Is Fan-Funding Smart or “Shameful?”

September 6, 2012{ 19 Comments }

The Fan-Funding Smack-Back: Point/Counterpoint

Matt De Mello interviewed Eric Victorino from the band The Limousines about their recent crowdfunding efforts on Kickstarter (after several soured relationships with labels).

Though the campaign is going quite well for the band, raising over $36,000 with 20 days still left to go, De Mello says he thinks fan-funding is “a shameful way to go about making a record.”

Victorino says De Mello is thinking like “a stuffy business person” and accuses him of living in the past. The interview heats up from there.

Read the full transcript HERE

limousines kickstarter grab 300x212 Is Fan Funding Smart or Shameful?

What do you think of crowd-funding?

Are tools like Kickstarter and RocketHub fueling a new kind of creative entrepreneurship? Or is it a glorified form of begging? Let us know in the comments section below.

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  • Santamente

    what a horrid article – putting up a kickstarter is no different than offering a pre-sale of an album, except that if you don’t make your goal you get nothing and the fans get their money back. this guy has one hell of a chip on his shoulder. so as musicians we should either take out loans or sign our souls away to a record deal, and that’s the only two options? what a horrible, backwards way of thinking.

  • http://twitter.com/joshcarples Josh Carples

    If it were “begging,” the fan would get nothing in return. The fact that fans and friends are able to help artists fulfill their goals while getting special (and in many cases limited edition) items and experiences in return is nothing shameful. And considering the minimum donation to many campaigns is the equivalent of a pre-order, and that it’s completely voluntary, I fail to see why that writer considers fan-funding such a negative thing.

  • http://twitter.com/aaronwalters_ Aaron Walters

    It is not really begging. It is really, for the most part, just pre-ordering. It also is a great way gauging your market. One of the greatest things I have seen on Kickstarter is this: An artist was funded well over 300%. Instead of chalking it up as extra money for himself, he decided to make another album. So those who were originally contributed for one CD ended up getting two.

  • http://twitter.com/chrisbrooksgtr CB Guitar Solutions

    Wow, just wow. That Matt dude sure is missing the point, isn’t he?

  • http://twitter.com/HowToRunABand Chris Seth Jackson

    Businesses do pre-order campaigns to fund their product releases.

    What’s more shameful? Begging from a record label that takes the majority of revenue from the band.

  • http://twitter.com/chunter16 Christopher Hunter

    Like it or not, selling a CD, selling a ticket, selling a T-shirt, and running a kickstarter to raise funds are all the same, so either the whole thing is shameful or none of it is.

  • http://diymusician.cdbaby.com/author-chris-robley Christopher Robley

    Thanks for sharing. I hope you find a reason to make some music again, even if it’s just for you.

  • http://twitter.com/AndreaGerak Andrea Gerák

    It would be most interesting to see what the FANS think about it.

  • Carrington S. Scott

    In my opinion when you try new methods in order to try to get your message across, without having a major record label tell you what to do that’s being independent. Yes, different strategies could somewhat be controversial, but it’s independent. It might not be the type of strategy everyone is into, and it might not be the latest trend, but if it works it works that’s business. That is why it’s called music business and not just music. Remember this industry does not only belong to the majors, it belongs to the indies as well.

  • scoobie

    That Matt guy is either a complete idiot or genius depending on how you look at it. Completely clueless about crowd sourcing and completely smart about getting more hits on his garbage blog. Hey Matt, who will be the bigger “flash in the pan”? I’m thinking you.

  • BOSFan

    I will answer from both the fan and artist rep perspective — my own view. As a fan, I dig Kickstarter. For most of the same reasons mentioned already, being able to take part in getting a CD from one of your favorite artists produced, is a really cool thing. I did it before Kickstarter was around, and my gift for my donation was that I got the CD free, and my name is on the liner notes as a contributor. That’s cool, but the real joy is that i now have an awesome CD by that artist that I helped fund… even if it was a small amount of $.

    If I value the art, and I value the artist, I want to help see that artist succeed… unless I feel that the artist really doesn’t need my contributions or is going about it the wrong way. For example — an artist I know who has had international acclaim and is well known in MY area — recently put up a KS campaign. I thought, cool, he’s putting out a new album and is asking us for help. Great. But then I saw that he was asking for $35K. Seriously? Who needs $35K for a CD? I know… it’s possible to spend that kind of money, I get that. But when you are asking a relatively small segment of the world that knows your music to donate to your CD project, and you’re asking US for $35K, you’re over-asking. I would MUCH rather see that artist break it out into phases at $3 to $5k per phase, and would gladly contribute to each phase. Humility is required from artists who are asking US to fund a record. And for a record, I think that $35k is simply arrogance. Clearly, others felt the same, because he only generated $3k, which means that he didn’t get any of that money at all. KNOW your audience.

    From the artist rep perspective, I think that KS has a place for some artists, but not all. I rep a musician who is well established in his city, and has been for 25 years. He has not made the big time, though has had some success as he was signed to a label and had a top 40 single. He has self funded (friends, family, investors) his 10 CDs over the years and is putting out a new record as we speak. One of his bandmembers really wanted him to use KS to fund the CD, but it isn’t right for him. And I totally agree.

    The artist has an established reputation in his town and has successfully put out many CDs. He performs regularly and is a local celeb, meaning that the media know him, the music scene knows him, radio knows him and uses him for events etc. For him, using KS would give the perception that he actually can’t do this on his own anymore and that he needs the help of others to fund his future projects. Times are tough for everyone in this financial economy, and new music world that we live in where indie labels are frequently more successful than major labels. My artist still wants a major label deal, and is still trying for one. At this time, a KS campaign makes him ‘look’ desperate.

    That said, I fully support KS campaigns as a fan, and an artist, if it fits the artist and the fan.

  • http://twitter.com/nervousflower Melissa Yvette

    If you want artist investment with a financial return by all means call up RZO and find out when the next Bowie Bond is on offer… or see if sell-a-band is still in business. Fan fundraising is not an investment, it’s a purchase of whatever tangible or experiential things are on offer.

    In my experience with 2 successful kickstarter campaigns, fans really enjoy being in on the process of the making of the music. Also it is stated extremely clearly what why get for their purchase (CD’s Tshirts, house concerts, etc). More than that, they are proud when they get the album they made possible in the mail. It’s great to see how much fans interact with you at every step of the project. In my own funding of artists I like, the emotional attachment I have to my CDs and T-Shirts from those campaigns is definitely a currency return of a different sort – I LOVE those products because I had a part in their formation.

    In my opinion, for any artist that is somewhat established fan funding is the way to go. I would never advise an artist to “press and hope to sell” ever again. See what your realistic fan base is and press to the demand. It is far less shameful than borrowing an extortionist rate “advance” loan from the label. I would’t say no to all label deals (since I own a own label), but certainly having your funding in place gives you much more room in negotiating the budget and its allocations.

  • CrankyOldSchoolGuitarist

    @Velcro Mary: Once I might have agreed with you, but for many of the reasons DayMusicDied lists above, I think getting paid up front is a good idea. I’m tired of pouring piles of money & effort into a recording only to have people take it, play it a lot, and not pay a lousy 99 cents for it. You might say the tune sucks or is apparently not worth 99 cents to the person that stole it, but if it sucks WHY DID THEY DOWNLOAD IT? And if it’s not worth anything, why do they play it over & over & over?

    If I had been paid for every track that has been stolen from me, hell – even if I was paid for HALF of them, I might not feel this way. And I have had so-called “fans” tell me to my face that they would just burn copies of my CDs for all their friends because they “like my music so much” and then turn around & ask me when my next CD is coming out! Right after you pay me for the ones you bootlegged, you #%*!

    That said, I do agree that too many bands are trying to shoot for the moon with a Kickstarter campaign long before they are ready. Matthew Ebel basically runs his own Kickstarter-style campaign from his web site by having a pre-sale that offers various packages at various price points. I say good for him! I don’t think the Limousines are crybabies by a long shot. I do think De Mello sounds like he is anti-profit, at least where bands are concerned. In fact I have a way-long rant in me about that. Maybe I’ll write it up & post is here or at De Mello’s site. Not today, though. I have to follow up on getting some gigs, & that’s more important to me than blowing off steam that won’t change anyone’s mind, anyway.

  • david

    Thank you for the best analysis of releasing independent music yet.

  • Hank Wait

    I supported a kickstarter campaign and ya know what— they forgot to put my name on the album. I knew the person personally and have performed with them so I don’t think it was anything more than an accident and yet it also shows that they want the money but aren’t so careful about the rest. I would also vehemently object to Eric Victorino’s contention that you can’t make albums and write good songs while holding down a 40 hour a week day job. I know too many musicians who do just that.

  • http://www.facebook.com/jackbrownsings Jack Brown

    i have helped a few fellow artists as a Fan. A few of my fans have helped me. It enabled me to move forward and for that I am grateful. BE BLESSED

  • ReasonDisciple

    It is a form of glorified begging. I’m a Christians Hip-Hop artists and I hate when other Christian artist beg the fans for “donations”.

  • http://diymusician.cdbaby.com/author-chris-robley Christopher Robley

    Hey Jeff, thanks for sharing your story. Sounds like a ride. Pretty cool that John Peel helped you get that momentum.

  • http://twitter.com/UnleashedArts ChristianBandHelp

    Fan funding allows fans to have a stake in your music. People want to be the one to start an interesting conversation with their peers, to be interesting themselves by being part of your music. People that are a part of something as cool and creative as your music feel connected to the artistic community. This connection encourages fans to think beyond the normal tasks of everyday life and begin to express their own creativity. So, absolutely, YES to fan funding – get people involved in the arts!