The problems with crowdfunding
With the introduction of new and accessible technologies, the concept of music is changing as it’s becoming easier for independent musicians to embrace their talents, their visions, and their dreams. However, some artists fear the startup costs of writing and recording quality music, while others find that an independent music career is unsustainable due to a lack of financial backing.
If we want to see musical innovation and a new wave of independent talent thrive in the next decade, it’s critical that we take a step back and create equal opportunities for every musician. That’s where crowdfunding comes in.
What is Crowdfunding?
Crowdfunding allows fans of indie artists to donate small (or large) amounts towards the completion of specific projects like a new track release or even the creation of a full album. While fan-funded music helps to eliminate the daunting financial barriers of the music industry, crowdfunding via popular online platforms like Kickstarter and Patreon doesn’t normally work so smoothly.
Far from Perfect
There’s no doubt that these platforms have helped a number of talented musicians get a running start on their careers and encourage them to continue creating great music, but I would argue that there are too many underlying problems within the infrastructure of websites like Kickstarter and Patreon to bring a viable return to the music community.
Kickstarter and the Mysterious Staff Picks
Kickstarter, the largest online crowdfunding platform, has been criticized with a lack of transparency regarding which projects it stamps with the coveted “Kickstarter Staff Pick” seal of approval. 89% of projects which bear the title of “Staff Pick” meet their goals, while the rate of projects funded without the designation falls to less than one-third.
The worst part of all is that Kickstarter’s staff claim totally contradictory algorithms behind which projects are deemed worthy of the great “Staff Pick”, leaving earnest creators frustrated and discouraged.
Patreon Mishaps
Patreon is another popular source of fan-powered crowdfunding for independent musicians, but it, too, is not without its hiccups. In 2017 and 2018 alone, Patreon has undergone multiple blunders.
After the fee change they announced in December 2017, many creators reported a mass exodus of backers, their notifications full of deleted pledges. A Twitter user actually did the math, determining that the fee change would result in creators earning 4.62% more, backers (called “patrons”) paying 8.67% more, and Patreon making a whopping 118% more.
While Patreon did revoke the fee change and issue an apology, questions still stand about the company’s motivations.
The Bottom Line
As more and more concerns like these add up, the idea of crowdfunding becomes less fun and less appealing, dissuading would-be fans from making valuable contributions to the community.
Until these problems are addressed and new solutions are implemented, crowdfunding remains far from perfect way for independent musicians to make a living with their music and continue providing solid tracks to their fans. And, as long as these financial barriers exist, the music community heads closer to its demise.
It’s time that resources who claim to support indie musicians truly put them first. At Skyhitz we are working on this problem, how do you think crowdfunding could better serve musicians around the world? Let us know what you think.
