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Different ways to get financing for musical projects

Different ways to get financing for musical projects

On the occasion of the Music Festival that is celebrated today, the streets are filled with musicians who voluntarily give their melodies and voices to passers-by. In addition, free concerts are organized in many cities in different countries. On June 21, 2016, the Music Festival was held in more than 120 countries. However, musicians do not live on free concerts and their musical purpose comes at a cost. Therefore, we thought that this celebration was a good opportunity to give a review of the different ways we can find to obtain financing for musical projects .

Financing of musical projects

How much does it cost to make a record ? The Rolling Stone magazine published an article in which it is said that bands and famous artists came to destine millionaire amounts to get their records forward. Metallica spent a million for one of their albums in 1991 saw the light and the sixth album of Guns N ‘Roses, Chinese Democracy, cost 13 million dollars. However, we are talking about crazy figures. Through the Internet we can find more realistic costs that depend on many factors such as the costs of studies, production, distribution and many others. Making a first study of how much it will cost us to get our musical project ahead is an essential step to get the most appropriate funding. At the moment we know how much money we need we have several options, although we highlight two:

‘Crowdfunding’ platforms

These platforms work with independent investors that contribute capital to the projects that interest them. Therefore, having our clear objective and a defined budget will help us to attract investors to our project. In addition, in crowdlending we must take into account the reward we are going to offer investors, the taxes to be paid and the platform fees. On the Internet we can find a huge variety of platforms that are especially designed for musicians. Finding the one that best suits our project is essential to ensure success in financing.

In addition to specialists, there are general crowdfunding platforms that offer P2P loans to obtain financing for projects of all kinds. In the following table we can see an example:

Lender Quantity Cost I’m interested

P2P Loan Younited Credit

From € 1,000 to € 40,000 From 5.92% TIN (6.08% APR) Apply for

 

 

 

Subscription systems

If we already have a series of followers we could set up a subscription service by which our subscribers will receive exclusive material such as songs or versions, for example. With the price of the subscription we can go ahead with the expenses of our launch. This type of financing can be a bit more complicated to start, because we must create an exclusive portal for our followers. In addition, we will have to continue promoting our music on other public platforms to gain subscribers.