support will likely come from those closest to you, including your friends, family, good acquaintances, and most loyal fans. While it’s possible to gain support from people outside your immediate circle, it’s important not to set your hopes too high.

In this context, you should also assess how strong your current fanbase is and, unless you’re dealing with an emergency, possibly reconsider if now is the right time to launch a crowdfunding campaign. If your fanbase is rather small and impersonal, it could be difficult for you to reach your fundraising goals. In that case, it might make more sense to focus on building stronger relationships with your fans first.

That is not to say that you should only do this to get them to donate to your campaign. Building deeper connections with your community has many different benefits, including your own sense of connectedness and that of your listeners. The fact that it increases your chances to get them to contribute to your crowdfunding campaigns is just a nice extra.

Now that you’re aware of the challenges, let’s look into the next step: setting clear crowdfunding goals and intentions.

A crowdfunding campaign should always be built around a clear and reasonable goal that is effectively communicated to potential backers. This includes specifying the amount of money you need and what exactly you need it for. Communicating your goals gives potential supporters a better understanding of where their money is going. Let’s look into some examples.

If your intentions behind your campaign are rooted in political activism, explaining the limitations and risks of relying on government funding while emphasizing your mission can be a compelling and genuine reason to ask for financial support. Or, if you already have a solid fanbase, outlining the costs of producing your next album and your desire to provide them with new music could motivate them to contribute. In this case, you can outline how difficult it is to navigate the music industry as an independent artist, and how much of your work depends on having supportive people around you.

In this context, it is also crucial to think of ways to verify your campaign, so that people don’t worry about it being illegitimate. With so many fundraisers circulating, you don’t want yours to be mistaken for a scam.

The next step in your crowdfunding journey is selecting the most suitable platform. There are many options available, including GoFundMe, Buy Me A Coffee, Kickstarter, Indiegogo, Ulule, and more, with each platform offering unique features and benefits.

For example, GoFundMe is often used for personal or emergency funding, such as covering unexpected costs or urgent needs, while Buy Me A Coffee is more suitable for ongoing support from fans, offering smaller, more frequent contributions in exchange for exclusive content or rewards. This is why it is important to compare the characteristics of different platforms to determine which one aligns best with your goals.

When making your choice, make sure you also consider factors like platform fees (commissions and transaction fees), project constraints, supported project types, and the platform's reputation. Don’t forget to evaluate the tools available, such as analytics, promotional options, and specialized features for different types of campaigns.

Finally, think about the platform's language, user interface, and how it matches your target audience's habits and preferences. The platform you choose can significantly affect both the execution and outcome of your campaign, which is why selecting the right one is essential for its success.

Once you’ve selected a platform for your crowdfunding campaign, it’s time to think about how you’ll promote it, what content you will need to create, and where you want to share it.

Promotional content can vary depending on your audience and intent. For example, you can create a carousel post on social media where you explain your campaign, its purpose, and how people can contribute. Alternatively, you can create a video where you directly address your audience and share why the campaign is important to you. This more personal approach can help create a deeper connection while also adding more detail and emotion than via text.

Other promotional tactics might include sending a targeted email to your newsletter subscribers, or adding a banner to your website that directs visitors to a separate campaign page. This page could feature a written explanation of your project, the aforementioned video, and the link to your campaign. You can also try to reach out to people directly via DM to ask them to either contribute or share your campaign.

Regarding the timeline, you should keep your supporters informed and up to date about the campaign consistently. By sharing updates about the progress you’ve made, you remain transparent and trustworthy. You should also share regular updates if your campaign is going well, since seeing the bar get closer to the goal might actually motivate people to contribute to your campaign.

Finally, be sure to include a link to your crowdfunding page across all your social media channels, whether through a smart link or directly, to make it easy for supporters to find and contribute.

Earlier, we’ve discussed the challenges of crowdfunding, including getting people to go out of their way and give away some of their hard-earned money without always receiving anything in return. Think of aspiring entrepreneurs who are gathering funds to launch their business. Those willing to contribute often rely on the promise of receiving something valuable from them in the future, whether it’s a product or service or a share of their profits.

Fortunately, as a musician, you can absolutely create further incentives for people to contribute to your campaign that go beyond future promises. For instance, you can combine your crowdfunding campaign with the release of a new single or EP. You can then share the exclusive link with everyone who donates, and maybe even include a personal voice message at the end.

Or you can combine it with a giveaway, giving 5 people the chance to win VIP tickets to your next show, merch, or a meet and greet. This way, you can motivate them to contribute.