The concept of crowdfunding originated in England and refers to an approach in which a large number of people participate, financially or economically, to launch and ensure a favorable outcome for a project.
This approach is particularly applicable for situations in which budgets and financing solutions are increasingly reduced.
Let’s discover what artistic crowdfunding is.
What forms does crowdfunding take?
The crowdfunding approach can be applied to all forms of endeavors, whether or not the project is more on the creative and artistic side: the most popular form is a donation, in which case a donor generally contributes a sum without expecting compensation in return.
But there are also contributions that expect a monetary return or other form of benefit. This is common in the case of creative projects because it allows the donor to be part of something artistic in a more concrete way.
Crowdfunding can also be done in the form of a loan: this leverages the lending ability of others and promises to repay within a given timeframe. It can also involve a capital investment: in this case, the donors become financial stakeholders in the project, which compares to setting up a kind of legal entity.
Another form of crowdfunding often practiced in the artistic field is community production: in this, donors become more than just financial contributors of the project and take part in the creative side.
The means used
The artistic crowdfunding uses the sweeping reach of the Internet: there are many crowdfunding platforms out there that allow donors to choose a project according to their interests and goals allowing them to narrow their choices down to those they really want to support.
Social networks are also a great support medium as well as a tool to get a crowdfunding campaign started, both allow increased awareness and diffusion of your campaign.
The various platforms for artistic crowdfunding
Many online crowdfunding platforms that cater to artistic projects have emerged in recent years. The best known is undoubtedly Kiss Kiss Bank Bank which hosts a large number of projects.
The Ulule platform follows closely behind in terms of reputation and projects supported. For music projects, MyMajorCompany is undoubtedly the preferred, especially because it has helped hatch many artists whose careers have taken off thanks to artistic crowdfunding.
The Support.Link platform allows to promote artistic work on social network sites through a support link that redirects a user back to the crowdfunding site, to increase awareness of the artist as well as showcase the creative projects. Each artist can create a page that will be his or her own to display all the various projects.
A few of these established crowdfunding platforms are Grégoire, Joyce Jonathan, and Irma. In addition, some platforms have specialized in artistic fields.
For example, Proarti mainly supports projects related to live performance arts, Movies Angels appeals to independent movie projects, and Cercle Rouge is used for anything related to art.
How to create an effective crowdfunding campaign?
A secret to success, unfortunately, does not exist in terms of artistic crowdfunding, but some tips can help to successfully create a campaign that achieves its goal.
First of all, do not think that it’s sufficient to just create a campaign and expect people to donate: indeed, a campaign requires the very essential work of communication, as well as a network that is willing and able to help spread the word. It’s necessary to adapt your objectives to these two realities.
Then, one must choose the platform that best fits the project: First, for the purpose of the budget, know what the costs incurred by the campaign will be. Then, consider the platform’s limitations, projects it has supported, reputation and success rate of other similar campaigns it has serviced.
Then, it is absolutely necessary to clearly identify your needs and objectives:
- What’s the sum you really need?
- What do you want to finance with this crowdfunding campaign?
- How much will be returned back to investors as profit?
- Is this objective and budget feasible given the number of potential donors?
Then, it’s important to define how profit will be distributed for all investors: it will help to have some sort of guideline; starting from a small sum (approximately $5) to a larger sum (up to $1000).
Then, suggest the payment options to your donors: this can be an allowance same as the customary dividend or even a customized return.
Not all donors are alike, and one’s motivation for financing the project in the first place will differ from the others.
After the profit distribution is decided, you will have to continue planning your crowdfunding campaign:
- How long will it take to be effective?
- How to create constant communication around this campaign so that it does not falter?
- How long will it take to set up and how long to maintain it?
- At which point should the project be launched?
These are important questions to keep in mind to not lose sight of the main objective.
The last, and possibly most important piece of advice, has to do with the communication: it is essential that you’re using established and easily recognizable communication mediums through which the project will easily promote and take off.
It is also necessary to create communication tools for the entire duration of the artistic crowdfunding campaign, but which are not repetitive and will provide insightful information on the progress of your campaign.
It is also important to keep your donors informed once your campaign has ended.
Pros and cons of artistic crowdfunding
Artistic crowdfunding has many definite advantages, including the ability to diversify financing methods that have become increasingly difficult to find.
It’s also a way of communicating a project by stepping aide and unveiling behind the scenes. This can make it possible to show the inner workings of your project. As a result, you will acquaint others to your campaign; who otherwise would not have thought about supporting an artistic project.
But artistic crowdfunding does not come with advantages only; it’s a process that requires a lot of time and energy to keep each phase within its set timeframe and ensure a profit for the stakeholders.
It’s also a process that does not always guarantee success and can be synonymous with frustration whenever the artistic crowdfunding does not give the expected results.
We must really weigh the pros and cons before embarking on an artistic crowdfunding campaign, but if all the right elements are present, the initiative is well worth the effort.