Defining A Successful PledgeMusic Campaign
In this piece we take a close look at how to define a successful PledgeMusic campaign, and the different ways in which the service can be used to finance multiple aspects of a band or artist's career development, such that they can maximize the profitability of their various projects.
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Guest Post from PledgeMusic News
PledgeMusic campaigns create equity in a variety of ways for artists. Artists have varying financial and sales goals. However, there are similarities among all the campaigns, beyond looking at cash earned at the end. Our campaigns support the life cycle of a project. PledgeMusic is only involved for part of the time, but the financial results impact the artist’s entire business.
1. Project Funding
PledgeMusic artists raise enough money through the campaign to fund the entire recording of an album (or other project) without having to sacrifice their master rights or long-term sales. This is vital because many artists who receive advances in the modern music industry are forced to share a significant portion of physical/digital sales, SoundExchange royalties, and other revenue (licensing, album merchandise) for several years, even if they don’t sell their master.
2. Financial Flexibility
In addition to the aforementioned direct funds raised for the project itself, PledgeMusic artists are raising funds that will protect future revenue. They can invest cash as they see fit — publicity, digital marketing, and more — or enter into more advantageous label and distribution deals because they don’t need the advance.
3. Merchandise
PledgeMusic artists use funds to manufacture product needed for their campaign and beyond for road sales and retail revenue. Artists can budget more money for production and manufacturing, which means more revenue on EVERY SALE (not just what they are selling on PledgeMusic).
In addition, artists controlling their bank means more beneficial long-term planning. If they want to manufacture enough vinyl to last two years, or t-shirts/posters for the entire tour – they will INCREASE their profitability on all those items. They don’t have to fixate on the next three months or six months. Part of the “money” at the end of the campaign is the equity with these goods.
HOW DOES PLEDGEMUSIC HELP MAXIMIZE RESULTS?
PledgeMusic artists are working with leaders in marketing and product management, uncovering new ways to excite their fans and earn more revenue. Our campaign team shows artists how to increase profitability with deluxe versions of their repertoire, digital assets, bundles, and products with low minimums that aren’t being utilized in other stores (disposable cameras, test pressings, photo books among other things).
WOULD ARTISTS HAVE MORE CASH IF THEY MANAGED A SEPARATE STORE?
No, because it’s not just about “products,” it’s about strategy. PledgeMusic is regularly capitalizing on digital marketing to deliver 8-10x return on each dollar invested.
PledgeMusic is also delivering savings and time-tested relationships to campaigns on manufacturing and fulfillment that are unmatched. Services aren’t brokered and there are no kickbacks. Artists are guaranteed unbiased recommendations!
Finally, artists can ultimately invest more where it matters — the creative side — including those immense superfan experiences that wouldn’t be found anywhere else!
*Illustration by Jeff O’ Neill
