If you haven’t heard of crowdfunding websites like Kickstarter, I don’t know where you have been.  If you have fans (and sometimes even if you don’t) crowdfunding is a great way to raise money for your next song, cd, tour, or whatever your plans are for the near future.  Keep in mind – and this is a very important detail people over look – crowdfunding means you give something in return for money and it doesn’t mean people just give you money.  Whether it be new music or merchandise or even a private acoustic show for your money-giving fans, you have to offer up some good rewards to get people to fund your project.  If you offer up the right things, people will give you money.  (Remember… the rewards have to be good and equivalent to the amount you are asking.)

Kickstarter helped raise over $19,000,00 in 2011 for musicians.  That is right, 19 million dollars.  Second to only what film producers got on the site.  Did you get a share of the 19 million?

Loyal fans are definitely willing to help your band out, but they want something in return.  

Make sure that you offer up a wide range of price-points and options within the ranges: small ($10-$100), medium ($150-$500), large ($600-$1,000) and extra-large ($1,000+).  And make your prizes equivalent.  Maybe an digital album download before the release for those who offer $10 or for $15 you can get this awesome band shirt that will normally sell for $20.  Be creative.  Get your fans involved.  Ask what they want via Twitter and Facebook and then deliver when possible.  Always, and I mean always, take time to recognize fans who help you out – whether it means sending them an email, giving them a call, or shouting out to them via Facebook or Twitter… it really is the little things that matter.

One important thing about crowdfunding is the fact that it is “fund raising” within a certain time frame.  You set a date and tell the world how much you need.  You tweet it, post it, newsletter it, and spread the word to raise the money.  If you do not raise the money by the date you set, you get nothing.  Which also means that your fan doesn’t pay up unless you reach the goal you set.  You might be able to cleverly leverage some reverse psychology here… if you want.  ;)

Kickstarter has showed no signs of slowing down.  Visit the site and take a look around at the popular fund raising campaigns.  Get some ideas for some stuff you can do and then start raising that money!

For more information on Kickstarter or to kick start your fund raising, check out Kickstarter.com.