Crowdfunding is the practice of financing a project for small amounts of money from a large number of people.
And the flow of income for independent artists that I like the most. It's not the one with the highest monetary value if he is a positioned artist, since those are brands and concerts, but it has the most sentimental value.
For an emerging artist, it may be the best resource for reinvestment of material needed. A lot of people say it doesn't work even though they have tried a couple of times. But let's see a few statistics that will change your mind.
The total crowdfunding earned globally from 2012 to 2015 is 34.4 billion USD
It is projected that by 2030, the market will be worth around 300 billion USD
Last year there were 6,455,080 campaigns globally and by 2023 about 12,063,870,1023 campaigns are projected
Last year's funds raised grew 33.7% and, on average, the total amount of all campaigns was 824 USD
15.17% of donations are in cell phones. This percentage means that users take the time to think about which campaign they would most support.
Individuals between 24-35 years of age participate more in campaigns. People over 45 years donate much less. The new generation of investment is more than notorious.
Possibilities to fail:
On average, the success rate is 22.4% which 78% of campaigns exceed their goal
Campaign managers who share less than 2 times have a 97% chance of failure
Maybe the success rate seems too low or risky. But since we see the total sum of earnings that 22.4% ceases to be so small. Likewise, of that success 78% exceeds its goal. So the success rate, although relatively small, has a very high probability of higher earnings than what was requested. Such is the example of the video game Star Citizen, who asked for 2 Million USD and ended up collecting 250 Million.
Percentages of success:
The average campaign lasts about 9 weeks
42% of the funds are earned between the first day and the last 3 of the campaign
Almost all projects have about 47 supporters
38% of campaigns with a team behind achieve the goal
There is 3 times more chance of having a successful campaign if followers are updated every 5 days. They collect 126% more than if they don't
On average, successful campaigns have at least 4 updates or news. Campaigns with personal videos gather 105% more
Adding personal information can increase 79% more followers
If the campaign reached 40%, visitors stay on page 31% more and 22% are more likely to donate.
What are these percentages?
People want to invest in something they like and see the possibility of winning. They are interested in knowing who are the people behind the project and the process they follow. They like transparency, being informed and having a "personal" treatment. That is why social networks are a critical factor for success. For each increase in friends of FB say 10, 100 or 1000 the probability of success is 9%, 20% and up to 40%
On average, these figures are the ones that are most likely to be successful in terms of “big” social networks. YouTube is not being told that it is also something gigantic or Soundcloud and the other possible 34 global social networks.
Kickstarter has had 319,051 projects completed
Projects in Fundrazr have 41.8% of successful campaigns
Indiegogo projects have collected an average of USD 41,634
All or nothing campaigns have been funded twice as many campaigns where you stay everything.
These platforms are the most used. However, in 2012 there were only 450 platforms. In 2016, it is estimated that there are about 2,000.
Global earnings in 5 years:
South America: $ 85.74 million
Oceania: $ 68.8 million
Africa: $ 24.16 million
North America: $ 17.2 billion
Asia: $ 10.54 billion
Europe: $ 6.48 billion
Percentage of earnings in each sector:
Business and entrepreneurship: 41.4%
Social Causes: 18.9%
Films and performing arts: 12.2%
Real Estate: 6.2%
Music and recording arts: 4.5%
These are the areas and the percentage of investment in each. Now let's do the calculations. All these calculations are estimates and projections with the variables that are had. If in North America there are around 17.2 billion USD, it is 22% of the 38 billion global. Of those 17.2 B for music were USD 774 million in 5 years. If it is estimated that by 2030 the market value will be 300 billion. This means that there will be a growth of 1000% only in 10 years. If it is estimated that in 10 years it is still 4.5% for music, it would be 2.97 billion in the US alone. The USA has 18% of the global market so Canada and Mexico have the other 4%. This means that there will be a massive gigantic growth only in 10 years. If it is estimated that in 10 years it's still 4.5% for music, it would be 2.97 billion in the US alone. The USA has 18% of the global market so Canada and Mexico have the other 4%. That means they have about 22% of the North American market. If in 10 years it is estimated that the USA will have a market of 66B then Canada and Mexico would have a market of 14.5 B. Then the music market is around 653 M. This is not counting the alliances that are being made between Mexico and Canada because Canada is supporting the US less commercially. Not to mention that the culture of crowdfunding in Mexico is just going to explode. Imagine 653M for music. Now, we are not saying that the USA only focuses on the crowdfunding of its own country ...
Do it when you have more than 70 constant likes in your posts
Create an honest, concise and attainable budget.
Have ways to charge your anchorers with great price dynamics
Give back to your anchorers with something innovative and that interests them.
Do not use the most popular platform. Use the one that suits your campaign.
It is a very noble thing to know that the people who listen to you, understand you and identify with you, decide to support the same vision as yours. For me, crowdfunding is trust, faith and loyalty that you will achieve your tasks and that people are happy to be part of them.