Special Feature

5 reasons to look for investors vs donors

1.You’re properly aligning incentives and therefore creating true long-term backers rather than one-time supporters. If you win, they win – thus it’s natural for investors to want to support you beyond your first project.

2.Potential for larger checks: put yourself in the shoes of your potential backers – would you offer more money to own 1 CD (that’s going to become available on Spotify anyway) or to own a stake in all income that CD may generate?

3 .Appearances – Professional vs. amateur. Serious industry people like dealing with serious musicians or their managers. A record label or publishing deal you may otherwise covet is nothing more than a large investment with a pre-baked team that will spend that money for you. By talking in terms of investments, you demonstrate that you see commercial potential in your work and have a strategy. Speaking of which:

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4.Forces you to define your “story” and a defensible plan of action. Best and quickest outcomes come out of having a solid brand, plan and strategy in place. This is an exercise every artist should be going through anyway, but presenting a cohesive story to investors is a great reason to get going.

5 Makes you think about what your music is worth and why. Do you give up 20% for $10,000? 10%? 30%? Why? There’s no science to this question but it’s worth having an opinion even at an early stage. If you’re not sure how to approach this, get a music business consultant who knows how things works between an investor and an artist to get proper understanding .

By Rene Immortal Matik.

 

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