Now that you
have your audience’s attention, it’s time to focus on the big “F”… funding! Each
stage of every business requires capital at some point, especially the music
industry. From the creation of a song to the performance on stage, you have to
pay to play.
What’s your
strategy? Do you have access to unlimited funds? Will you borrow money from
family and friends? What about your local bank? Maybe they’ll be willing to
fund your projects. Sure, about 6 or 7 years ago!
 |
| Crowdfunding is a great funding source for entrepreneurs. |
What if I told
you there’s a better way? Over the past year or so, crowdfunding has taken the
world by storm. Forbes.com
defines crowdfunding as, “the practice of funding a project or venture by
raising many small amounts of money from a large number of people, typically
via the Internet.” This reintroduction of an old concept has significantly changed
the small business world by successfully funding thousands of innovative ideas
that would otherwise be figments of our imaginations given the stringent
lending practices throughout the traditional finance world.
You may be
asking yourself, what does this have to do with social media marketing? Well,
many of the crowdfunding platforms use Facebook and Twitter to market funding
campaigns. Let’s say you need to raise $50,000 to record a video for your first
single on your album. Sites such as Kickstarter,
Indiegogo and GoFundMe make it easy for you to create
funding campaigns and share them with your Facebook friends and Twitter
followers. Obviously, the greater the influence you have, the greater your
chances are of being fully funded.
I recommend you
make your campaigns fun and exciting. Per SECregulations, crowdfunding investors cannot legally claim a stake in your
business idea or project (favorable changes coming in 2013 thanks to Title III
of the Jumpstart Our Business Startups Act (Jobs Act)). However, incentives such as early access to products
or services, other great gifts and the warm and fuzzy feeling you get when you
contribute to something awesome.
Your fan base
would love to have access to your new music before anyone else or an invitation
to an exclusive party. Tell your story, get creative with your campaign and offer
unique rewards to increase the likelihood of a successful campaign. This is also a great way to market your brand and keep your audience actively engaged.
What are you
waiting for? Take Indiegogo’s advice and, “Go fund yourself!”
Thanks for
reading!
