Music royalty-based crowdfunding is a model where musicians or music projects raise funds by offering investors or backers a share of future royalties generated by their music. This approach allows artists to raise capital without taking on debt or giving away ownership stakes in their work. We can help with music royalty crowdfunding, whether you are a singer, songwriter, band, or group.
Music Royalty-Based Crowdfunding Process
Here’s how the music royalty crowdfunding process typically works:
Music Royalty-Based Crowdfunding Step One: Project Creation
You need to start by creating a campaign on a crowdfunding platform specifically tailored for music projects or at least one that has done music royalty crowdfunding previously. You’ll outline your project goals, the amount of funding you need, and the terms of the royalty arrangement you’re offering. Finding other successful music royalty-based crowdfunding projects to find a model that fits your genre and background will be helpful.
You’ll define how the royalties will be distributed among investors. This could be a percentage of revenue from music sales, streaming platforms, licensing deals, or other income streams. You’ll have to balance not giving away too much but enough to attract and retain investors. 
Music Royalty Crowdfunding Step Two: Campaign Promotion
While most crowdfunding platforms attract decent traffic, you’ll still need to promote your campaign through social media, email newsletters, live performances, and other channels to attract backers. You can offer incentives beyond the promised royalties, such as exclusive content, merchandise, or experiences, to encourage people to invest.
Music Royalty Crowdfunding Step Three: Investments
Hopefully, at this point in your music royalty-based crowdfunding campaign, fans and investors are contributing funds to the campaign in exchange for a share of future royalties. The amount each backer receives depends on the terms of the royalty arrangement and the amount they invest. Once the campaign reaches its funding goal, the crowdfunding platform disburses the funds to you, and you use the money to produce and promote their music.
Music Royalty-Based Crowdfunding Step Four: Post-Campaign
As you generate revenue, the crowdfunding platform collects the royalties and distributes them to investors according to the terms of the agreement. This could be on a regular schedule, such as quarterly or annually.
Throughout the process, make sure you communicate with backers, providing updates on the project’s progress and the royalties earned. Transparency is crucial to maintaining trust with investors.
Music Royalty Crowdfunding
Crowdfunding has become popular for musicians to raise funds for their projects, including album recordings, tours, music videos, and more. While there are many general crowdfunding platforms like Kickstarter and Indiegogo that musicians can use, there are also platforms specifically tailored for music-related projects. When choosing a crowdfunding platform for your music project, it’s essential to consider factors such as fees, reach, and the platform’s track record with similar projects. Additionally, thoroughly review the terms and conditions to ensure they align with your goals and expectations.
This is one area where our free services can be valuable. We can help you find the best match for your campaign among the music royalty crowdfunding platforms. We’ll connect you and help negotiate the best deal if you’d like.
Summary and Our Work
Royalty-based crowdfunding can be an attractive option for musicians who want to maintain control over their work while accessing the capital they need to fund their projects. However, both artists and investors need to understand the risks involved, such as the potential for lower-than-expected royalties or the failure of the project to generate significant revenue.
We can help with all the steps outlined above and more. Please feel free to contact us about music royalty-based crowdfunding or any aspect of royalty crowdfunding you have questions about.
